Home FeaturedWorkplace mental health often gets less traction than employment law, compliance issues. Why?

Workplace mental health often gets less traction than employment law, compliance issues. Why?

by Bill Howatt
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I’ve had the privilege of speaking at various conferences over the past year. I found it interesting that, even with growing evidence supporting the importance of workplace mental health, sessions on the topic consistently draw less interest than those focused on employment law.

It’s a curious contrast, especially considering how much we now understand about the impact of mental health on employee well-being, productivity and organizational performance.

One question that came to mind upon reflection is whether workplace mental health is gaining the traction it deserves compared to employment law topics and, if not, why.

The employment lawyers vs. workplace mental health consultants paradox

I have deep respect for lawyers; many are close colleagues and friends. This isn’t about questioning their value — it’s about exploring why many employers invest time and resources in hiring employment lawyers rather than workplace mental health consultants. Both bring value, but one is viewed as a must-have while the other may be seen as a nice-to-have or an opportunity.

One observation stands out: when faced with a legal risk, employers often hire employment lawyers without hesitation. Whether it’s a compliance issue, a grievance or a potential lawsuit, the response is swift and decisive. Legal risks are tangible; they carry financial, reputational and regulatory consequences.

Contrast that with employee well-being and psychological health and safety (PHS), the foundation of workplace mental health. When it comes to hiring a PHS consultant or investing in a proactive PHS program to prevent mental harm and promote mental health, hesitation is often more common than when hiring a lawyer — where the reason is apparent.

Employers often ask the following questions before hiring a PHS consultant:

  • “What’s the value?”
  • “What’s the risk if we do nothing?”
  • “Do we really need to spend time, money and resources now?”

It’s not unusual to hear, “We’d love to do more for employees’ mental health, but we don’t have time.” However, when a legal case arises, time and resources are allocated quickly.

Why? Because legal risks are visible and immediate — in contrast to PHS risks such as chronic stress, poor leadership or disengagement, which are viewed as part of work and not tangible risks that can negatively impact organizational results.

I recently shared with a lawyer friend that I’m a little envious of their profession. When a legal issue arises, employers act. But the urgency isn’t the same when it comes to protecting employees from mental harm. Yet both legal counsel and PHS consultants share the same mission of risk mitigation.

In fairness to employers, a pending legal risk from an event at 4 p.m. today will get attention, whereas a statistic indicating billions in lost productivity due to poor mental health will not.

Take, for example, a workplace where a manager consistently undermines team members. There may be no formal complaints, no lawsuits. But over time, morale dips, productivity suffers and talented employees leave. The cost is real. But because it’s not tied to a single tangible event, it’s often overlooked — or, worse, tolerated.

To mature the workplace mental health conversation, we need to recognize that investing in psychological safety is not just about being compassionate; it’s about being strategic. Employers who understand how to build psychologically safe cultures — in which fairness, inclusion and respect are the norm — are less likely to face issues such as constructive dismissal, disability claims or allegations of bullying and harassment.

Being an employer today is complex. They must navigate tort law, human rights codes, occupational health and safety regulations, collective agreements and workers’ compensation legislation. The stakes are high, and the consequences of missteps are clear.

But when it comes to how employees feel at work and how they experience their day-to-day environment, the urgency and clarity around employer responsibilities are often lacking. When the incentive is to achieve a quarterly result, the focus shifts more toward the what than the how.

Adding to the PHS buy-in challenge is that some employers still believe mental health is personal, intangible or outside their control. They may not realize that workplace conditions can profoundly impact mental health and that they have a legal and ethical obligation to protect employees from psychological harm.

Science reinforces this. Chronic stress, when sustained over time, can physically alter the brain. For example, prolonged exposure to psychological strain can shrink the hippocampus, impair memory and increase vulnerability to mental harm. In severe cases, this can lead to psychological injuries that result in disability claims.

