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The global mental health crisis is escalating, including in the workplace. Employees increasingly report high levels of stress, anxiety and depression, detrimental not only to their quality of life but also to employee retention, performance and productivity.

Globally, around 12 billion working days are lost each year to depression and anxiety, to the tune of $1 trillion. Meanwhile, looking through a more regional lens, a 2023 McKinsey report revealed that burnout in the GCC is now higher than the global average, with one in three survey respondents suffering from the occupational phenomenon.

Further, the report found that workers in the GCC were more than twice as likely to consider leaving their jobs than their international counterparts.

Against this backdrop, mental health support emerges as a strategic priority for business leaders.

On World Mental Health Day, ESG Mena asks the experts about navigating mental health challenges in the workplace and the practical steps towards creating a supportive environment for employees.

Stress and Burnout Become Increasingly Prevalent

The World Health Organization (WHO) outlines that workplace culture has a significant role in shaping employee mental health, with key risk factors for poor mental health including everything from the underutilisation of skills and excessive workload to understaffing and job insecurity.

According to SOS International data, over the past two years, depression, panic disorder, and acute stress were among the top five mental health assistance requests it received, adding that burnout has also become a prominent problem among employees, with one in four employees worldwide reporting symptoms.

Therapist Marisa Peer said that in a nonstop, 24/7 world, people find themselves “bombarded” with messages pressuring them to “do more and be more.” As a result, one of the most common mental health challenges employees face is stress, stemming from juggling multiple and competing priorities, striving to meet tight deadlines, and the pressure to perform constantly and consistently, she said.

“So, it’s no surprise that this stress of performing can also lead to burnout, particularly when employees feel overworked, undervalued, or lack a sense of control,” added Peer.

According to Peer, as the financial crisis grips the world and AI increasingly integrates itself into the workplace, there is also a growing sense of anxiety around job security.

“Fuelling that fear of failure and the pressure to be constantly “on it” can create a toxic cycle of worry that affects performance and wellbeing,” she said.

Meanwhile, Jan Gerber, CEO of Paracelsus Recovery, notes that excessive workplace stress accounts for over 120,000 deaths each year, which he said is exacerbated by global issues such as wars, pandemics, and cost-of-living crises.

Neglecting Mental Health Has Far-Reaching Consequences

Despite employees facing multiplying challenges, discussing mental health remains, for the large part, taboo in workplaces around the world.

However, workplace failure to create a supportive environment for these discussions has vast consequences.

“Sadly, employees often struggle in silence because they fear that if they speak up, they will be judged or seen as weak. But the reality is when you push yourself without addressing these feelings, your mind and body will eventually push back, manifesting as anxiety, depression, or even physical illness,” Peer warned.

Alongside these devastating consequences, poor mental health negatively impacts productivity, creativity, and overall job performance.

“When people feel unsupported, they disengage, so companies that neglect mental health miss out on the true potential of their workforce.

The costs of which—both human and financial—can be enormous,” said Peer, noting that, in the workplace, this can manifest as high turnover, absenteeism, reduced efficiency, and even financial losses.

A Positive Work Environment Essential for Mental Wellbeing

By contrast, Gerber outlines that a ‘positive work environment’ refers to a culture where employees feel “supported, seen, and safe.”

“This means creating a sense of psychological safety—ensuring employees feel comfortable making mistakes, occasionally underperforming, and asking for help without fear of punishment,” the CEO said, outlining that numerous studies have shown that focusing on psychological safety helps relax our nervous systems and boost feel-good neurochemicals: “Both of which benefit the workplace,” he added.

According to Gerber, one study found that companies prioritising psychological safety saw a 50 per cent increase in productivity and a 40 per cent decrease in burnout rates.

Indeed, Adel bin Hidaya Al Falasi, a mental health advocate and podcaster, noted that a positive work environment not only reduces stress and improves productivity but also creates a sense of belonging and appreciation.

This was echoed by Peer: “A positive work environment is essential for mental wellbeing because it fosters a sense of security, belonging and respect, making employees more prosperous, creative and productive.”

Putting the Building Blocks in Place

Al Falasi said this “positive environment” is achieved by providing channels of psychological support for employees, encouraging greater work-life balance, and providing opportunities for personal and professional development—and this requires investment.

Indeed, Al Falasi urged that employers must provide mental health support programmes, such as counselling and stress management training, creating an environment that enables employees to communicate without fear of stigma. However, he notes that in the Arab region, the tide is beginning to change.

“In the Arab region, there has been increasing interest in mental health in the workplace, and governments and companies are becoming aware of the importance of mental health in the workplace,” said Al Falasi.

This kind of advice mirrors WHO guidelines, which outline that workplaces must create an environment conducive to healthy work, protecting and promoting mental health through various measures, from flexible work arrangements to frameworks for dealing with violence and harassment at work.

Organisations are also recommended to train managers on mental health to recognise the signs of emotional distress in employees and implement additional measures, such as flexible working hours, modifying tasks to reduce stress, and creating return-to-work programs after mental health-related absences.

“One of the most powerful things an employer can do is foster an environment of open communication where employees feel safe talking about their mental health without fear of stigma,” said Peer.

“Leadership should model this healthy behaviour by setting clear boundaries and showing that it’s okay to prioritise mental health,” she added, noting that access to mental health resources is essential, including counselling services, mental health days, and wellness programs focused on stress management, mindfulness, and fitness.

She added that employers can check the effectiveness of their mental health support programs through anonymous surveys and open communication between leadership and employees to create a culture where wellbeing is part of the fabric of the company.

Indeed, Jan Gerber also shared that one of the key facets of a mentally healthy workplace is “transparency,” where clear and honest dialogue is encouraged. He also underlined the importance of team-building activities that foster collaboration and flexible work arrangements, allowing employees to work in a way that suits them.

Likewise, Gerber noted that employers need to lead with empathy and by example: “First, leaders should be as honest as possible about their own struggles, as this creates authenticity and safety within the workplace. Second, fostering an empathetic leadership style is essential.”

Gerber said that empathetic leadership assumes that employees want to excel at their work—no one is lazy or slacking.

“In other words, it involves taking a radically trusting position when it comes to one’s team,” Gerber explained. “So, if someone is consistently late or missing deadlines, assume there is an underlying issue and work with them to find solutions through active listening. Focus on understanding how they feel, rather than how you would feel in their situation, and ask them directly how you can support them.”

At the same time, Gerber outlined that empathetic leadership does not mean unconditional tolerance.

“The best leaders always maintain strong values, goals and a clear vision, which they use to inspire their employees to work toward those ideals. This radical trust fosters respect and community, and you’ll be surprised how quickly productivity, performance, and morale improve alongside it,” he added.

Written by Hadeer Elhadary, Lead Journalist, ESG Mena – Arabic. Edited by Madaline Dunn.