Should You Offer Mental Health Days for Employees?
Mental health days for employees are dedicated paid or unpaid days off specifically designed to help workers recharge their mental and emotional well-being, prevent burnout, and maintain productivity—with 21.5% of workers ranking them as the top stress-relief benefit above flexible hours or gym memberships.
As the founder of Complete Controller, I’ve witnessed the real toll that relentless deadlines and financial pressures take on talented professionals. After implementing mental health days in our cloud-based bookkeeping firm, we saw turnover drop by 25% and client satisfaction scores jump significantly. This guide walks you through the hard data, implementation strategies, and potential pitfalls of offering mental health days—giving you the insights needed to decide if this benefit aligns with your business goals and company culture.
What exactly are mental health days for employees and why do they matter?
- Mental health days for employees are designated paid or unpaid time off specifically for mental wellness, distinct from vacation or sick leave, allowing workers to address stress, anxiety, or burnout before it impacts performance
- These days differ from traditional PTO by removing stigma—employees can take them proactively without needing to be physically ill or provide detailed explanations
- Companies typically offer 3-5 floating mental health days annually that employees can use when they recognize warning signs of overwhelm or emotional exhaustion
- The practice addresses workplace burnout that costs U.S. companies approximately $5.04 million per 1,000 employees annually in lost productivity
- Implementation requires clear policies, manager training, and cultural shifts to normalize mental wellness as essential to business success
The Proven Benefits of Mental Health Days for Employees
Mental health days deliver measurable gains for both employees and employers by addressing burnout proactively. The data shows these benefits extend far beyond simple time off, creating ripple effects throughout organizational performance.
Reduced absenteeism and presenteeism costs
Employee burnout costs between $3,999 and $20,683 per employee annually, depending on job level—with executives costing companies five times more than hourly workers when burnout strikes. Mental health days interrupt this expensive cycle by giving employees structured recovery time before reaching critical burnout levels.
Presenteeism—when employees show up but operate at reduced capacity—accounts for even greater losses than absenteeism. Studies indicate that workers experiencing mental health challenges lose an average of 84 productive days per year. By offering mental health days, companies see immediate reductions in both unplanned absences and zombie-like presenteeism.
Boosted productivity and retention
Organizations implementing comprehensive mental health benefits, including dedicated mental health days, achieve an impressive 2.3:1 return on investment. For every dollar spent on mental health initiatives, companies save $2.30 in total medical spending and productivity gains.
The retention impact proves equally compelling:
- 79% of professionals stay longer at companies offering robust mental health support
- Post-mental health day returns show renewed focus and creative problem-solving
- Teams report stronger collaboration when colleagues return refreshed
At Complete Controller, our mental health days policy transformed not just individual performance but team dynamics. Bookkeepers who previously pushed through tax season exhaustion now pace themselves better, delivering higher-quality work throughout the year.
Improved physical and emotional well-being
Mental health days address the mind-body connection that traditional sick days often miss. Stress manifests physically through:
- Chronic headaches and migraines
- Sleep disruption and insomnia
- Digestive issues and appetite changes
- Weakened immune response
When employees take proactive mental health days, they report better sleep quality, reduced physical symptoms, and improved emotional regulation. This creates a positive feedback loop—healthier employees need fewer sick days overall, further boosting productivity.
Potential Drawbacks of Offering Mental Health Days and How to Avoid Them
While mental health days offer substantial benefits, implementation challenges exist. Smart policies and proactive management strategies can minimize these concerns.
Risk of policy abuse or stigma
Despite growing awareness, only 23% of employees feel comfortable discussing mental health with managers. This stigma creates a paradox—companies offer the benefit, but workers fear using it might damage their careers.