Why some employers aren’t buying into workplace mental health

While hiring a lawyer is often viewed as a necessity, hiring a PHS consultant is seen as optional. Here are five reasons why this mindset persists:

“We’ve tried this before” fatigue. Organizations may feel they’ve already addressed mental health through wellness days, guest speakers or support lines. But if these efforts don’t lead to visible change, skepticism sets in. Imagine a company that installs a gym and offers yoga classes but ignores toxic leadership or unrealistic workloads. The wellness efforts may be well-intentioned, but without addressing root causes, they fall short. Over time, employees disengage and leaders conclude that “mental health programs don’t work.”

Confusion between mental health and mental illness. Mental health is often misunderstood. Many people still equate it with mental illness, assuming it only matters when someone is in crisis. But mental health is about how we think, feel and relate to others every day. A psychologically healthy workplace isn’t just one with a crisis hotline; it’s one where employees feel safe to speak up, where leaders model empathy and where systems are designed to support, not strain, people.

Lack of a clear business case. Legal risks come with clear financial consequences. Mental health risks? Not so much, at least not on the surface. Consider presenteeism — when employees show up but don’t fully function due to stress or burnout. Their productivity drops, errors increase and engagement plummets. Multiply that across a team, and the impact on revenue per FTE becomes significant. Yet because these losses aren’t always visible, they’re often overlooked.

Gender dynamics and stigma. Women tend to outnumber men at many mental health events. This aligns with research showing that women are more likely to seek mental health support. But it also points to a deeper issue: stigma. Some men may fear that engaging in mental health conversations could be seen as weakness. Others may not see its relevance. This underscores the need for inclusive messaging and role modelling by leaders. When senior leaders — especially males — openly support mental health, it sends a powerful signal that it’s okay to care. And since men are more often in senior decision-making roles, there may be a spillover effect — and stigma — that assume workplace mental health challenges are due to employees, rather than acknowledging the role the environment plays in the employee experience.

Literacy and leadership buy-in. Mental health literacy is foundational. If leaders and HR professionals can’t clearly explain workplace mental health — why it matters and how it connects to performance — it’s unlikely to be prioritized. We need to move beyond generic wellness slogans and equip leaders with the tools to understand and act. This includes training on psychological safety, mental fitness and the business case for investing in employees’ well-being.

What needs to change

To shift the narrative, employers need to treat workplace mental health as a strategic investment rather than a soft benefit. Just as legal counsel protects organizations from legal risk, psychological health and safety consultants and programs help protect organizations and their people from mental harm — and increase the opportunity for employees to perform at their full potential.

Three coaching tips to build the business case for workplace mental health

Connect mental health to business metrics. Use data to show how mental health affects productivity, retention and revenue per FTE. For example, calculate the cost of absenteeism and presenteeism in your organization. Link improvements in psychological safety to reductions in turnover and increases in engagement.

Start with leadership literacy. Offer targeted training for leaders on the difference between mental health and mental illness, the legal obligations of psychological safety and how leadership behaviours influence employee well-being. Equip them with practical tools to foster inclusive, respectful and supportive environments.

Frame mental health as risk prevention. Position workplace mental health as a proactive risk management strategy. Just as legal compliance prevents lawsuits, psychological safety prevents burnout, conflict and reputational damage, as well as future legal and disability risks. Use real-world examples to illustrate how early intervention and culture-building can reduce long-term costs.

    Final thought: investing in what matters most

    In a VUCA (volatility, uncertainty, complexity and ambiguity) world where stress and employee issues are rising, the need for proactive workplace mental health strategies has never been greater. Both employment lawyers and psychological health and safety consultants play vital roles in mitigating risk. One profession responds to legal threats; the other helps prevent them.

    But effective risk management starts with leadership understanding the why, what and how of PHS:

    • Why it matters: to protect people and performance
    • What it includes: systems, culture and leadership behaviours that foster psychological safety
    • How to implement: through education, strategic planning and measurable tools

    Without this clarity, organizations risk more employee issues escalating into legal settings. Yes, employers must spend money on lawyers, who provide a necessary service. But shouldn’t they also invest in their people’s well-being with the same commitment?

    After all, a healthy workplace isn’t just good for employees — it’s good for business.

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