Companies Scaling Back Mental Health Benefits Despite Employee Prioritization

The pandemic has highlighted the need for employer-provided mental health benefits, and in 2021 employees are using these benefits more than ever before. A survey by Headspace, a meditation app, found that 66% of employees are using mental health solutions offered by employers, up 14% from last year.

Employees are also prioritizing these benefits on a higher scale. In 2021, mental health benefits broke into the top 3 employer-provided benefits that job applicants would look for when considering a new position. 45% of employees want more access to mental health services through their employer-sponsored health plans, according to a Marathon Health survey.

Despite these findings, some employers are scaling back mental health benefits and programs, some due to cost, some due to changes in their company’s performance necessitating cuts. In a 2021 survey, 47% of employees surveyed said their organizations have been providing mental health programming, services, or benefits, down from 54% in 2020. Headspace survey respondents also rated fewer of their employer-based mental health “solutions” as excellent or very good.