Introduction
It’s time to make your next mental health move
Over the past several years, benefits leaders have elevated mental health to a core business priority. But as care costs climb, employee needs grow more complex, and AI reshapes how we work, leaders face a new set of challenges. To guide the way forward, Lyra Health surveyed more than 500 HR and benefits leaders from U.S.-based global organizations. The findings highlight where the landscape is shifting and how bold mental health strategies can keep pace.
“These trends are an invitation to reimagine care and build stronger, more resilient organizations that thrive through change. They are also an opportunity: the same forces reshaping work can help deliver smarter, more personalized mental health care to people everywhere.”
Jennifer Schulz
CEO of Lyra Health
Resilience wears thin as mental health leaves and complex needs rise
After years of steady progress, cracks are beginning to show. Lyra data reveals that mild concerns are ticking up again after years of decline—and the number of people beginning care with serious, costly conditions like substance use has grown 46% since 2021.
The clearest signal yet: Mental health leaves are surging.
of benefits leaders say disability leave is on the rise
More people start care with higher baseline severity.
Source: Lyra data
“We’re at the same kind of turning point we saw a decade ago when traditional EAPs gave way to more robust offerings. The standard for mental health at work is shifting again—toward proactive strategies, emphasis on sustainable work design, and truly comprehensive care.”
Joe Grasso, PhD
VP of Workforce Transformation at Lyra Health
Signs resilience has run out
More benefits leaders report worsening employee mental health:
- Complex conditions (e.g., severe depression or anxiety, suicidality): up 88% YoY
- Substance use: up 26% YoY
- Employee mental health decline: up 50% YoY
- Sick days tied to mental health: up 36% YoY
AI is the double-edged sword of progress
AI is both a stressor and a solution. More than a third of benefits leaders say AI is already contributing to employee anxiety, while nearly a quarter view it as a path to achieving better work-life balance. Success will depend on how well organizations prepare their workforce to adapt.
AI Paradox at Work
of benefits leaders say AI is driving employee stress and job anxiety
expect AI to improve work-life balance through reduced workload
“AI should be treated as a massive change-management initiative. Without clear guidance, employees are left with the mandate to use new tools, but no roadmap. This fuels stress, uncertainty, and anxiety.”
Joe Grasso, PhD
VP of Workforce Transformation at Lyra Health
AI in mental health care: Putting human connection at the center
Benefits leaders overwhelmingly agree: AI should support, not replace, human providers—and that hybrid models rooted in human connection are key to delivering safe, effective care.
The future of AI, according to benefits leaders
of benefits leaders believe employees should have a choice between human and AI-enabled care
say AI should support rather than replace human providers
are open to hybrid care models with human connection at the core
Caregiving stress is the invisible load breaking your workforce
More employees are juggling full-time work with full-time care for kids, teens, aging parents, or all three. When children’s or family needs go unaddressed, the ripple effects are clear: higher absenteeism, out-of-network claims, ER visits, and lost productivity.
Nearly half of benefits leaders rank caregiving and family stress as a top workforce issue.
Caregivers are carrying the load alone
of benefits leaders say employees struggle to find benefits tailored to caregivers
say quality mental health care for kids and teens is hard to access
report rising child and teen mental health claims
“Most of what the system does for kids’ mental health is reactive—waiting until they struggle. What’s missing is a systematic, proactive approach to help children build resilience from the start.”
Alethea Varra, PhD
Chief Clinical Officer at Lyra Health
This is just the start.
Download the full 2026 Trends Forecast for exclusive data and guidance to shape your 2026 strategy.
Neurodiversity is the next frontier in mental health investment
Nearly all benefits leaders are zeroing in on how to better support neurodivergent employees and families. But uncertainty about what works best underscores the urgency and complexity of the need. Half of neurodivergent employees report missing work due to a lack of support, while parents face months-long waits for evaluations, adding strain to already stressed families.
Awareness outpaces action
Many benefits leaders want to better support neurodivergent employees and families, but most don’t know where to start.
Key areas of investment in neurodiversity support
Access to neurodivergent-aware or neurodivergent-identified providers
Tailored coaching or therapy for neurodivergent employees
Skill-building for time management and goal setting
Accommodations or tools for focus, sensory needs, or communication preferences
Manager training on how to support neurodivergent team members
“Employees and caregivers in the neurodiversity community are a force to be reckoned with, bringing extraordinary dedication and perspective. But to unlock that potential, workplaces must provide the flexibility and accommodations that allow them to truly thrive.”
Monika Roots MD, FAPA
President and Chief Medical Officer of Bend Health
Managers are burning out while holding their teams together
Managers shoulder a heavy burden: their own unsustainable workload, compounded by soaring leaves of absence and the disruptions of AI—alongside the emotional toll of supporting employees in distress. Companies see managers as the first line of defense in supporting employee mental health, but until support catches up to the reality of the role, managers will remain under-equipped to meet rising expectations.
96%
say managers are an integral part of their workforce mental health strategy
89%
say managers receive dedicated resources and training to support employee mental health
But
95%
say most managers would benefit from more training on how to support employee mental health
What benefits leaders say is stressing managers most
Pressure to meet goals without adequate support
Emotional toll of supporting struggling team members
High workload or unrealistic expectations
“Managers have become the linchpin of workplace mental health, but training alone isn’t enough. To truly equip them, companies need to reduce systemic pressures—like unrealistic goals and excessive workloads—while giving managers clear protocols, robust resources, and recognition for the emotional labor of supporting their teams.”
Justine Mitsock
Head of Global Benefits Strategy at Lyra Health
ROI now balances cost containment with workforce performance
With health care costs at a 15-year high, leaders face pressure to reduce spending without compromising employee health. Financial leaders continue to emphasize cost savings and measurable returns. Many organizations are also expanding how they define ROI to include outcomes like productivity, retention, and utilization—outcomes that both reduce costs and strengthen long-term business performance.
Additional measures benefits leaders use to evaluate the impact of their mental health benefits
Employee productivity and engagement
Employee retention and recruitment
Benefit utilization
“With care utilization and complex needs rising and employee resilience slipping, employers expect their mental health benefit to step up and deliver real value. Fast access to the right, high-quality care is the foundation of value.”
Sean McBride
Chief Customer Officer
at Lyra Health
Workforce mental health is evolving fast, and the stakes have never been higher.
Download the full Lyra Workforce Mental Health Trends Forecast to see how leading organizations are preparing for what’s next.
