The Complexity Curve: How Serious Mental Illness Is Rewriting Workforce Strategy

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December 26, 2025

Serious mental illness is rising sharply in today’s workforce. According to Lyra’s Workforce Mental Health Trends Report, complex conditions like severe depression and suicidality are up 88% year over year, and substance use concerns are up 26%. Even as stigma declines and more people seek help, they’re arriving with far higher-acuity needs. Lyra data shows a 46% increase in symptom severity since 2021, which means many employees now require care that goes beyond standard outpatient support.

These rising needs are showing up exactly where benefits leaders feel the strain: 65% report an increase in serious mental health–related absences, and mental health–related sick days have jumped 36%. As a clinician, it’s clear to me that traditional benefits alone aren’t enough to manage this level of acuity.

Why complexity matters

Serious mental illness includes conditions such as treatment-resistant depression, complex PTSD, and substance use disorders with co-occurring issues. These are not conditions that resolve with a few therapy sessions or sporadic access to a psychiatrist. They require coordinated, multifaceted treatment, and most employees simply don’t have access to it. 

Layer in the stressors people are facing today, like economic uncertainty, caregiving strain, rapid workplace change, and sociopolitical tension, and the likelihood of symptom escalation increases.

Then they enter an incredibly fragmented care system: long waits, difficulty accessing psychiatry, multiple systems and referrals, and unclear next steps. Clinically, that’s a setup for worsening symptoms. Organizationally, it shows up as reduced functioning, lost productivity, and, in many cases, extended leave. Not because employees aren’t trying, but because the system wasn’t designed for the complexity of their needs.

Misconceptions that hold employers back

These assumptions come up often, and they’re simply not true:

  • “Serious mental illness is rare.”
    It’s present in every workforce.
  • “Employees with complex conditions can’t stay at work.”
    They can, when they receive the right care.
  • “Escalation is inevitable.”
    High-quality, continuous support can prevent many crises, hospitalizations, and extended leaves.

The real issue isn’t the individual. It’s the mismatch between their needs and the care model surrounding them.

Strategies to support employees with serious mental illness

Employers can make a meaningful difference by aligning benefits with clinical reality:

  1. Identify and treat serious mental illness early - Timely assessments and fast access to specialty therapy or medications stabilize symptoms before they intensify.
  2. Keep employees engaged in coordinated care - Integrated programs that blend therapy, medications, and condition-specific support dramatically improve outcomes.
  3. Replace fragmented offerings with unified care - A cohesive system eliminates the navigation burden and reduces the risk of people falling through the cracks.
  4. Foster a supportive culture and equip managers - Psychologically safe workplaces and manager training encourage early help-seeking—the most effective form of prevention.
  5. Choose benefits that truly support high-need populations - Move past “check the box” solutions. Prioritize benefits intentionally designed for complex conditions.

Closing the gaps that put employees at risk

Rising mental health leave is a symptom, not the root issue. Employees’ needs are becoming more complex, but most care systems haven’t evolved to match that complexity.

When employers invest in integrated, specialized care, they’re not just reducing escalation and leave—they’re protecting their workforce and ensuring people get the level of support their conditions demand.

Complex needs can’t wait. Give your workforce access to care that actually works.

Author

Smita Das, MD, PhD, MPH

VP of Psychiatry & Complex Care at Lyra Health

Dr. Das is board certified in psychiatry, addiction psychiatry, and addiction medicine and has over 20 years of research experience. She completed her master’s degree at Dartmouth College and her MD/PhD at the University of Illinois at Urbana Champaign. She’s a past president of the Northern California Psychiatric Society and the American Psychiatric Association District Branch, and a clinical associate professor at Stanford School of Medicine. She also serves on the Council on Addictions at the American Psychiatric Association and has presented to the US Congress on the importance of access to care for substance use disorders.

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