How Mental Health Can Make or Break Your Business In A Crisis

Businesses face all kinds of crises, from economic downturns to natural disasters, cyberattacks, and even internal challenges like workplace harassment or leadership changes. In such turbulent times, organizations often focus on practical operations—like securing data, mitigating financial damage, or maintaining essential services. However, one critical element that should never be overlooked is the mental health of employees.

Happy workers wearing yellow safety vests. Caption reads: "From our regular discussions with HR leaders around the world, it’s clear that the organizations outperforming their peers are those that have cultivated a strong sense of empathy and flexibility, developed new skills to address workforce needs, and extended holistic mental health support to employees." -Josh Bersin, The Josh Bersin Company

 

What Does Mental Health Support Look Like in Business?

Mental health support in a business refers to a range of programs, resources, and initiatives aimed at maintaining and improving the well-being of employees. It includes:

  • Employee Assistance Programs (EAPs): These are confidential services offering counseling and support for emotional well-being, stress management, substance abuse issues, and other personal concerns.
  • Training for Managers and Supervisors: Training leaders to recognize signs of stress, burnout, and other mental wellness issues in their teams and providing appropriate support or referrals.
  • Access to Mental Health Resources: This could include access to therapy (in-person or virtual), mindfulness programs, relaxation areas, and mental wellness workshops.
  • Workplace Culture: Building a supportive, open, and understanding culture where employees feel comfortable talking about mental health challenges.
  • Emergency Mental Health Plans: Having a clear, pre-established crisis management protocol that integrates wellness support.

Smiling woman working on laptop in home office. Caption reads: "[During the Covid-19 pandemic] businesses quickly realized the importance of supporting employees' mental health during crises. Organizations that prioritized mental well-being fostered better morale and productivity." -DeJong Consulting 

 

Why Is Mental Health Support Important BEFORE a Crisis?

Crisis situations—whether personal, organizational, or global—can be overwhelming. Employees may face emotional distress, confusion, anxiety, and burnout, especially if they’re unprepared or unsupported. Having behavioral health support systems in place before a crisis hits can:

  • Reduce Stress and Anxiety: Knowing that there are resources available to help can give employees a sense of security and peace of mind.
  • Enhance Productivity and Focus: When employees know that their well-being is a priority, they can focus more on the tasks at hand, rather than struggling with stress.
  • Increase Resilience: Having a wellness support network in place helps employees manage and bounce back from adversity more effectively.
  • Build Trust and Loyalty: A company that prioritizes employee health is more likely to retain employees, as they feel valued and supported.

Map of the world with bright lines showing connections between all parts of it. Caption reads: "Our deeply connected world means that a crisis anywhere can have wide-reaching impacts on mental health. Crisis can be an opportunity for companies to learn and grow, but only if they can succeed in supporting employee wellbeing when it’s needed most." -Garen Staglin, Cofounder and Chairman, One Mind

 

Planning Mental Health Support in Crisis Management

The most successful businesses don’t wait for a crisis to begin addressing mental health. Instead, they plan ahead:

  1. Assess Risk and Identify Needs: Understand potential crises (e.g., economic recession, natural disasters) and how they might impact employees mentally.
  2. Create a Mental Health Crisis Plan: Develop a crisis-specific well-being response strategy, including accessible resources, trained cognitive health professionals, and communication plans.
  3. Communicate with Employees: Let employees know that their health is a priority and that resources will be available if a crisis occurs.
  4. Build a Supportive Environment: Create a culture that encourages openness about emotional balance and normalizes seeking support.
  5. Provide Regular Check-ins: Set up regular check-ins during a crisis to gauge the mental well-being of employees and provide ongoing support.

 

Learn from Real-World Scenarios

Let’s look at two scenarios to gain valuable insights into how mental health support can make or break a business during a crisis. They illustrate the stark contrast between companies that proactively prioritize employee well-being and those that don’t. For example, businesses with wellness programs often see lower turnover, faster recovery, and higher trust in leadership during tough times. Learning from these examples helps organizations understand the importance of creating a supportive, resilient workplace before a crisis hits.

