2025 Workplace Mental Health and Wellbeing Trends

Written by Matt McCreary, Chief Product Officer, CuraLinc Healthcare

Employee mental health and wellbeing remains a top priority for employers, but as the workplace continues to evolve, so do the challenges and opportunities in supporting a healthy workforce. Rising health care costs, shifting employee expectations and the need for more proactive, data-driven solutions are pushing employers to rethink their approach to mental health benefits.

In 2025, successful companies won’t just offer mental health support—they’ll take a strategic, holistic approach that prioritizes accessibility, engagement and long-term sustainability. From addressing cost concerns to equipping managers with the right tools, here are six key trends CuraLinc Healthcare has identified as shaping workplace mental health and wellbeing in the year ahead.

Rising health insurance costs and the need for a strategic approach

In 2025, U.S. employers expect health insurance costs to rise an average of 5.8%, fueled by both higher medical service costs and increased utilization. Behavioral health claims have increased rapidly, with one-third of insurers predicting cost hikes of 15% or more per person for mental health services over the next three years. This surge in utilization and costs has left employers struggling to navigate a challenging landscape that requires them to balance cost and access.

It's important to remember that the financial implications of mental health and wellbeing challenges extend into the workplace itself. When employees struggle with untreated or inadequately managed mental health concerns, productivity declines, absenteeism rises and engagement suffers. A strategic approach to benefits prioritizes accessible, high-quality care while also considering financial sustainability.

Growing demand for prevention and proactive support

A reactive approach to mental health—one that only intervenes when employees are already in crisis—is not sustainable or effective. Employers are increasingly recognizing the need for proactive and preventive strategies that support wellbeing before challenges escalate. This shift reflects a broader understanding that mental health is not just about treatment but also about prevention. By investing in early identification tools, accessible support programs and workplace policies that encourage employees to seek care, employers can create an environment where employees feel empowered to prioritize their mental wellbeing.

When companies actively promote mental wellbeing, they help employees address challenges earlier, preventing more severe issues down the road. This not only improves individual wellbeing but also contributes to long-term cost savings and workforce productivity. By embedding mental health into workplace culture, organizations foster a healthier, more resilient workforce while simultaneously reducing the costs associated with delayed care and crisis intervention.

Increased focus on data-driven decision-making

As workplace mental health strategies evolve, data is playing an increasingly important role in shaping how employers design and refine their benefits offerings. Rather than relying on broad, one-size-fits-all programs, employers are turning to data-driven insights to better understand employee needs and deliver targeted support. By analyzing utilization trends, engagement metrics and workforce demographics, employers can identify gaps in their mental health benefits and adjust their approach accordingly. This ensures resources are being allocated effectively, leading to better outcomes for employees and a stronger return on investment for the organization.

A data-informed approach not only helps employers tailor benefits but also enhances their ability to measure impact. Tracking key indicators—such as the effectiveness of early intervention programs, EAP utilization, outcomes and the correlation between mental health support and productivity—allows employers to refine their strategies over time. 

A shift toward a more holistic approach to mental health and wellbeing

The traditional model of mental health benefits was centered primarily on clinical care, but this model no longer meets the needs of today’s workforce. Employee mental health and wellbeing is impacted by everything from financial stability and caregiving responsibilities to social support and other life circumstances. When employees struggle with issues like housing insecurity, childcare challenges or financial stress, their overall health is inevitably impacted, as are their productivity and engagement at work. Employers are expanding their approach, moving beyond standalone mental health services to embrace more comprehensive, holistic wellbeing initiatives.

This shift includes integrating mental health support with broader resources that address social determinants of health (SDOH), financial wellness, health coaching and work-life balance. In addition, there is an increasing demand for benefits integration that enables vendors to work together more efficiently to provide enhanced whole-person care. Taking a holistic approach not only improves mental wellbeing but also fosters a workplace culture where employees feel supported in every aspect of their lives.

Increased training and support for managers

Managers are at the front lines of workplace culture. They play an important role in supporting employees' mental health and fostering an environment where people feel valued and heard. Research shows that managers account for 70% of the variance in employee engagement. Unfortunately, many managers today still feel unprepared to navigate mental health conversations, with 7 in 10 senior-level employees reporting they have not received training on how to discuss mental health with their teams. As awareness grows around the importance of workplace mental health, employers are investing in training programs to equip managers with the skills to recognize early signs of distress, hold supportive conversations and connect employees with available resources.

That said, supporting mental health in the workplace isn’t just about what managers can do for their teams—it’s also about ensuring they receive the support they need to thrive. Many managers face high levels of stress and burnout, with 70% saying they would take a pay cut for a job that better supports their mental wellness. Employers that prioritize manager wellbeing by offering leadership training and tailored mental health and wellbeing resources can create a healthier work environment from the top down.

Focus on increasing employee engagement with benefits

Providing high-quality mental health and wellbeing benefits is essential, but ensuring employees use them is just as important. Many organizations continue to struggle with low engagement. In fact, data shows that more than two-thirds of employees report they don’t take full advantage of their benefits because they find them too time-consuming, confusing or difficult to access. This highlights a clear gap between the benefits employers provide and the awareness, accessibility and ease of use employees need.

To bridge this gap, employers must take a proactive approach by eliminating barriers to care and making benefits easier to access. This includes partnering with vendors that offer convenient access and provide support through targeted communications that reinforce the value of available resources. By focusing on engagement strategies, employers can maximize the impact of their mental health and wellbeing benefits.

Prioritizing workplace mental health in 2025

Prioritizing mental health isn’t just the right thing to do—it’s a critical business strategy that drives productivity, retention and overall organizational success.