2027 Workforce Mental Health Trends

November 3, 2026

AI has the potential to change jobs, skills, and expectations at work. Employees are learning new ways of working while facing uncertainty about what comes next. Managers are helping their teams adapt while navigating those same changes themselves.

Benefits leaders increasingly see mental health as essential to how organizations navigate that uncertainty and perform through change.

83%

Of benefits leaders say workforce mental health is more important to business performance than it was three years ago

That’s one of the findings from Lyra’s 2027 Workforce Mental Health Trends Forecast, based on a survey of more than 500 HR and benefits leaders from multinational organizations.

Trend #1: Mental health makes performance possible.

The pressure to perform isn’t letting up. Half of benefits leaders say higher expectations with fewer resources are negatively affecting employee mental health, and 53% name burnout as a top workforce concern.

At the same time, expectations for mental health benefits are changing.

92%

Of benefits leaders say supporting employee mental health is essential to sustaining business performance

Mental health support is making an impact:

81%

Higher employee productivity

72%

Higher employee engagement

73%

Positive financial ROI

Benefits leaders are increasingly looking beyond engagement and utilization to understand what mental health investment is delivering for their people and their business. Productivity remains the top measure of mental health benefit impact (up 40% year over year), while measurable financial return is a top priority for Finance.

But the report also reveals a disconnect: Employers recognize that the conditions of work itself can affect mental health, yet far fewer are addressing those factors across the organization.

ROI is strongest when you can see the complete picture. Financial return is critical, but so are the clinical and workforce outcomes behind it. Bringing those measures together gives employers a clearer view of what their mental health investment is delivering.

—Sean McBride, President of Employer Solutions, Lyra Health

Trend #2: AI is creating a new kind of workplace anxiety.

AI can make work easier. It can also give employees a whole new set of things to worry about.

9 in 10

Benefits leaders say their organizations are least prepared to support addiction

48%

Say AI and rapid technological change are negatively affecting workforce mental health

And job security is only part of the story. Benefits leaders are seeing concerns about ongoing change, human connection, heavier workloads, confidence in skills and judgment, cognitive overload, and the pressure to continuously adapt.

The breadth of those concerns points to a challenge that goes beyond helping employees learn new technology. Organizations also have to consider how people experience the pace and uncertainty of AI transformation.

AI anxiety leaves people wondering where they fit, whether their skills will still be valuable, and what’s expected of them next. That distress worsens when organizations expect output beyond what’s humanly possible to manage or devalue the human elements of work.

—Joe Grasso, PhD, VP Workforce Transformation, Lyra Health

Trend #3: Managers have more people—and more pressure.

AI may take work off a manager’s plate. That doesn’t necessarily make managing easier. Benefits leaders expect managers to spend less time on administration and more time developing people. They also expect managers to lead larger teams.

89%

Say managers will become more important as AI changes work

As routine work shifts, managers are taking on more of the work that depends on distinctly human capabilities: coaching, judgment, connection, and helping people adapt to change. And many will be doing it at greater scale.

85%

Of benefits leaders say managers would benefit from more support

Managers are carrying more than ever. They’re helping people make sense of change, stay connected, and adapt to new ways of working. We need to make sure they have the coaching and support to do that well.

—Leslie Riggs, Chief People Officer, Lyra Health