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How to Develop an Effective Mental Health Strategy for Your Employees

Mental Health in the Workplace

10 Oct 2022 (Last updated 3 Sept 2025)

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Mental health at work is coming more sharply into focus, as employers understand more acutely the stressors many of their workers face — and how those stressors ultimately affect their company as a whole. And while many employers have dealt with employees in a piecemeal fashion, the pandemic illustrated the necessity for an organisation-wide mental health strategy.

Mental health concerns or mental health problems are not new, they have just been ignored previously. It is the shifting dynamic of the workplace and the rising need for a safe and healthy workplace that is bringing this issue to the forefront. To specifically create an environment where people feel included, supported, and heard you need to devise a mental health strategy.

Workplace mental health

Employers have a duty of care to employees. This means evidently supporting employees and creating a safe working environment for them. Beyond the legal obligation, employees struggling with multiple stressors or mental health problems are more likely to be less productive, which can hurt overall morale and your bottom line. If your workplace is a positive and wellbeing focused workplace, it can also act as a potential employee engagement tool.

Prioritising workplace mental health and wellbeing needs to be a daily focus for employers, particularly for small business owners. Recent events have highlighted the varied mental health conditions affecting staff and workers.

In a short span, many employees have faced issues such as:

  • Struggling with the social isolation accompanying remote work
  • Facing increased childcare responsibilities
  • Grieving the loss of loved ones
  • Wrestling with illness
  • Dealing with financial stresses
  • Coping with broad anxieties about the future

Why do you need a mental health strategy?

A mental health strategy is a plan that is an inclusive document and resource to build a safe and healthy workplace. Having a mental health strategy can support the mental wellbeing of your staff and workers. Good mental health strategies will also include coaching and resources for supervisors or business owners to tackle mental health at work and identify people struggling with mental illness.

So how can you develop an effective mental health strategy?

Start with your leadership       

It’s critically important that you discuss with and gain commitments from your leadership team first before you do anything else. One of the quickest ways to torpedo your mental health program is for managers and departments not to provide the support you’ve promised. Or worse yet — for a manager to ridicule and shame those seeking help. Instead, you must not only make mental health a priority for your managers; you must make sure that your managers themselves are not engaging in behaviours that could harm employee mental health.

Heard those rumours that one of your managers yells at their staffers so much that some of them leave work crying? These are sort of issues you should address immediately. Identify a small group of managers along with a cross-section of employees from different departments to form a working committee, who can lead this work internally. Not only can you not do all the necessary work yourself, but you need to obtain buy-in from all levels of the organisation. Your leadership should believe wholeheartedly in promoting good mental health at work.

Build trust with your staff

A single employee sharing a story with their co-workers of how one of your managers was not receptive or hostile when they reached out can be enough to destroy the faith and trust of your employees in your strategy. To be effective, you’ll need employees to feel comfortable that your effort is genuine and thoughtful, and that starts with a process that heavily incorporates their feedback. When you launch your program, non-supervisory employees who participated directly in its design may be among your biggest internal champions of the program and help encourage struggling employees to take advantage of it.

Identify what your problems are and assess your needs

There’s no one-size-fits all mental health strategy for business. Instead, you need to develop one that is grounded in your unique needs.

  • To identify your needs, start by reviewing existing employee wellness and other relevant strategies to see what you already have in place. Perhaps there is a program you started years ago which no one uses. Or maybe you have some online training modules of which employees are unaware. Before you begin to design an entirely new program, you should see if there are existing strategies and resources which could be useful if you refined and expanded them.
  • Next, you should take a look at pertinent HR data, such as formal employee complaints, disciplinary records, and exit interviews. This information can give you some real insight into employee needs, as well as potential problem areas that may require remediation.
  • Also, take a look at reviews left by former employees on employee review sites, such as JobAdvisor, to better understand if there are elements of your organisational culture that may support or undermine employee mental health.
  • Finally, you should obtain direct feedback from your employees about their mental health needs. Consider the use of anonymous surveys so that employees can feel comfortable expressing how they truly feel and multiple internal focus groups of employees. It’s often best to find an outside facilitator to gather this kind of feedback, as facilitation by managers or HR staff may make employees hesitant to be honest about their needs.

Design Your Program

Once you’ve identified your organisational needs, you should list them in order of importance and impact. Those which affect the broadest number of employees, have the most acute impact on employee well-being, and have the most measurable effect on organisational metrics should be ranked highest. Review this list with your internal working committee and condense the list to the three to five most pressing and actionable items. Develop a list of goals you want your program to achieve that addresses these goals and set a measurable timeframe to assess success.

