Why The Best Workplaces Are Investing In Mental Health
From sabbaticals to mental health days, companies are adding benefits to help avoid employee burnout.
This article by Emily McCrary-Ruiz-Esparza, freelance writer, was originally published on Inc.com.
"You wouldn’t expect a person to run a marathon on a broken ankle, and so, an employer can’t expect an employee to lead with burnout or anxiety,” says Teira Gunlock, CEO of First Stop Health, a Chicago-based virtual health care platform with annual revenue in the eight figures. “It’s on us to be able to give them the tools and resources to be able to take care of themselves.”
First Stop Health—which offers benefits like paid sabbaticals and unlimited virtual therapy appointments for its 180 employees and their families—is among the 514 companies on Inc.’s 2025 list of the Best Workplaces.
This year’s honorees put an emphasis on mental health: 79 percent of Best Workplace honorees offer their employees mental health days—extra time off to recharge and de-stress—while only 51 percent of non-honoree applicants do the same. They’ve also added many other benefits to help fight burnout, which can lead to higher turnover.
Expanding Access To Mental Health Care
Some companies are expanding access to mental health resources by offering more choices for care and lowering costs. The public relations and social media agency Media Minefield, based in Minnetonka, Minnesota, has 34 employees and brings in seven-figure annual revenue. It eliminated co-pays for virtual therapy sessions with its telehealth provider and now covers unlimited virtual clinical care appointments, including psychiatry and medication management.
The Washington, D.C.-based American Psychological Foundation (APF), a nonprofit that provides grants for psychologists and service organizations, now offers a health care plan—which includes mental health care coverage—and is entirely free to its 10 employees, who can opt for a paid tier of additional coverage if they choose. “It’s important that my employees don’t have to choose health care or groceries,” says CEO Michelle Quist Ryder.
In fact, employers are increasingly making the connection between financial health and mental health. The American Psychological Association’s 2024 Stress in America report found that health, work, and finances are the most common sources of stress among U.S. adults. And one systematic analysis of decades of research, conducted in 2022, found an association between financial stress and depression.
“Sometimes what’s really harming your mental health is that you can’t pay for stuff,” says Quist Ryder. That’s why APF adds a $350 monthly wellness stipend to every employee’s paycheck. Employees are free to use the money however they like. If someone needs it for groceries or a student loan payment or counseling, “it’s up to them to determine what would serve them the best.”
Read More: How Does Mental Health Affect Longevity?
Flexible Workplaces Are Healthy Workplaces
According to a 2024 study of more than 18,000 employed US adults, having a flexible work schedule significantly reduces the odds of stress and anxiety. While many companies have ordered workers back into the office, the best workplaces are prioritizing flexibility and personal time. Ninety-three percent of this year’s Best Workplace honorees offer flexible hours, a 21 percentage point lead over other companies.
Tenure-based sabbaticals, which provide time to recharge, are also a valuable tool for retention. PR and communications agency Just Drive Media, based in Miramar, Florida, employs 14 people full-time and expects upward of $3 million in revenue this year. Employees who have been with the company for five years qualify for a month of paid leave plus a $1,000 stipend. Time and stipend amounts increase every five years. PR is an always-on job, says CEO Ali Winkle: “It can be easy to burn out.”
When First Stop Health introduced its sabbatical program in 2023 (which offers employees with eight years of service a paid, three-month break plus a $2,000 stipend), “the amount of excitement that generated was tremendous,” says Gunlock. “Hands up in the air and ‘wooing.’”
Appreciating Life Outside Of Work
Companies are also emphasizing the value of employee wellbeing outside the workplace. Employees at Media Minefield can opt for a four-day work week if they finish all tasks by Thursday. The PR firm also has a program (called Dream Manager, based on the Matthew Kelly book of the same name) that lets employees set personal goals and gives them flexible hours to achieve them. One employee trained for a marathon and another took up woodworking. CEO Kristi Piehl participated too. She met her goal in April when she graduated from Pepperdine with her master’s in management and leadership.
“It really just is empowering folks to consider all aspects of their life and how it can be integrated into work—as opposed to in conflict with work,” says Piehl.
Focusing on mental health isn’t just about dollars and cents. “I don’t look at my employees and see ROI,” says Quist Ryder at APF. “But it’s my job to be fiscally responsible.” The bottom line, as far as she’s concerned, is that “creating a culture that feeds into a mentally healthy human being is morally correct.”
Still, the return can be calculated, often in productivity, says Gunlock. “If you can get 10 percent more out of your workforce without having to add more people, that is huge.”
For Winkle, the reward is loyalty: “It shows up in the company culture. I think people feel appreciated, and they want to work here.” When emergencies come up, and “a client needs something over the weekend or on a holiday,” adds Winkle, “your team is more likely to want to jump in and do great work for you if you’re also taking good care of them.”
