Lyra Health Report Signals Escalating Workplace Mental Health Pressures
A 2026 report from Lyra Health on workforce mental health trends shows that expanded benefits are not fully offsetting rising pressures on employees and managers.
The survey, conducted between July and August 2025, included more than 500 benefits leaders from organizations ranging from 500 to over 90,000 employees across industries including health care, retail, law, finance, technology, transportation, and the public sector. Nearly all respondents said comprehensive mental health benefits are essential for attracting and retaining talent.
Worsening Mental Health Despite Investments
Yet, even with growing employer investments in mental health programs, leaders report worsening conditions. Serious mental health concerns, substance use, and related sick days are increasing, and mental health-related leaves of absence have surged, suggesting workforce resilience is being tested. According to the report, nearly seven in 10 benefits leaders say mental health challenges significantly affect employees’ ability to perform their jobs.
“The level of pressure employees are under right now is unprecedented,” said Smita Das, MD, PhD, MPH, vice president of psychiatry and complex care at Lyra Health in the report. “For many, it is simply not sustainable.”
Organizations also report feeling unprepared to respond to acute crises. Nearly nine in 10 benefits leaders said their teams are expected to handle mental health emergencies without adequate training. In response, many companies are seeking to increase manager training, clarify escalation protocols, and expand timely access to licensed mental health providers.
AI and At-Home Caregiving Stress
On top of these challenges, artificial intelligence is changing workplace dynamics, with more than a third of leaders reporting that it contributes to employee anxiety. At the same time, a quarter of benefits leaders believe AI could improve work-life balance if implemented thoughtfully. The report notes that successful implementation depends on clear guidance and support for employees adapting to new technologies.
Another key trend is the rise in at-home caregiving responsibilities, which can affect workplace performance and engagement. Nearly half of benefits leaders now identify family stress as a top workforce concern, representing a tenfold increase from 2024. Many employees struggle to find caregiver-specific benefits, and 53 percent of leaders reported that quality pediatric mental health care is difficult to access. The report also found that 89 percent of leaders are seeing rising child and adolescent mental health claims.
Neurodiversity and Manager Pressures
It also identified neurodiversity as an urgent focus. Half of neurodivergent employees report missing work due to insufficient support, and many managers report feeling unprepared to lead diverse teams. Delays in autism and other neurodivergent diagnoses add stress for working parents.
Additionally, managers themselves are facing mounting pressures. Manager-to-employee ratios have grown significantly since 2017, increasing workloads and responsibilities. Although 93 percent of managers receive some mental health training, 95 percent of benefits leaders said additional support is needed. “Managers have become the linchpin of workplace mental health, but training alone is not enough,” said Justine Mitsock, head of global benefits strategy at Lyra Health in the report.
Financial pressures further complicate the picture. With health care costs at a 15-year high, 94 percent of benefits leaders said demonstrating return on investment is a top priority. Organizations are increasingly evaluating mental health initiatives based on outcomes such as productivity, retention, and long-term performance.
Overall, these findings suggest that employer awareness and benefits expansion alone cannot counter structural workplace pressures. Addressing caregiver stress, neurodiversity support, and manager capacity will be critical to sustaining workforce engagement, resilience, and performance.