Reimagining mental health support: A retention strategy that works
Why mental health benefits are no longer optional
Workplace stress is at an all-time high—mental health-related leaves of absence have surged by 300% since 2017.1
At New York Life Group Benefit Solutions (NYL GBS), we know that meaningful mental health leave isn’t just good for employees—it’s a business advantage. Our research shows employees want more support, more flexibility, and fewer barriers when caring for their mental and emotional well-being.
The business case: Mental health support = retention
Employees increasingly view mental health benefits as a make-or-break factor in job decisions:
- Nearly half of workers report being stressed.2
- 60% of Gen Z and 55% of Millennials would change jobs for better mental health support.2
- 39% say access to mental health leave would influence their decision to stay.3
What employees say they actually want
Employees are looking for benefits that meet real-life needs, not general promises. In our research, employees indicated that the most helpful policies and benefits that would best support their mental health include:
- Extended mental health leave: To handle clinical diagnoses such as depression or anxiety. An industry best practice is to offer a mix of paid/unpaid time, with documentation required.
- Mental health days: Up to five paid, no-questions-asked days for stress relief and proactive wellness. No documentation required.
- Caregiver mental health leave: Time off and job flexibility for those employees supporting loved ones with mental health challenges.
- Mental health treatment days: Time for therapy, medication adjustments, or short-term care needs.
Paid time is critical. Nearly 80% of employees say they’re more likely to use leave if it’s paid. This is especially true for younger workers, who also cite stigma, fear of retribution, and lack of PTO as barriers to accessing treatment for their mental health challenges. Paid leave not only signals employer support—it removes the top obstacle to access.
But it’s not just about offering time off. True impact comes from creating a culture of care—where mental health support is embedded in policies, practices, and leadership behaviors.
Employers who take a thoughtful, structured approach can make their mental health benefits more meaningful, equitable, and effective. Here are four ways to strengthen your strategy:
1. Assess your current programs
Start with a clear picture of where you are today. Benchmark your offerings against peers to understand what’s competitive in your industry, and survey employees to identify what they value most. Combining market data with employee feedback helps ensure your mental health benefits are both relevant and impactful.
2. Bundle leave types for greater impact
Combine different types of mental health leave—such as sick days, treatment time, and informal personal days—to create a more flexible and inclusive program. A bundled approach meets a wider range of needs and helps ensure equity across roles and demographics, reinforcing that every employee’s well-being matters.
3. Empower and model through leadership
Equip managers to talk about mental health with empathy and confidence, and encourage leaders to set the tone by using and promoting these benefits themselves. Visible leadership support and open communication help normalize mental health leave and drive real culture change.
4. Support employees throughout the leave journey
Make the leave experience seamless from start to finish. Protect employee privacy, plan for coverage to reduce strain on teams, and offer flexible return-to-work options like phased reintegration or accommodations. A thoughtful approach ensures employees feel supported—not stressed—before, during, and after their leave.
The bottom line
When employers invest in thoughtful, inclusive mental health benefits, the results speak for themselves. Supporting mental health isn’t a “nice-to-have”—it’s a proven retention strategy and a driver of business results. Organizations with strong mental health benefits report:
- 88% positive ROI2
- 96% higher productivity2
- 88% higher engagement in the workplace2
With the right strategy, your company can become a destination for top talent—while showing employees you value their well-being.
Let us help you design a mental health leave program that supports your people and your business. Contact us
1ComPsych Mental Health Study 2024, Mental Health Leaves of Absence Surge, Increasing 33% Over Prior Year - ComPsych.
2Lyra 2025 State of Workforce Mental Health Report, 2025, https://www.lyrahealth.com/2025-state-of-workforce-mental-health-report/.
3NYL GBS Leave Solutions Product Research, 2024.
New York Life Group Benefit Solutions products and services are provided by Life Insurance Company of North America, New York Life Group Insurance Company of NY, and New York Life Insurance and Annuity Corporation, subsidiaries of New York Life Insurance Company. Life Insurance Company of North America is not authorized in NY and does not conduct business in NY.