When you’ve solidified your goals, work with your working committee and HR department to develop an action plan to achieve each of these goals. Your action plan should include elements that promote positive mental health steps, safeguard employees from harm in the workplace, support those who request help, and outreach to those employees identified as struggling. Include short-term and long-term goals and action steps. Your short-term goals should address all particularly acute problems over a defined period, while your long-term strategy should involve the establishment of ongoing practices and resources that benefit your employees.

Your action plan must also be integrated with your business and workplace. As you design it, take a look at every facet of your operations and see if there are opportunities to build links with your mental health program. For example, if the staff of one department reported that a source of stress was job security because they were isolated off from the rest of your organisation, find ways to fold them into broader organisational activities. Also, make sure all incoming employees are thoroughly trained on your business’ mental health programs and staff/managerial expectations regarding employee wellness.

Lastly, incorporate firm assessment measures to measure the successes (and problem areas of your program). These measures should be performed at regular intervals consistently. Use the data to refine your mental health program over time to ensure it continues to meet the ever-evolving needs of your workforce.

Suggestions

Below are some suggestions for mental health strategies you can try to implement:

  • Anonymous employee support hotline: where employees can call at anytime to discuss work issues and stresses or non-work-related issues
  • Mental health workshops with a third party host: to go over stress coping techniques and awareness
  • Ensuring employees know and are comfortable taking personal leave for mental health days
  • Providing employees with an additional day off as a mental health day that they can take whenever they want
  • Training for managers to understand the signs of mental health struggles or stress and how to have those conversations

Mental health strategies

Mental health strategies are obviously not a magical solution to supporting mental illness or mental health at work. Creating a culture that reduces stigma around mental illness and building a mentally healthy workplace generally requires time and efforts. The goal for any mental health plan or strategy should remain increasing awareness about mental illness in the workplace, reducing discrimination to those suffering from mental health problems, and offering resources to anyone at the workplace.

How can Peninsula help you?

Peninsula has worked with 30,000 business owners across Australia and New Zealand. We understand the importance of workplace relations and work health and safety. Call our 24/7 Advice Line today to get all your questions answered.

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Mental Health in the Workplace

R U OK? Day 2025

R U OK? The three-word question and ten-minute chat that could change somebody’s life. Each year on the second Thursday in September is National R U OK? Day. This day is dedicated to reminding everyone that every day is the day to ask, ‘Are you OK?” History In 2009, founder Gavin Larkin wanted to ask one question, ‘Are you okay?’ to honour his father and try to prevent and protect other families from the pain of losing someone to suicide. He collaborated with Janina Nearn on a documentary to raise awareness, but they felt it wouldn’t be enough. To impact and change behaviour, a national campaign was needed. With this realisation, the idea of R U OK? Day was born. This movement is aimed at offering Australians skills and confidence to support those struggling with their mental health or feeling overwhelmed. Break down workplace barriers What can you do? R U OK Day is about everyone feeling heard and supported, including small business owners. 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If you see someone battling, don’t wait for them to speak up – take the initiative yourself. R U OK? has developed four conversation steps to give you the skills and confidence to navigate a conversation with someone you're worried about. Ask Listen Encourage action Check in Handling a sensitive subject If you decide to start a conversation with a co-worker, be sure to handle the situation delicately. For many people, mental health can be a sensitive subject. Here are some tips that can help the conversation go smoothly: The right time and place: Choose a time and place where you will not be interrupted and the person feels comfortable talking. A private office or quiet coffee shop may be good options. Ask the question: The best way to start a mental health conversation is to be direct and ask, “Are you okay?”. This shows the person you are concerned about them and you’re open to talking about mental health. 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Mental Health in the Workplace

What is an Employee Assistance Program (EAP)?

