8 in 10 employers plan to increase or reallocate mental health spend in 2025

Personalization, AI and proactive care to transform workplace mental health in 2025.

BOSTON, MA, UNITED STATES, January 15, 2025 /EINPresswire.com/ -- As we enter 2025, workplace mental health is increasingly viewed as a central aspect of organizational culture and employee wellbeing. Koa Health’s latest research reveals crucial predictions and emerging trends that will shape the future of mental health in the workplace, informed by an independent survey of 500 U.S. and U.K. business leaders and insights from industry experts and mental health professionals. The data reveals that workplace mental health will remain a top priority in 2025, with 8 in 10 employers committing to an increase in their spending on mental health.

The findings from the mental health trends survey also point to significant shifts in mental health care delivery, with a clear focus on personalization, the expanding role of artificial intelligence (AI), and a prevention-first approach that promises to reshape how organizations support their employees’ mental health.

Key observations:
- Commitment to mental health investment: Over 78% of surveyed business leaders plan to allocate additional funds to mental health services in 2025. In fact, 80% of business leaders in 2024 reported seeing improvements in workforce mental health due to increased investments.

- Employee demand for expanded mental health support: Even as employers have seen an uptick in the usage of existing mental health benefits (80% of business leaders reported increased usage), employees have made it clear that they want more. 95% of employees requested additional benefits, with 50% requesting additional care for adults and teens facing anxiety challenges, and 40% requesting additional remote and self-guided options.

- Personalized mental healthcare and role of AI: Experts predict that AI, digital therapeutics, and personalized approaches will redefine mental health care, enabling tailored, accessible solutions that meet individual needs. Nearly half of employers (49%) plan to invest more in AI technology to direct people to the care they need. However, AI integration needs to be approached with caution and address the issues related to data privacy, safety, bias, and clinical effectiveness.

- Move towards a prevention-forward approach: Prevention-forward, clinical-first mental health care is poised to become a cornerstone of workplace wellness strategies and broader societal approaches in 2025. Rather than only addressing mental health issues after they arise, the focus is shifting to building resilience and healthy coping skills and providing individuals with evidence-based, personalized tools to maintain mental wellbeing and de-escalate challenges before a crisis occurs.

A majority of business leaders (71%) consider employee mental health to be a priority at their organizations, and most of the leaders (87%) expect overall mental health in their workforce to improve in 2025. With 77% leaders attributing improvements in workforce mental health observed in 2024 to investments made, leaders plan to take advantage of the momentum, directing additional funding toward a broader range of mental health services, including AI-powered resources to help employees navigate their mental health needs more effectively.

“We live in very challenging times and societies around the world have an increased awareness of the importance of mental health”, said Dr. Oliver Harrison, CEO and Founder at Koa Health. “In 2025, this trend will continue to gain momentum, with accessible, high-quality, and affordable mental health services in greater demand than ever. Increasingly savvy buyers will review the evidence behind mental health solutions and ensure that technology platforms have the highest standards of data security.”

As businesses continue to prioritize mental health, the landscape is evolving. The insights from our survey underscore a clear need for flexible mental health support that is accessible, inclusive, and tailored to meet diverse employee needs. Companies that act quickly to address these needs will not only improve employee wellbeing but also foster better engagement, productivity, and retention.

About Koa Health
A leading global mental health services provider, Koa Health is revolutionizing mental health care with clinical-first care pathways developed and validated by renowned experts. Grounded in clinical excellence, and available to 4 million users worldwide, Koa Health’s comprehensive care solution, Koa Care 360 delivers all-in-one mental health care—self-care and prevention through clinical treatment—to employees and population-level insights to employers and health plans from a unified platform.

Backed by leading investors such as Morningside, Ancora Finance Group, Wellington Partners Life Sciences, and MTIP, Koa Health has spent the past 8 years meticulously researching and validating our comprehensive care model, enabling industries and individuals to take ownership of mental health and transform lives for the better.

For more information about the survey and insights, please download Koa Health’s Workplace mental health trends 2025: Executive summary, or visit the Koa Health website.

Akash Agarwal
Koa Health
+91 98117 13953
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