Report Finds 1 in 4 Workers Unaware of Mental Health Benefits - Tilson

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Report Finds 1 in 4 Workers Unaware of Mental Health Benefits

Benefits & Compensation, Culture | April 2025

A survey conducted in January 2025 by the National Alliance on Mental Illness (NAMI) found that 1 in 4 workers is unaware of whether their employers offer mental health benefits, employee assistance programs (EAPs), flexible work arrangements, or sick days for mental health. Even more concerning, only half of employees understand how to access these benefits through their employer-sponsored health insurance.

The second annual survey, conducted with Ipsos, polled more than 2,000 full-time employees from companies with over 100 workers across multiple industries. Despite the strong demand for mental health support, the results highlight a significant gap in communication between employers and their workforce.

The Disconnect Between Benefits and Awareness

NAMI found that, similar to last year’s findings, only about a fifth of employees have received training on mental health conditions or symptoms, despite more than three-quarters expressing interest in learning about mental health benefits and receiving general education about mental health. This lack of awareness leads to underutilization, leaving employees without the support they need to manage their well-being effectively.

Although workers have voiced a strong desire for mental health care benefits, HR professionals report that these offerings are often underused. A separate One Medical survey found that employees avoid using these benefits for a number of reasons:

  • 45% cite a lack of time as the primary barrier to seeking mental health care.
  • 25% report feeling embarrassed about using mental health services.
  • 22% mention concerns about cost, despite employer-sponsored programs designed to offset expenses.

Furthermore, stigma and judgment surrounding mental health issues persist in many workplaces. NAMI data shows that while more than half of employees are comfortable discussing their mental health with a close friend or manager, only 39% would feel comfortable discussing their mental health with HR. This suggests that even when resources are available, fear of judgment may prevent employees from accessing them.

Why Employees Need to Be Aware of Their Mental Health Benefits

For employees to take full advantage of mental health benefits, they need to be informed, feel safe using them, and trust that their employer supports their well-being. Here’s why increasing awareness is crucial:

1. Improved Well-Being and Productivity
Mental health has a direct impact on workplace performance. Employees struggling with anxiety, stress, or depression may experience difficulty concentrating, lower productivity, and increased absenteeism. When workers know about and utilize their benefits, they are better equipped to manage their mental health, leading to a healthier and more engaged workforce.

2. Reduced Stigma in the Workplace
When companies actively promote mental health resources, they create an environment where employees feel comfortable seeking support. Open discussions, manager training, and clear communication about available resources can reduce stigma and normalize mental health care in the workplace.

3. Greater Employee Retention and Satisfaction
Employees who feel supported in their mental health are more likely to stay with their employer. Access to mental health benefits—when properly communicated—can improve job satisfaction, reduce burnout, and build trust between employees and management.

4. More Cost-Effective for Employers
Unaddressed mental health issues can lead to higher health care costs, increased absenteeism, and lower overall morale. When employees know how to access benefits and feel encouraged to use them, employers can reduce costs associated with turnover and lost productivity.

How Employers Can Improve Awareness and Utilization

The NAMI survey highlights the need for employers to actively promote mental health resources rather than assume employees will seek them out on their own. To increase awareness and utilization, businesses should consider the following strategies:

  • Regularly share mental health benefits information through multiple communication channels, such as email, internal portals, newsletters, and staff meetings.
  • Incorporate mental health benefits into onboarding materials so that new employees understand available resources from day one.
  • Train managers and HR staff to recognize mental health concerns and direct employees to appropriate resources.
  • Encourage a culture of openness where employees feel safe discussing their mental health and seeking support without fear of stigma or retaliation.
  • Host mental health workshops and webinars to educate employees on available benefits, coping strategies, and self-care techniques.

Download our free insights to Managing Mental Health at Your Organization here.

The Employer Takeaway

The findings from the NAMI survey make it clear: having mental health benefits isn’t enough—employers must actively ensure their workforce knows about them and feels empowered to use them. By taking proactive steps to educate employees, companies can improve well-being, productivity, and retention, all while fostering a healthier and more supportive work environment.

Are your employees aware of the mental health benefits available to them? Our expert HR solutions provide businesses with access to high-quality mental health benefits, employee assistance programs, and wellness resources. We help organizations effectively communicate these offerings, ensuring employees feel supported and empowered to use the resources available to them. Partner with Tilson to build a workplace that prioritizes mental health and employee well-being.

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