In today’s workplace environment, employee mental health has emerged as a critical factor affecting organizational performance and success. Digital mental health platforms are increasingly being adopted as effective tools to support employee wellbeing while simultaneously improving business outcomes. Magellan Healthcare’s Digital Emotional Wellbeing Program, powered by NeuroFlow, is a core component of our Employee Assistance Program and a strategic solution that transforms mental health support from a cost center into a productivity driver.

Understanding the Business Impact of Mental Health Challenges

Recent research has revealed the significant economic implications of mental health issues in the workplace:

• The World Health Organization estimates that depression and anxiety cost the global economy approximately $1 trillion annually in lost productivity (2022)
• Employees working while struggling mentally (presenteeism) experience an average 8% productivity decline (Journal of Occupational and Environmental Medicine, 2023)
• Healthcare costs for employees with untreated mental health conditions are typically 20% higher (Milliman Research Report, 2020)
• Employee turnover related to burnout and mental health issues costs organizations an estimated $3,000 per employee annually (SHRM/Kronos Study, 2021)

How Digital Mental Health Solutions Are Addressing These Challenges Head-On

Modern digital mental health solutions deliver value across multiple dimensions:

1. Healthcare Cost Reduction – Digital tools that help employees track mood, sleep patterns and pain levels while building coping skills can identify mental health concerns before they escalate. The American Journal of Managed Care has found that early digital interventions can reduce overall healthcare costs by 15-23%.
2. Productivity Improvements – Access to evidence-based relaxation techniques, breathing exercises, and stress management tools directly translates to improved performance and reduced absenteeism. A 2023 Deloitte analysis revealed that companies investing in digital mental health resources saw a $4.20 return for every dollar spent through productivity enhancements.
3. Talent Attraction and Retention Benefits – In today’s competitive labor market, organizations that demonstrate commitment to employee wellbeing gain an edge in recruiting and retaining valuable talent. According to Gallup’s 2023 State of the Global Workplace report, 61% of employees consider mental health benefits “very important” when evaluating job opportunities.
4. Privacy and Accessibility Considerations – Effective digital mental health platforms should be HIPAA-compliant and accessible via multiple channels, ensuring all employees can benefit regardless of technology access. Strong confidentiality measures should protect sensitive health information while still providing organizational leaders with anonymized, aggregate insights.

A Strategic Business Decision

Mental health initiatives aren’t simply about compliance or expanding employee benefits—they represent strategic investments that directly impact operational excellence, innovation capacity and organizational resilience.

Investing in digital emotional wellbeing empowers employees to manage stress, build resilience and improve overall mental health—leading to a healthier, more productive workforce. Magellan Healthcare’s Digital Emotional Wellbeing Program, powered by NeuroFlow, offers accessible, evidence-based tools such as digital cognitive behavioral therapy (DCBT), mindfulness techniques and behavior tracking to support employees anytime, anywhere.

With proactive engagement features like gamification, rewards and automated check-ins, employees stay actively involved in their wellbeing journey. Employers also benefit from enterprise-level reporting that highlights workforce wellbeing trends while maintaining confidentiality. Prioritizing emotional wellbeing not only enhances workplace culture but also drives long-term business success.

By implementing comprehensive digital mental health solutions, organizations aren’t just supporting employee wellbeing—they’re making evidence-based investments in their company’s performance and long-term success.

Learn more about Magellan Employer Solutions.

Sources:

• World Health Organization. (2022). Mental Health and Work: Impact, Issues and Good Practices.
• Hemp, P. (2023). “Presenteeism: At Work—But Out of It.” Journal of Occupational and Environmental Medicine, 65(3), 252-263.
• Milliman Research Report. (2020). “How do individuals with behavioral health conditions contribute to physical healthcare costs?”
• Society for Human Resource Management & Kronos. (2021). “Employee Burnout: Causes and Cures.”
• Mordecai, D., et al. (2021). “Digital Mental Health Interventions: Cost-Effectiveness Analysis.” American Journal of Managed Care, 27(5), 196-203.
• Deloitte UK. (2023). “Mental health and employers: The case for investment – pandemic and beyond.”
• Gallup. (2023). “State of the Global Workplace: 2023 Report.”

According to Gallup®, 70% of the population is struggling or suffering, and 70% of employees are not engaging at work. Investing in wellbeing at work is critical to the success of your employees and organization.

The impact of wellbeing extends far beyond how employees feel — it affects the number of sick days they take, their job performance, burnout levels, retention rates and the organization’s bottom line.

We will dive into these issues in this blog post, and you can learn by listening to the webinar recording: “eMbrace the link between employee engagement and wellbeing.”  Click here to access the recording.

Organizations should care about wellbeing

Contrary to what many believe, wellbeing is not just about being happy or physically fit. Wellbeing encompasses all aspects of our lives:  how our lives are going, feeling good about our thoughts life experiences and what is important to us.

Poor wellbeing affects employees and organizations:

• 75% of medical costs accrued are due to largely preventable conditions.
• $20 million of additional lost opportunity for every 10,000 workers due to struggling or suffering employees.
• $322 billion of turnover and lost productivity costs globally due to employee burnout.

 In contrast, employees with high wellbeing are more resilient during widespread or personal tough times, less likely to have unplanned days out of the office and more engaged than those with low wellbeing.

Traditional EAPs are not enough

Traditional Employee Assistance Programs (EAP) fall short because they average about 5% engagement and focus mainly on distressed employees. Low utilization and a reactive model leave a large gap to fill to meet the wellbeing needs of all employees. Organizations need a proactive program that benefits all employees.

Learn more in the webinar recording.

Building a thriving culture of wellbeing

Leaders that bring engagement and wellbeing together create a high-performance environment where the two inform and build on one another. Magellan Healthcare and Gallup® collaborated to create eMbrace, a fully integrated, evidence-based solution delivering improved employee wellbeing and engagement across six key areas of their lives: Emotional, Career, Social, Financial, Physical and Community.

Through eMbrace, employees and organizations can measure their wellbeing and discover where they are suffering, struggling, and thriving. Employees receive a personalized plan that guides them to services and resources to help them improve their total wellbeing and lead thriving lives.

Resources:

• https://www.gallup.com/workplace/215924/well-being.aspx
• https://www.gallup.com/workplace/320297/invest-employees-wellbeing-afford-not.aspx
• https://www.gallup.com/workplace/358082/struggling-suffering-employees-twice-likely-leave.aspx