When companies prioritize mental health support, the benefits are clear. Teams bring more energy, managers stay focused, and individuals share their best ideas. Retention improves because employees want to stay where they feel supported. Productivity rises, not from pushing harder, but from working with clarity and balance.
Add caregiving support, and the impact deepens. When employees have help with a parent’s care plan, access to backup childcare, or a trusted coach to discuss their stress, the load becomes lighter. Companies see the results in stronger performance and reduced costs.
In this blog, we look at the ROI of employee mental health support, how it’s tied to caregiving support, and how, when offered together, they lead to both healthier people and stronger businesses.
Why mental health and caregiving belong in the same conversation
Declining mental health is widespread across today’s workforce, with anxiety and depression at historic highs. Challenges at work and at home both play a role. For working caregivers, the pressure is amplified:
34% say balancing care with work is their biggest source of stress.
Even the U.S. Surgeon General has called attention to this connection. In the 2024 Advisory on the Mental Health and Well-Being of Parents, the report found that one in three parents experience high levels of stress, and nearly half say their stress feels completely overwhelming most days. Caregiving strain is clearly a public health issue.
Nearly three-quarters of today’s workforce are caring for a child, partner, or aging loved one. Juggling those responsibilities often means sleepless nights, financial strain, and constant schedule changes. Over time, those pressures chip away at focus, energy, and well-being.
Mental health programs alone make a difference, but they don’t go far enough. Employees need day-to-day caregiving support — practical help that eases the load and addresses one of the biggest sources of workplace stress.
The cost of doing nothing
You don’t need a spreadsheet to know the toll: stress, burnout, and poor mental health drain people and profits alike.
Turnover is one of the biggest risks. One in five employees is considering leaving their company due to stress, anxiety, or burnout. Caregivers are especially vulnerable, with 75% of those planning to leave citing care commitments as a major factor. Every departure is expensive, costing organizations up to 200% of an employee’s salary in recruiting, training, and lost knowledge.
Absenteeism adds another layer. Missed care coverage leads directly to missed work. Globally, depression and anxiety account for an estimated 12 billion lost working days each year and $1 trillion in lost productivity. Even when employees show up, worry or ongoing stress can erode performance. Nearly half of employees with poor mental health say they are less focused at work, and more than a third report being less productive. Research shows it can also increase perceived barriers to accessing healthcare.
The financial impact doesn’t stop there. Untreated mental health conditions often drive 2.6 times higher healthcare costs, straining both employees and employers.
For more on these risks, see The Cost of Poor Employee Mental Health.
The ROI of mental health benefits for employees
In his report, the U.S. Surgeon General urges employers to expand policies and programs that support the well-being of parents and caregivers, including paid leave, flexible work schedules, and access to childcare and high-quality mental health care. That guidance reinforces what data shows: when companies prioritize mental health and caregiving together, the payoff is both human and financial.
Peer-reviewed studies show employers typically see a 2–3x return within the first year through reduced healthcare costs and improved productivity. Some programs report even greater gains—CuraLinc found a $5.39 return for every $1 invested when combining mental health services with organizational support.
When employees get timely mental health and caregiving support, companies save on medical claims, reduce absenteeism and turnover, and gain a workforce that shows up with more focus and energy.
- 80% of employees who receive mental health treatment report feeling more efficient and satisfied at work.
- 83% of employees say caregiving support from Cariloop helped them reduce stress and improve mental and emotional well-being.
And when organizations take a holistic approach, pairing mental health resources with caregiving benefits and flexible leave, studies like Prudential’s Benefits & Beyond report show loyalty grows stronger and employer reputation rises. Our research reveals 89% of employees view their employer more positively after receiving support.
See strategies in How to Improve Mental Health in the Workplace.
The indirect ROI: culture and employer brand
Not every return shows up on a balance sheet. When organizations invest in mental health and caregiving support, they send a clear message: people matter here. That message builds trust, lowers stigma, and encourages employees to speak up about challenges before they escalate into burnout.
The cultural payoff is powerful. Engaged employees are less likely to leave, more likely to recommend their employer, and more willing to go the extra mile. In fact, 77% of professionals say mental health support is a non-negotiable part of what makes a job good.
That visible commitment strengthens employer brand and shapes how both candidates and employees decide where to build their careers.
An investment that pays off
Mental health and caregiving aren’t separate challenges. They’re intertwined. A sleepless night with a newborn, navigating an aging parent’s care plan, or handling medical appointments for a loved one all affect employees’ mental health and how they perform at work.
Companies that invest in mental health and caregiving see lower costs, stronger retention, and healthier cultures. Cariloop helps employers create that advantage. With Coaching, Backup Care, and our Caregiver Support Platform, we reduce stress for employees and help businesses build resilient, high-performing teams.
Discover how Cariloop can help you support employee mental health and caregiving.