An Employee Assistance Program – more broadly known as EAP – is offered by employers to help employees, and often their immediate family members, maintain or improve their mental health and wellbeing. An EAP program is designed to help individuals address a range of personal and work-related issues. It offers a safe, non-judgemental, and confidential counselling service focused on providing mental health and wellbeing support from qualified counsellors. An employee struggling with situations such as a relationship breakdown, financial stress, family violence, depression and anxiety, loss of a loved one, gambling, alcohol or substance addiction. You may be unaware an employee is silently dealing with one of these life challenges until it impacts their work performance or attendance. What are the business benefits of EAP services? As a small to medium sized business owner or manager you have first-hand experience of the challenge of attracting and retaining high performing employees. 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Some employees may be referred to for specialised or long-term support if needed. The cost of mental health to business It's often thought mental health challenges affect employees in large corporations in high-pressure, high-stress roles working long hours, or are in specific industries such as healthcare or the legal profession. In reality, SMBs are often more vulnerable to the financial and operational impact of mental health issues. Absenteeism, reduced productivity, and increased workplace health and safety compensation claims as well as high staff turnover is costly for small businesses. According to Safe Work Australia, the median compensation paid for mental health conditions in Australia in 2022-23 was $65,402. The median time lost from work in these cases is more than 5 times that recorded across all injuries/diseases. As a small to medium sized business owner the impact of poor mental health is substantial as you have fewer staff to cover for absent colleagues. 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Mental Health in the Workplace

Who’s Caring for the Carers? Healthcare’s Frontline Mental Health Problem

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They may also have to deal with demanding patients and family members.  Exposure to trauma: Frontline healthcare workers may be exposed to trauma on a regular basis. This could include seeing patients die, witnessing violence, or treating victims of accidents or natural disasters.  Lack of support: Frontline healthcare workers may feel like they don’t have enough support from their employers or colleagues. This can make it difficult to cope with the demands of their job.  The impact of mental health problems in frontline healthcare  Frontline healthcare worker mental health has been gaining attention as a major public health concern in recent years.   As well as posing a risk to the well-being of workers themselves, poor mental health can threaten the quality of care. 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Mental Health in the Workplace

The Mental Health Crisis in the Construction Industry

The Australian construction industry employs more than 1.37 million people making it one of the biggest employers in the country. Data from MATES in Construction has shown that construction workers are eight times more likely to die from suicide than an accident at work. A further 1 in 4 workers are known to have high symptoms of depression or anxiety. Why is the health and safety of construction employees drastically affected? What factors are contributing to a rapidly worsening mental health crisis? What can businesses do to create mentally healthy workplaces? Stigma around mental health There has been a stigma and reluctance to approach mental health in the building and construction industry. Admitting to mental health challenges or discussing workplace mental health came with negative repercussions and a lack of support. Rates of help-seeking tend to be low in male-dominated industries like construction. Construction workers will prefer being self-reliant and avoid talking about their emotions or feelings. This can create barriers to getting help and support. While the stigma still exists, efforts have been made to destigmatize mental health conversations. Many organisations have been leading research-backed conversations around the topic. Black Dog Institute emphasises the need for a honest and supportive culture in construction. Leaders who are more confident and engage in mentally healthy workplace practices such as communication and transparency can see positive results in the long-term. Factors affecting mental health in construction The inherent nature of the building and construction industry is fraught with complications. A job that requires employees to be present 6-7 days a week and work long hours doesn’t really make for a recipe for good mental health. The work environment may change every single day and this change can be difficult to cope with. Construction management also prefers giving lump-sum, fixed-time contracts which can increase the pressure around getting the job done. The risks of workplace accidents and injuries impact work health and safety of employees. Workers also feel their mental wellbeing takes a hit since they can’t spend a lot of time with their families and loved ones. They miss important events and moments creating a sense of emotional detachment and loneliness. Mental health issues are further exacerbated by the toxic and masculine culture of the construction industry. Being vulnerable leads you to potentially being mocked or bullied. The lack of support and training around mental health awareness also forces workers and staff to potentially indulge in substance abuse, alcohol, drugs or gambling. Lastly, banter among workmates in the male dominated industry can sometimes cross the line- it can turn into bullying. This is an issue most apprentices experience in most cases. Job security is a huge issue among construction workers. With most projects being transient, workers have to work on a project-by-project basis. While some projects can continue for years, others last a few weeks. Workers with dependants to feed and bills to pay often have to worry about whether they will get another project to help sustain themselves. Most clients are typically looking to cut the cost of their construction projects. This bid to cut the cost often trickles down to the workers’ paycheque. If a company doesn’t bid low, the chances are that they might lose the project to a competitor. Unlike a good portion of self-employed workers, those working under specific companies tend to enjoy some form of protection from these issues. The companies work overtime to cater to the rights of their workforce. However, this protection isn’t always guaranteed to the construction subcontractors. Changing the mental health narrative Construction businesses and employers need to overhaul their workplaces and work culture. They must create an environment where construction workers can speak up about their struggles to the mates they trust and get the support they need. If possible, these companies can provide departments for counselling their employees and focus on building a mentally healthy workplace. Educate your staff- Changing the narrative requires awareness and education. A mentally healthy workplace is where you create a safe zone for your employees and tell them it’s okay to not be okay. Offer resources and support- What do your employees need to work towards better mental health? What do they lack? Is it time off, or flexibility, training or support in mental wellbeing? Collaborate with experts- A lot of organisations are working towards improving mental health and suicide prevention. Programs like the Mates in Construction are created for this specific purpose. Such companies can provide invaluable insights and resources on how to approach the mental health problems among any workforce. The mental health training will arm workers with the skill to identify a colleague that is struggling and speak to them. This can be especially helpful for people who struggle to reach out. Mental Health Policy- The mental health of your workers determines the success and efficiency of your business. Having a mental health policy that establishes expectations, behaviours, and promotes wellbeing of staff can go a long way in protecting you and your staff. Consider flexibility- Traditionally, the construction industry has been hesitant to consider flexibility as an option. Studies around a 5-day working week for construction workers have shown negligible costs to employers, greater productivity, engaged employees, and organised worksites. Men are less fatigued and more engaged because they get valuable time off and opportunities to rest and recover which leads to better mental health. Work-life balance- For a long time, the construction industry has thrived on hustling and working extremely long hours while sacrificing mental health and wellbeing. Slowly we are taking a step back and questioning the way things have been. Reduced work hours improved the mood and general wellbeing of employees, leading to strong mental health. Peer Support- Encourage your staff to keep in contact with an affected worker or someone impacted by mental illness at work. They can visit them at home, message or call to check-in. This will help the worker feel they are loved and wanted at the workplace. Return to Work Plan- If a worker is returning to work after a sabbatical or a break due to mental illness, develop a suitable return to work plan. This should include easing them in slowly and inform their team members so they understand what is expected and can support the worker effectively. Build healthy workplaces with Peninsula Peninsula has worked with construction businesses and employers, empowering them through effective HR and sturdy WHS policies. Our team provides customised advice and resources that ensure you are meeting your obligations and creating a safe space for your employees. Whether it is building good HR practices or implementing mental well-being policies, Peninsula can help you. Call us on 1300789186 today. This document is intended to act as general information. If you need help, please contact a qualified medical professional. Beyond Blue: 1300 224 636 Lifeline: 13 11 14

