Supporting Mental Wellness: 7 Solutions Brokers Can Offer Clients

Quick look: May is Mental Health Month, an ideal time for brokers to consider how a professional employer organization (PEO) partnership can help clients build healthier, more engaged, and productive workplaces. Read on to learn about the rising demand for mental wellness benefits and seven solutions brokers can offer through PEOs to support employee well-being.

Mental health benefits have evolved from being a nice-to-have perk to a must-have benefit offering in recent years.

In today’s fast-paced and increasingly complex work environment, businesses face mounting pressure to support staff well-being, particularly mental health. Gallup research found that half of U.S. workers reported having experienced a lot of stress the previous day. Further, the Society for Human Resource Management (SHRM) states that 90% of employers provide mental health coverage, up five points since 2021.

While mental wellness has become a central focus for all organizations, small- and medium-sized businesses (SMBs) could often benefit from additional resources and expertise to implement effective mental health strategies. That’s where brokers and PEOs can become powerful allies.

By partnering with a PEO, brokers can connect their clients to comprehensive human resources (HR) services, cost-effective employee benefits, and vital mental health resources that may otherwise be out of reach for smaller employers. Providing this assistance reinforces a broker’s ability to deliver holistic solutions that improve client satisfaction, retention, and employee well-being.

In honor of Mental Health Month, which takes place each May, let’s explore the effect mental wellness has on the workplace and how brokers and PEOs can collaborate to offer SMBs an enhanced level of support.

At a glance: mental health in the workplace

When employees struggle with their mental health, it can take a significant toll on workplace performance, leading to lower engagement, increased absenteeism and presenteeism, and diminished productivity. Additionally, almost three-quarters of workers said stress negatively impacts their professional relationships.

Mental health challenges may also impact clients’ profitability, as demonstrated by the following recent data:

• 12 billion working days are lost annually worldwide due to anxiety and depression.
• Adults with private insurance who receive treatment for anxiety or depression face nearly double the yearly out-of-pocket expenses compared to those without a mental health diagnosis, potentially increasing overall healthcare costs.
• 25% of employees have considered resigning due to mental health challenges, and replacing just one of them could cost clients approximately $4,700.

On the other hand, data also shows that implementing mental health initiatives in the workplace strengthens it. The National Alliance on Mental Illness (NAMI) reports that over 80% of employees believe mental health benefits, employee assistance programs (EAPs), flexible work arrangements, and sick days for mental health contribute to a positive organizational culture.

7 ways to help clients elevate their mental wellness offerings

Many small businesses often operate with lean teams and a sharp focus on growth. This resourcefulness and determination often mean they may not have in-house HR teams or the capacity to proactively manage and enhance their mental wellness benefits.

This is where brokers can make a difference by recommending a trusted PEO partner that can help clients implement initiatives such as:

1. Employee assistance programs (EAPs)

EAPs are a fundamental part of a comprehensive mental health benefit offering.

Per SHRM, an EAP is “a work-based intervention program designed to assist employees in resolving personal problems that may be adversely affecting the employee’s performance.”

EAPs are often free for employees and their households and feature confidential professional guidance on various topics, including:

• Depression, grief, loss, and emotional well-being
• Family, marital, and other relationship issues
• Life improvement and goal-setting
• Addictions such as alcohol and drug abuse
• Stress or anxiety with work or family
• Financial and legal concerns

2. Telemedicine

Telemedicine usage soared during the pandemic and is now here to stay. Recent research shows that three-quarters of consumers have used virtual healthcare at least once, and 83% of those people have used it within the last year.

With support from a PEO partner, brokers can equip SMBs with telemedicine services for both physical and mental healthcare coverage. Additionally, because most standard health plans now include telehealth services, clients can typically provide this convenient option at little to no additional cost.

3. Mandatory accommodations

HR compliance is constantly evolving and can be challenging for small businesses to keep up with. A PEO partner can help them stay compliant with the various requirements concerning mental health in the workplace, including:

• The Mental Health Parity and Addiction Equity Act (MHPAEA): Requires employers with 50 or more employees to provide coverage for mental health, behavioral health, and substance-use disorders equal to physical care coverage.
• The Americans with Disabilities Act: Limits an employer’s ability to ask workers questions about disabilities, including mental health conditions, and requires employers to provide reasonable accommodations that enable employees to execute and keep their jobs.
• The Family and Medical Leave Act (FMLA): Mandates that employers provide 12 weeks of job-protected leave to eligible employees, including in mental health-related instances. (Please be aware that various states and local jurisdictions have their own rules concerning paid and unpaid family leave, as well as paid and unpaid sick and safe leave. Please refer to the specific laws relevant to your location to ensure you have the correct information.)

4. Expanded paid time off (PTO)

Many employers have gotten creative with new PTO policies to combat employee burnout.

SMB leaders can rely on a PEO’s HR experts to help them offer mental health days to encourage time away from the workplace, floating holidays to promote inclusivity, and volunteer time off (VTO), as giving back is associated with lower rates of depression and anxiety.

5. Flexible work policies

Hybrid and remote working is now commonplace and has been shown to support work-life balance and reduce burnout. Two-thirds of hybrid workers report their mental health has improved due to their work arrangement, and over 80% say they have more time to spend with others and on their personal well-being.

Clients can experience these advantages by leveraging a PEO’s HR Managers to create compliant strategies offering employees flexibility over where, when, and how they work.

6. Benefits communication

According to SHRM, 67% of U.S. workers are unaware or only somewhat aware of the mental health resources their organization offers.

PEOs can enable clients to fill this knowledge gap by helping them design a comprehensive, ongoing employee benefits communication plan that includes the following:

• Maintaining and distributing updated benefits materials
• Providing guides and instructions before and during open enrollment (a PEO like ExtensisHR also has a customer service team that specializes in guiding employees as they compare plan features, navigate qualifying life events, and more)
• Sending targeted emails based on demographics or plan choices

7. Data-driven HR strategies

Data is at the center of every sound strategy. To best support their employees’ mental health, clients must first understand what their experience in the workplace is like.

Many PEOs offer data analytics tools so SMBs can understand:

• Benefits utilization (e.g., how many employees use available mental health resources)
• Absenteeism and turnover trends, which can be uncovered through a human resources information system (HRIS)
• Employee engagement and satisfaction, measured through tools such as pulse surveys, one-on-one meetings, and other feedback methods—often facilitated by an employee engagement platform

ExtensisHR: a PEO focused on helping clients improve their business and their health

As companies continue to invest in mental health, they will look to their brokers and benefit advisers to provide meaningful support for employee well-being.

A PEO can assist clients as they address mental health in their workplace by helping them enhance employee benefit plans, design flexible work policies, and more.

However, it’s important to remember that not every PEO is the same. Their levels of customization and customer service can greatly vary, and it’s important to choose a partner that will prioritize your clients as much as you do.

ExtensisHR, a broker-friendly PEO partner, stands apart with its:

• Tailored benefits packages and comprehensive administration and management services
• Dedicated, SHRM-Certified HR Managers
• Industry-leading customer service team that answers phone calls in 10 seconds or less
• Discounted access to 15Five, a top employee engagement platform

With the assistance of a PEO, your clients can take steps toward creating a healthier, more resilient work environment. For brokers and SMBs alike, the message is clear: investing in mental wellness is not only good for people, it’s smart business.

It’s a new era for workplace mental health. Contact the ExtensisHR team today and start helping your clients create a more supportive and stigma-free environment.