Employers Expand Mental Health Support to Combat ‘Burnout’

Companies are focused on expanding their mental health and support systems for employees, based in part on workers’ demands for improved work-life balance and attention to their needs outside of the workplace, according to NFP’s annual U.S. benefits trend report.

The findings showed that, despite rising health care costs, employers are still committed to benefits in which employees find high value. In a survey of about 515 benefit decisionmakers, 43% said they increased spending on health benefits last year, and only 4% noted that they reduced spending.

NFP Corp., an Aon company with businesses that include workplace retirement plan advisement, sees the expansion of health benefits happening in three areas—with varying levels of effectiveness.

Mental Health

First, according to the survey data, employers are focused on pediatric and dependent-children mental health services, which are “helping parents manage their children’s mental health needs while maintaining workplace productivity.”

NFP noted that childcare benefit service platforms such as Torchlight (from LifeSpeak Inc.) are popular with employers; that service includes expert advice on managing childcare needs and finding services.

Second, the consultancy identified a shift toward the integration of mental health support into “condition management platforms,” which NFP sees as a concern. For example, a firm might incorporate counseling into cancer care or cognitive behavioral therapy into fertility programs to save on costs.

“With nearly 25% of adults and 20% of teens experiencing mental health conditions, and with substance use disorders on the rise, mental health demands dedicated attention and resources,” NFP researchers wrote in the report. “While integrated support can be valuable, it shouldn’t replace comprehensive, stand-alone mental health solutions.”

Third, NFP found that organizations are facing a “care gap” in terms of helping workers manage through burnout due to stresses in the workplace and at home.

“Unlike clinical mental health conditions, burnout is not found in the DSM or recognized with a current procedural terminology code—it’s a condition created by and best addressed through workplace environment and culture interventions,” researchers wrote.

When it comes to workplace stressors, NFP found that, after compensation, the second-most flagged area was “too heavy of a workload/never-ending to-do list.”
The third-highest stressor was co-workers, and the fourth was lack of reward or lack of recognition for work.

Sandwich Generation

NFP’s report also found an expanded employer focus on helping workers who are part of the “sandwich generation”—those assisting both children and aging parents.

“Organizations are responding with comprehensive support strategies that go beyond basic flexibility,” the researcher found.

That support is coming in the form of access to resources such as financial counseling to help navigate the varying caregiving needs; elder care information and resources; and concierge tools to help with total caregiving management.

“These comprehensive support systems are mutually beneficial in that they help reduce the mental and emotional burden on caregivers while maintaining workplace engagement and productivity,” NFP’s benefits team wrote. “As digital platforms provide secure, centralized storage for caregiving notes, appointments and documentation, they allow family caregivers to collaboratively manage care responsibilities.”

The majority of employees appear to be acknowledging this push, though the numbers have room for growth. Among those surveyed, 71% of employees said they believe their employers understand the importance of work-life balance and understand their needs outside of work. Another 68% believe their employer cares about their professional development and wants them to grow into new roles.

The 2025 NFP US Benefits Trend Report drew on data from NFP’s 2024 Benefits Trends Employer Survey of 515 benefit decisionmakers and 1,011 employees, conducted in October 2024 in partnership with EmpatiX.