Mental Health as a KPI: Why It Matters for Businesses

March 11, 2025

Mental Health Is a Business Priority

For years, companies have tracked key performance indicators (KPIs) like revenue, productivity, and customer satisfaction. However, one crucial factor that directly impacts these numbers is often overlooked: employee mental health. Stress, burnout, and disengagement have become major challenges in today's fast-paced work environment. Treating mental health as a KPI can help businesses create a thriving workforce, reduce turnover, and enhance overall performance.

Why Mental Health Should Be a Business KPI

Mental health isn’t just a personal issue—it’s a workplace issue. When employees struggle with stress, anxiety, or burnout, their productivity and engagement suffer. Poor mental health leads to higher absenteeism, more errors, and lower overall morale. Measuring and addressing mental health as a KPI ensures that businesses stay proactive rather than reactive.

Key Benefits of Mental Health as a KPI

  1. Increased Productivity: Employees with strong mental health are more focused, efficient, and motivated.
  2. Lower Absenteeism: Mental health challenges contribute to missed workdays, which impact company operations.
  3. Reduced Turnover: Burnout and stress drive employees to leave jobs. Prioritizing mental health can improve retention.
  4. Stronger Workplace Culture: Employees perform better in environments that support their well-being.
  5. Higher Engagement and Creativity: Employees who feel mentally well are more engaged and innovative.

How to Measure Mental Health as a KPI

Tracking mental health isn’t as straightforward as measuring sales or profit, but it can still be done effectively. Here are key ways to measure it:

1. Employee Surveys and Feedback

Regularly surveying employees about their stress levels, workload, and well-being provides insight into overall mental health trends. Use anonymous surveys to encourage honest responses.

2. Absenteeism and Presenteeism Rates

Track sick days and unplanned absences related to mental health issues. Also, monitor presenteeism—when employees show up but are too mentally exhausted to perform well.

3. Employee Turnover and Retention Rates

If employees are frequently leaving due to stress or burnout, it’s a clear indicator that mental health needs attention. Monitoring retention rates can highlight areas for improvement.

4. Productivity and Performance Metrics

Review performance indicators, such as missed deadlines, error rates, and overall efficiency. If mental health is declining, these numbers may start slipping as well.

5. Utilization of Mental Health Resources

Monitor how often employees access mental health benefits, such as therapy, Employee Assistance Programs (EAPs), or wellness initiatives. Low engagement may indicate stigma or lack of awareness.

Strategies to Improve Mental Health in the Workplace

Once mental health is measured as a KPI, businesses must take action to improve it. Here’s how:

1. Normalize Mental Health Conversations

Leadership should openly discuss mental health, reducing stigma and encouraging employees to seek help when needed.

2. Implement Flexible Work Policies

Remote work, flexible hours, and mental health days allow employees to balance their well-being and job responsibilities more effectively.

3. Provide Access to Mental Health Support

Offer comprehensive benefits that include therapy, coaching, and mental health resources. Services like Tava Health make it easier for employees to get professional support.

4. Train Managers on Mental Health Awareness

Supervisors should be trained to recognize burnout and support employees with compassion and appropriate resources.

5. Encourage Regular Breaks and Downtime

Establish policies that promote taking breaks, vacations, and personal time to recharge.

A Business That Cares, Thrives

Prioritizing mental health as a KPI isn’t just a trend—it’s a necessity. Businesses that invest in employee well-being see better performance, stronger teams, and greater long-term success. By actively measuring and improving mental health in the workplace, companies create an environment where employees don’t just survive—they thrive.

See How Tava Health Helps

See how Tava can help you increase retention, lower medical costs, and boost your culture. Our friendly platform easily plugs into all major HRIS tools as well as insurance carriers.
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