Supporting mental health before, during, and after leave can improve recovery, foster successful reintegration, and reduce relapse. Discover how employers can develop effective leave policies that enhance workforce well-being and performance.
Every year, more than 2 million employees leave the workforce due to illness or injury.
Many employers know that a strong, supportive leave policy can help give employees the time they need to recover and, ideally, transition successfully back to work.
However, a successful recovery after a leave of absence hinges on more than just paid time off—and mental health plays a far greater role than most leaders realize.
Whether employers realize it or not, leave is intertwined with psychological well-being. Nearly 30% of employees with poor mental health take a leave of absence as a result.
Likewise, in the U.K., 49% of all sick days are due to stress, depression, or anxiety, making it the top reason people miss work due to ill health.
For employees who go on leave for a physical illness or injury, mental health conditions may co-occur, whether due to stress, physical pain, or financial worries. However, not all employees feel their employers support them in taking time off to tend to their psychological needs.
Modern Health’s workforce survey of Gen Z and Millennial employees found that while 85% have taken time off for their mental health, 68% felt guilty about it, worried it would be seen as unproductive, or fearing pressure to “power through.”
And 77% said they’ve worked through a mental health crisis because they felt unable to take a break, underscoring how stigma and workplace pressure still prevent employees from using available support.
That’s why leading organizations are taking a more adaptive approach to employee well-being. Rather than offering mental health support as siloed or leaning on therapy-directed options, they’re building leave programs that evolve with employees’ needs and offer varying levels of support—from proactive coaching to clinical care—depending on the situation.
While mental health affects leave in general, the impact looks different across various types of leave, as we examine below.
Nearly half of cancer survivors experience depression or anxiety during treatment, yet stigma and fear prevents half of employees from disclosing their diagnosis or seeking help. For the roughly one in three cancer survivors that do take extended paid leave, fear of job loss or pressure to return before they’re ready can intensify distress, prolong recovery, and hinder reintegration.
When mental health care is integrated into recovery, employees are better able to heal and return to work successfully—92% of cancer survivors report that workplace support would improve their mental health. By addressing the emotional and psychological dimensions of cancer care and creating psychologically safe cultures, employers can help employees navigate recovery with confidence, not fear.
One in five pregnant or postpartum women experiences a mental health issue, yet fewer than 15% receive treatment. Up to 10% of fathers also experience postpartum depression. The economic impact is significant: untreated maternal mental health conditions cost the U.S. $14.2 billion annually, largely due to lost productivity linked to presenteeism.
It’s equally important to recognize that not all parents experience leave the same way. Nontraditional parents—including adoptive, foster, and LGBTQ+ parents—may face additional stigma, marginalization, or lack of understanding from peers and leadership, all of which can compound stress and make seeking help more difficult.
Inclusive, flexible, and confidential mental health support ensures that all parents—regardless of family structure—have the care they need during this pivotal time.
After nonfatal injuries, 37% of U.S. employees take time off work. Anxiety and mental disorder rates frequently rise during recovery. Research shows that when mental health is addressed, returning to work sooner can support better physical healing, confidence, and social connection.
More than 75% of workers with chronic conditions manage their illness at work, with over half reporting reduced productivity. Sixty-one percent take leave at some point, and many face increased risk of depression due to pain and uncertainty.
One in five caregivers takes a leave or demotion due to caregiving demands. Nearly half experience anxiety, and 40% experience both anxiety and depression. Without mental health support, many struggle upon return—leading to additional absences and lower engagement.
Grief can trigger lasting anxiety or depression, contributing to $75 billion in productivity losses each year. Yet most bereavement policies offer just three to five days off. Mental health support fills this gap—helping employees navigate loss and reengage when ready.
Untreated mental health conditions influence the length of leave, employees’ adjustment upon returning, and the likelihood of requiring additional time off.
Employees with poor mental health miss an average of 5x as many workdays, according to Gallup. Anxiety, in particular, has been shown to extend leave duration. And studies show sick leave due to mental disorders is twice as likely to recur.
While returning to work after leave is linked to better overall well-being, returning without addressing mental health makes employees more likely to experience heightened stress, poor work performance, and relapse, according to research.
Employers who offer adaptive, personalized support throughout the leave process, from preventive care to post-leave reintegration, can help employees sustain progress and reduce the likelihood of recurrence.
Leave represents both a cost driver and an opportunity. Employers typically spend about 1% of total compensation on sick leave—but indirect costs, like absenteeism and presenteeism, drive that number far higher. Combined, work disability costs U.S. employers nearly $260 billion annually in lost productivity.
Incorporating mental health support helps offset these costs. For example, consider:
When mental health benefits are built to adapt by offering care options that match each employee’s needs, employers can see faster recovery, lower turnover, and measurable financial returns.
Incorporating mental health support into a company’s leave policy requires a strategic approach. Effective LOA programs typically involve a structured framework, proactive leadership support, and clear metrics to track outcomes. Let’s take a closer look at each of these elements.
Employees often don’t know what type of care they need. Screening tools and tiered access, ranging from digital programs to coaching and therapy, ensure they can connect with the right level of support at the right time.
Returning unprepared can cause setbacks. Phased schedules, hybrid work options, and stress management tools can help ease the adjustment and reduce the risk of relapse.
Fragmented benefits can derail recovery. Ensure disability, wellness, and mental health programs connect seamlessly. Consider whether:
Take stock of your various benefit programs to identify gaps, overlaps, and opportunities for better coordination.
Managers and HR leaders shape the employee experience before, during, and after leave. Equip them with the right tools and training to recognize distress, support reintegration, and maintain communication boundaries.
Research shows that half of employees request leave directly from their managers, underscoring the importance of preparing managers for these conversations.
When employees reported a positive leave experience, most pointed to supportive managers and clear processes as key drivers. But when the experience went poorly, 40% started looking for a new job—and 1 in 10 didn’t return at all.
Training managers on both the logistics of leave and how to support employees’ mental health before, during, and after their return can prevent turnover, build trust, and sustain engagement.
To build leadership buy-in and optimize results, track both quantitative and qualitative indicators:
Pilot programs and storytelling feedback loops can reveal what works—and help scale success company-wide.
No matter the reason for leave, mental health determines how effectively employees recover, return, and thrive. Investing in comprehensive mental health support before, during, and after leave helps organizations reduce costs, retain talent, and strengthen their workforce.
Whether employees are on leave or returning to work, Modern Health’s adaptive care model meets them where they are.
Connect with our team to explore how a mental health–enabled LOA policy can improve outcomes for your organization.
