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Advice / Succeeding at Work / Management

How to Deal with an Employee with Mental Health Issues

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This may be a news flash to some: Managing mental health at work is a leadership issue.

Mental health challenges in the workplace aren’t just an individual’s problem. A stressed-out, burned-out, or disengaged employee can affect the entire team. Productivity drops, collaboration suffers, and suddenly, the workplace culture takes a hit.

“If a team member struggles, the workplace struggles,” says licensed psychotherapist Gary Tucker. “Everyone who surrounds a person with mental health issues feels the struggle and starts experiencing similar challenges.”

If you’re a leader, it’s not a question of if you’ll need to address mental health in your team—it’s when. And how you handle it will define the kind of leader you are.

You don’t have to be a therapist to be a supportive leader; being proactive makes a difference. Creating a mentally healthy workplace starts long before someone comes to you in crisis. In this article, we’ll talk about how to deal with employees with mental health issues.

Mental health at work: How to recognize struggles in your team

Most employees won’t come to you and say, “Hey boss, I’m struggling with my mental health.” In many cases, they might not even realize it themselves. That’s why recognizing the signs that someone may be struggling is so important.

  • Sudden drops in performance: Look for decreased productivity and work quality, Tucker says. “Usually, people stop caring about what they produce.” Perhaps a once high-achieving employee starts missing deadlines or making uncharacteristic mistakes.
  • Withdrawal from team interactions: Skipping meetings, avoiding collaboration, or seeming distant can be a red flag.
  • Increased irritability or mood swings: For example, someone who’s usually calm may start snapping at colleagues. “Their mood may change from fake happy to sad, they may become irritated by others, or may even stop taking care of their appearance, neglecting their hygiene or dressing inappropriately,” Tucker says.
  • Physical symptoms and absence: Listen for complaints of frequent headaches, stomachaches, or trouble sleeping, he says. “They may try to avoid the workplace by staying home more, or requesting more and more sick days.”
  • Loss of motivation: Employees who once brought energy to the team now seem disengaged or indifferent.

This doesn’t mean you should try to diagnose anyone. But if you notice these signs, it’s important to check in.

How to deal with employees with mental health problems

So, you’ve noticed something’s off. Now what? How should employers help employees with serious emotional problems? The worst thing you can do is ignore it.

Here’s how to handle an employee with mental health issues:

  • Start with a private, judgment-free conversation. Instead of jumping straight into “What’s wrong?” try: “I’ve noticed you seem a bit off lately. Is there anything I can do to support you?” Keep it open-ended and don’t push for details.
  • Offer flexibility where possible. If their workload is overwhelming, see if you can adjust deadlines or redistribute tasks. Small accommodations can make a big difference.
  • Encourage professional help—but don’t play therapist. You can’t diagnose or fix someone’s mental health, but it's your duty to remind them of resources like Employee Assistance Programs (EAPs) or counseling services.
  • Respect privacy. If they open up, great. But if they don’t want to share, that’s their right. You’re there to support, not to demand details.
  • Follow up. Don’t make it a one-time conversation. Check in a short while later with a simple, “Hey, how are you doing? Let me know if there’s anything I can do.” Small gestures go a long way.

How to improve mental health in the workplace—for proactive leaders

Don't wait for the ball to drop. Employees need to feel safe talking about their struggles before they’re in crisis mode. Be proactive, not reactive.

  • Normalize mental health conversations. Lead by example. Talk about mental health in team meetings. Share resources proactively.
  • Encourage work-life balance. Set the tone for healthy boundaries. If you’re sending emails at midnight, your team will feel pressured to do the same.
  • Provide mental health benefits. If your company offers EAPs, counseling, or wellness programs, make sure your team knows about them.

Employee mental health = team success

If you’re in a leadership position, mental health at work is your business. Ignoring it won’t make it go away, it will only make things worse. The best leaders don’t wait until a crisis happens to act. They create a culture where mental well-being is valued, respected, and supported. So, what kind of leader will you be?