 
Case Scenario 1: Company Without Mental Health Support During a Crisis

Hand holding cell phone controlling smart devices in home. Caption reads: “Company: XYZ Electronics. Industry: Consumer Electronics. About the Company: XYZ Electronics is a mid-sized company specializing in smart home devices. They had grown rapidly over the past five years and expanded their workforce significantly. The Crisis: XYZ Electronics was struck by a massive cyberattack that breached their customer data and halted production for several weeks. The company’s reputation was severely damaged, and several major clients threatened to pull their contracts. Financially, the company was facing huge losses, and the employees were under immense pressure to get things back on track quickly. How Employees Reacted: Increased Stress and Anxiety: Employees were overwhelmed with uncertainty about job security. Burnout: The lack of clear leadership and overwhelming workload caused many employees to experience burnout. Communication Breakdown: Without a structured communication plan, rumors spread, causing employee distrust. Emotional Distress: Several employees reported feeling anxious, scared, and emotionally drained, but there was no visible outlet for these emotions. Mental Health Support (or Lack Thereof): No Pre-Existing Support Systems: The company did not have any formal mental health support in place. There were no Employee Assistance Programs, and managers were not trained to recognize or address mental health issues. Reaction to the Crisis: The company’s leaders focused mainly on operational recovery, ignoring the emotional toll on employees. There was no organized mental health response or counseling services offered. Employee Outcomes: High Turnover: Many employees quit or took extended leave due to burnout and stress. Declining Productivity: Morale plummeted, and employees struggled to keep up with work demands. Long-Term Effects: The lack of mental health support worsened the crisis. The company struggled to regain employees’ trust. Rebuilding internal morale took a long time.”

 
Case Scenario 2: Company with Mental Health Support in Place During a Crisis

Person using monitor with 3D capabilities. Caption reads: Company: ABC Tech Solutions. Industry: Software Development. About the Company: ABC Tech Solutions is a large software development firm known for creating enterprise-level business solutions. The company values employee well-being and has invested in mental health support for years. The Crisis: ABC Tech Solutions faced a major crisis when a major product launch failed, leading to massive client backlash and financial losses. This crisis was particularly challenging because many employees had been working long hours under tight deadlines, and now they were dealing with the pressure of salvaging the company’s reputation. How Employees Reacted: Increased Stress: Many employees were stressed due to the failed launch, but there was confidence that the company would take care of them. Emotional Reactions: Some employees felt anxious, but they also felt empowered to speak out and seek help due to the company’s open culture surrounding mental health. Physical Symptoms of Stress: Some employees experienced burnout symptoms, such as fatigue, sleep disturbances, and tension. Mental Health Support: Pre-Existing Mental Health Programs: ABC Tech Solutions had an extensive mental health program. Crisis Response Plan: The company had a well-established crisis management plan that included mental health support. Employee Communication: During the crisis, ABC Tech Solutions communicated openly about the situation. They ensured all employees had access to therapy. Management and Leadership Support: The leadership team regularly checked in with employees, offering reassurance and emotional support. Employee and Business Outcomes: Lower Absenteeism and Turnover: While some employees took time off, the company saw a much lower turnover rate compared to industry norms. Most employees chose to stay. Increased Trust in Leadership: Employees reported feeling supported by their leaders, which built long-term trust. Faster Recovery: The combination of emotional support and operational recovery allowed the company to regain its footing quicker than expected. Productivity increased as employees felt more balanced and focused.

The Critical Role of Mental Health Support

In crisis management, the emotional well-being of employees cannot be an afterthought. The difference between companies that manage crises successfully and those that don’t often lies in how they care for their people. As illustrated by the two case scenarios, businesses that proactively address mental wellness, both in normal times and during crises, not only help their employees but also ensure better recovery and long-term success.

Investing in mental health support systems before a crisis hits is not just a good business practice—it’s essential for fostering a resilient, focused, and engaged workforce capable of navigating even the toughest of challenges.

 
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Resources

Bersin, Josh. “Mental Health Has Become a Business Imperative.” MITSloan Management Review. 8/29/22. Accessed 2/17/25. https://sloanreview.mit.edu/article/mental-health-has-become-a-business-imperative 

“Crisis Management and Business Resilience: Lessons from Recent Economic Disruptions.” DeJong Consulting.11/1/24. Accessed 2/17/25. https://www.dejongconsultingllc.com/article/crisis-management-business-resilience-lessons-from-economic-disruptions 

Staglin, Garen. “Planning For A Crisis: Tactics To Support Employee Mental Health During Emergencies.” 4/6/23. Accessed 2/17/25. https://www.forbes.com/sites/onemind/2023/04/06/planning-for-a-crisis-tactics-to-support-employee-mental-health-during-emergencies