Supporting Employee Mental Health Through Your Benefits Strategy

Public sector employers across the country are faced with significant challenges, including rising healthcare costs, tight budgets, staffing shortages, and employee burnout. Amid these challenges, employee mental health has risen to become a top priority for the past few years and for the foreseeable future.

Mental health is connected to everything else going on in a person’s life. In 2025, 39% of HR and benefits leaders cited financial stress as a top-three factor affecting workforce mental health, more than double the prior year. Supporting the mental health needs of those who keep our public sector running is one of the most important things we can do. 

For Arizona school districts, that translates directly into staff who stay, students who benefit from continuity, and a district that spends less time and money managing turnover. Replacing a single teacher costs between $11,860 and nearly $25,000 when you factor in recruiting, onboarding, and lost instructional time.

Benefits, especially mental health, play a HUGE part in keeping these costs down. When staff have access to mental health support they can use, like virtual behavioral health services, teletherapy options, expanded counseling access, and navigation support, it shows. Outcomes improve. People stay longer, engage more, and feel like the district or municipality they work for genuinely cares about their well-being.

The business case for strong mental health benefits is clear. Employers with robust mental health support are 13% more likely to report higher productivity, 17% more likely to see improved employee engagement, and 10% more likely to achieve a measurable return on investment compared to those with weaker programs. Taking care of your people is also taking care of your budget.

The good news is that public sector employers already have mental health tools in place. Almost every public sector employer offers their employees access to an Employee Assistance Program (EAP) i.e., access to counseling, financial coaching, legal support, and more. But is that enough? Research shows traditional EAPs see less than 5% utilization across most workforces. In many cases, employees either do not understand the services available to them or encounter barriers that discourage engagement. 

Thankfully, closing that gap does not require a bigger budget. It often just requires better communication and making sure these tools are visible, accessible, and built into a benefits strategy that works for real people with real lives. 

What a Strong Mental Health Benefits Strategy Actually Looks Like

 

A strong benefits strategy that genuinely supports employee mental health goes a little deeper than checking an “EAP” box. Here are some tips that make a difference.

Make benefits valuable and visible

Evaluate whether your current programs are valuable and aligned with employee needs. If a staff member had a tough week and needed someone to talk to tonight, would they know where to turn or who to contact? Mental health resources and information should be included in onboarding packets, on the benefits portal, in regular staff communications, and visible in shared spaces like employee lounges and bathrooms. The more places it appears, the more likely it is to reach someone. 

Ensure benefits are affordable

Review copays, out-of-pocket costs, and network adequacy to help ensure your employees can realistically utilize their mental health resources. Even the most well-designed and intentioned benefits go underutilized if employees perceive care as too expensive.

Look at your behavioral health network

Coverage on paper only helps if staff can actually get an appointment. When reviewing your plan, take a close look at how many in-network behavioral health providers are accepting new patients within a reasonable distance of where your staff lives and works. 

For example, in rural Arizona communities, options are slim. Telehealth has helped close that gap significantly, and making sure virtual behavioral health access is included is worthy of a conversation at renewal time.

Think holistically – and beyond. 

Benefits that address contributors to stress, like financial wellness benefits, are equally important as traditional mental health benefits like counseling. Flexible spending accounts, health savings accounts, supplemental life coverage, and voluntary coverages such as accident, identity theft, and legal assistance give employees a more complete support system. 

Create a supportive culture

Employee Benefit News noted that the most effective mental health strategies heading into 2026 are the ones woven naturally into broader wellness efforts rather than positioned as a last resort. Culture shifts when communication does. When HR teams talk about mental health resources the same way they talk about dental or vision, when leaders share wellness information openly and regularly, and when benefits communication treats emotional wellbeing as a normal part of staying healthy, staff take notice.

If you want to take stock of where your current benefits stand on mental health support, and how your employees are engaging (or not) with them, start with these exercises:

• Gather employee feedback via surveys, focus groups, and listening sessions to better understand what employees actually need and value 
• Review and analyze EAP utilization, behavioral health claims trends, absenteeism, and employee feedback to identify gaps and opportunities for improvement.
• Review and boost communication efforts. Consider monthly reminders, wellness spotlights, supervisor talking points, and internal campaigns throughout the year.
• Evaluate your voluntary benefits offering. Consider additional benefits if your current offering does not cover supporting employee financial stress needs.

How VSMG Helps Arizona Public Employers Take Care of Their People

 

Building a benefits strategy that genuinely supports staff wellbeing takes more than good intentions. It takes a partner who understands the specific needs of Arizona public sector employers. At VSMG, we partner with school districts and municipalities to deliver a benefits program and strategy that serves and supports employees’ individual health, while boosting employee recruitment and retention efforts. As a nonprofit consultant working exclusively with public sector employers, our only focus is on what is best for your workforce and your community.

If you are ready to take a closer look at how your benefits are supporting your staff, contact VSMG today at 623-594-4370. We would love to help.

About VSMG

Built by and for Arizona public sector employers, VSMG is a leading employee benefits consultant, dedicated exclusively to serving the needs of Arizona’s school districts, municipalities, and other public entities for over 21 years. We are the largest provider of employee benefits consulting services to Arizona school districts, serving over 40,000 benefit-eligible employee lives, and the only nonprofit consultant offering these services.