Mental Health in the Workplace

Stressed at Work? Have a Laugh!

The biggest trigger to impact workplaces in Australia is stress. Job insecurity, changing socio-cultural landscape, and the rising cost of living is affecting employees tremendously. Employees are feeling the pressure and it's leading to stress. Stress causes tension between staff and is a major health concern for those feeling the strain. Some triggers of stress include: Job insecurity Work overload Organisational change Conflict with manager or colleagues Bullying and harassment Understanding stress Stress is not an injury or illness, however long-lasting stress can have a negative effect on employee health and well-being. Work-related stress is recognised globally as a major health and safety hazard. Employers need to be proactive in identifying stress related hazards and create safe and supportive workplaces for all. Ways to alleviate workplace stress Here are the best ways to alleviate stress in your workplace: Make lists and prioritise – commit to one task at a time; Practise saying no – when we say yes to work we feel accepted by other people, you can say no to unreasonable requests; Don’t take everything personally – be aware that others feel stress too and stressed people behave uncharacteristically and unkindly.  Stress also makes you sensitive, be mindful of this when responding to others requests; Partake in relaxation and exercise – release happy endorphins and take time to reflect and let go of stressors; Stress reduction techniques – write down when you’re most stressed, identify the environments or elements that create stress. Identifying them will help you to avoid them; Have a laugh every now and again! Did you know that laughter helps alleviate stress? It is known to strengthen the immune system, relax tense muscles, reduce high blood pressure and reduce the production of stress hormones. Do you have laughter in your workplace? Employers, if you invest time on alleviating stress and focus on ensuring your staffs well-being, you can expect higher productivity, less absenteeism and a better work culture. Create healthy workplaces with Peninsula Peninsula can help employers to become aware of policies and procedures to protect the well-being of staff so stress can be prevented in the workplace. If any of your employees are stressed and you need to review your employment policies or procedures fill out the form below or call Peninsula on 1300789186 today.

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