As 2025 begin, it's time for workplaces of all shapes and sizes to make mental health a priority, especially as they continue to adapt to new ways of working. Changing work models, rapid technological advancements and evolving employee expectations have made it clear that managers play a critical role in fostering mental wellbeing at work. By adopting proactive strategies, managers can help their teams thrive mentally and professionally.
In Australia, the estimated cost of reduced productivity and workforce participation due to psychological and psychosocial injury is between $12-$40 billion per year, not including the additional costs associated with staff turnover due to mental health challenges (Committee for Economic Development Australia (CEDA), 2022)
Why Workplace Mental Health Matters
Supporting mental health at work isn’t just the right thing to do; it’s a business imperative. Research shows that employees with well-supported mental health are more productive, engaged, and loyal to their organisations. With changes in work design, such as hybrid working, balancing flexibility and well-being is essential.
Our Indicators of a Thriving Workplace data demonstrate that when managers prioritise mental wellbeing, they help reduce psychological distress and absenteeism, prevent burnout, increase productivity and build a culture where employees feel valued and supported.
Whatever an organisation does to support and improve the mental health and wellbeing of their people, the way to ensure sustainability is to measure effectiveness. Consider implementing a Thriving Workplace Index to understand the current state of your workplace before starting on your journey, and retest 12-18 months later to identify the progress your approach has had. Here are a few more key strategies to build into your workplace mental health plan for 2025:
Strategies for Managers to Support Workplace Mental Health
1. Encourage Open Communication
Open communication is the foundation of mental health support, Leaders can consider:
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Normalising discussions about mental health by sharing resources and initiating team check-ins.
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Leveraging technology like AI-powered surveys to identify stressors and gather anonymous feedback.
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Practice active listening by giving employees their full attention and responding empathetically.
Encouraging employees to share their concerns without fear of judgment builds trust and creates a psychologically safe environment. Our Indicators of a Thriving Workplace 2024 data indicates that quality relationships and strong connections in the workplace help to prevent psychological distress and burnout, encourage people to share their mental health experiences and promote loyalty. For example, employees reporting no burnout had higher Connectedness Domain scores (81) compared to those who scored in the clinical range for burnout (69).
2. Build a Culture of Psychological Safety
Creating a psychologically safe environment is more than just meeting employer obligations around managing risks to psychological health and safety. Psychological safety means employees feel comfortable being themselves without fear of negative consequences. Managers can lead with compassion by:
- Encouraging vulnerability by sharing their own experiences with stress or work-life balance.
- Setting up anonymous channels for reporting concerns.
- Holding regular team discussions focused on well-being and mental health topics.
When employees feel safe to voice their thoughts, they are more likely to seek help and collaborate effectively. Compassionate leadership and strong commitment to employee psychological safety builds a culture where employees feel valued and supported and are more likely to stay. Our data showed stronger Leadership Domain scores for employees indicating that they intended to stay with their employer for the next 12 months (73) compared to those who intended to leave (51).
Low levels of management support is a common psychosocial hazard. Strong management support is, however, predictive of higher levels of self-reported work ability, lower number of days impacted by psychological distress, and higher levels of intentions to stay according to our Indicators of a Thriving Workplace 2024 data.
3. Offer Flexible Work Options
Flexibility remains crucial in 2025 as hybrid work continues to dominate. Our Indicators of a Thriving Workplace 2024 data show that 73% of hybrid workers agree that their managers support work-life balance, but also show that 44% of hybrid workers do not believe that their workload is appropriate. With hybrid work comes a risk of working longer hours and not properly switching off. Managers can:
- Support employees in customising their work schedules to align with personal needs.
- Provide tools like time-blocking apps to help teams manage their workloads effectively.
- Lead by example by respecting flexible policies, such as avoiding unnecessary after-hours emails.
By accommodating diverse work preferences, managers can help reduce stress and increase job satisfaction.
4. Prioritise Employee Training on Mental Health Skill Building
Investing in mental health training empowers workers to support one another. Consider:
- Incorporating mental health education into onboarding and ongoing professional development. Check out our free Building Thriving Workplaces booklet for inspiration.
- Using e-learning platforms to make training accessible to all team members. Discover our online training offerings for your workplace.
Well-informed teams create a culture where stigma around mental health is significantly reduced.
5. Leverage Technology for Mental Health
Technology can be a powerful ally in promoting mental health. Consider the folliwing:
- Recommending mental health apps like Calm or Headspace for mindfulness and stress management.
- Using AI tools to monitor workloads and identify signs of burnout.
- Balancing the use of technology by setting boundaries to avoid over-reliance or intrusion into personal time.
“We need [our leaders] to communicate clearly, set expectations, and leverage technology to support employees in managing their workload”. - Thriving in a Hybrid World of Work report
The key is to use tech thoughtfully to enhance, not replace, human connections.
6. Encourage Regular Breaks and Time Off
Regular breaks and vacations are essential for recharging. As a leader, you can:
- Advocate for microbreaks throughout the day to reduce stress.
- Implement digital detox days where teams disconnect from screens.
- Promote a strong PTO (paid time off) culture by taking time off themselves and encouraging employees to do the same.
A well-rested team is more creative, productive, and engaged.
7. Create Clear Work Boundaries
The “always-on” culture can be detrimental to mental health. Consider and role model the following:
- Establishing clear after-hours communication policies to respect employees’ personal time.
- Encouraging employees to log off on time and avoid excessive overtime.
- Model healthy boundaries by setting an example, such as not sending emails outside working hours.
“It's a challenge to make sure people look after themselves and have the appropriate work life balance. As a leader I put a lot of effort into job design, work prioritisation, and leading by example.“ - Thriving in a Hybrid World of Work report
Creating a work environment that values boundaries help employees keep a healthy work-life balance.
Key Takeaways for Managers & Leaders in 2025
Supporting workplace mental health is no longer optional; it’s essential for effective leadership. Managers are at the forefront of creating environments where employees can thrive both mentally and professionally. By encouraging open communication, prioritising flexibility, using technology, and building a culture of psychological safety, managers can drive positive change in their organizations.
Will 2025 be the year of transformation for your workplace? As a leader, you can be part of shifting the dialogue and create actionable, proactive steps to support your team. The benefits are clear including employee satisfaction, productivity, and overall workplace culture.
Make 2025 the year of prioritising mental health and build workplaces where people can thrive.
