Why Mental Health Should Be a Workplace Strategic Priority in 2026

Sixty-one percent of U.S. workers reported declining productivity due to mental health issues, according to a 2025 Mental Health Barometer by TELUS Health, a global digital health provider. Additionally, the latest TELUS Mental Health Index showed American workers’ overall mental health has fallen to its worst point in nearly three years.

To reverse this trend, organizations should act now with targeted, evidence-based interventions because an effective productivity strategy for 2026 likely won’t come from new software or restructured workflows. It will more likely come from addressing a core challenge holding your workforce back — their mental health.

Addressing the Challenges

TELUS Health research found anxiety and feelings of isolation, which have been the poorest-scoring mental health indicators for more than three years, now affect 28% and 27% of workers, respectively. These aren’t abstract wellness concerns — they translate directly into reduced focus, difficulty managing stress and lower motivation during the workday.

Growing financial pressure also has become a dominant force in workplace mental health. TELUS research found:

23% of surveyed workers cite personal finances as their primary source of stress, while 62% have reduced spending due to financial concerns.
Workers without emergency savings score 35 points lower on mental health measures and are three times more likely to report financial issues affecting their productivity.

To better support employees’ financial well-being, consider implementing the following strategic approaches:

Integrate financial counseling and planning tools. Provide personalized financial guidance, not just generic resources.
Offer innovative benefits. Solutions like earned wage access, emergency savings programs and student loan assistance can address real financial pain points.
Connect financial and mental health support. The two are deeply intertwined —effective programs address both simultaneously.

Closing the Communication and Awareness Gap

More than half of the surveyed workers said communication about health and well-being programs is unclear or inconsistent. In addition, 17% rarely or never receive information about these resources and nearly half said their manager has never communicated about the availability of mental health support.

Workers who believe their employer communicates clearly about well-being score more than seven points higher on the TELUS Mental Health Index than those who don’t.

Tips to improve awareness and engagement include:

Creating multi-channel communication strategies. Mental health resources need visibility across email, intranets, team meetings and consistent manager conversations.
Personalizing messaging by demographics. Employees newly entering the workforce will have different well-being needs compared to managers, catering to various generations.
Measuring awareness and utilization. Track whether employees know what’s available and whether they’re using it. Gaps in either area signal the need for strategic adjustments.

Equipping Your Leaders

Even though managers are the most critical lever organizations have, only 56% of surveyed people leaders felt equipped to support an employee experiencing a mental health issue, while 1 in 3 said their organization provided no training at all.

When managers know how to recognize distress, navigate empathetic conversations and connect employees to support, they can become force multipliers for your entire well-being strategy.

Organizations may better equip their managers by:

Providing structured training programs that teach practical skills. Provide resources and training to help recognize signs of burnout, conduct supportive conversations, and understand when and how to escalate concern.
Creating ongoing support systems to reinforce the application of skills. Managers should have access to resources, coaching and refresher content as situations evolve.
Building psychological safety from the top. When leaders model healthy boundaries and normalize well-being conversations, utilization increases and stigma decreases.

How to Be Proactive

The mental health landscape is evolving rapidly, and what worked two years ago may not address today’s challenges. Organizations that stay ahead typically use data to anticipate challenges and build proactive strategies.

Leading organizations are taking several key steps:

Benchmark and assess regularly. Understanding how your workforce compares to industry standards helps identify where to focus resources. Regular surveys and mental health assessments provide the insights needed to make informed decisions rather than assumptions.
Build integrated solutions. The most effective approaches don’t treat mental health, physical health and financial well-being as separate silos. Employees experience these holistically, and programs should reflect that reality.
Leverage external expertise when needed. Many organizations find value in partnering with specialized providers that bring evidence-based interventions and implementation expertise that internal teams may not have bandwidth to develop. The right partnerships can help organizations design solutions tailored to their specific workforce demographics, industry challenges and organizational culture.

The Path Forward

The organizations that will thrive in 2026 and beyond are, in general, those treating employee well-being as a core business strategy, not an HR checkbox.

Meaningful progress is achievable with the right combination of clear communication, manager enablement, financial support and strategic planning. Your workforce is likely telling you what they need through declining mental health scores and reduced productivity. The competitive advantage goes to organizations that listen and respond with evidence-based action.

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