Additional concerns include:
- Perception of weakness or inability to handle job demands
- Fear of being passed over for promotions
- Worry about burdening teammates with extra work
Combat these challenges through:
- Leadership modeling: When executives openly take mental health days, it normalizes the practice
- Clear guidelines: Specify acceptable use without being overly restrictive
- No-questions-asked policies: Treat mental health days like sick days—minimal justification required
Implementation challenges for small businesses
Small businesses, particularly service firms like bookkeeping companies, face unique obstacles. Tight client deadlines and lean staffing make coverage difficult when employees take unexpected time off.
Solutions that work for smaller teams:
- Cap mental health days at 3-5 annually with advance notice when possible
- Create coverage protocols pairing team members for backup support
- Use cloud-based systems enabling seamless handoffs
- Schedule company-wide mental health days during slower periods
At Complete Controller, we integrated our mental health days with our cloud infrastructure. Team members can quickly transfer urgent tasks, and clients experience no service disruption.
Case Study: How Companies Succeed with Mental Health Days
Real-world implementation provides the best roadmap for success. Two standout examples show different approaches yielding powerful results.
Mental health foundation’s 32-hour workweek success
The Mental Health Foundation in the UK piloted a revolutionary approach from April 2024 to April 2025, reducing work hours to 32 per week with zero pay reduction. This model mirrors the restorative effect of mental health days but spreads the benefit across every week.
Results exceeded expectations:
- 69% of staff reported reduced work-related stress
- 68% experienced improved mental wellbeing
- 79% achieved better work-life balance
- 55% maintained or improved productivity levels
The foundation permanently adopted the model, earning Gold Standard accreditation from the 4 Day Week Foundation. This demonstrates that structured time for mental wellness—whether as dedicated days or reduced hours—pays dividends.
Complete Controller’s mental health day implementation
Our journey began after noticing alarming turnover rates during busy seasons. We implemented a tiered approach:
- Five floating mental health days annually
- Manager discretion to grant additional days during high-stress periods
- Quarterly company-wide mental wellness days
- Integration with existing wellness programs
Within one year, we measured:
- 25% reduction in turnover
- 33% productivity increase post-mental health days
- 90% employee satisfaction with the program
- Zero negative client feedback regarding service delays
How to Implement Mental Health Days for Employees: A Step-by-Step Guide
Creating an effective mental health days policy requires careful planning and stakeholder buy-in. Follow these proven steps tailored for service-based businesses.
Evaluate your workplace and survey employees
Start with anonymous surveys to gauge current mental health challenges. Key questions include:
- How often do you feel overwhelmed at work?
- Would dedicated mental health days help you perform better?
- What barriers prevent you from addressing mental health needs?
Look for burnout indicators:
- Rising absenteeism patterns
- Declining engagement scores
- Increased errors or quality issues
- Higher healthcare utilization
Design your policy… floating days vs. scheduled
Choose between two primary models:
Floating Days Model:
- Employees choose when to use days
- Requires 24-48 hour notice except emergencies
- Works well for diverse teams with varying stress cycles
Scheduled Days Model:
- Company designates specific mental health days
- Everyone disconnects simultaneously
- Ideal for preventing email/work creep on days off
Most companies start with 3-5 days annually, separate from PTO. Consider allowing rollover of 1-2 unused days to prevent year-end rushing.
Secure legal buy-in and train managers
Consult legal counsel to align policies with local regulations. Key considerations:
- Classification as paid vs. unpaid time
- Documentation requirements
- Integration with FMLA or disability policies
- Equal access across employee classifications
Manager training proves critical for success. Teach supervisors to:
- Recognize early burnout signs
- Respond supportively to mental health day requests
- Model healthy behavior by using days themselves
- Plan coverage without guilting employees
Launch, communicate, and monitor metrics
Roll out your program with fanfare this signals organizational commitment. Communication channels include:
- All-hands meetings explaining the why behind the policy
- Employee handbook updates with clear procedures
- FAQ documents addressing common concerns
- Success stories from early adopters
Track these metrics quarterly:
- Usage rates by department
- Employee satisfaction scores
- Productivity measures pre/post implementation
- Turnover and absenteeism changes
- Healthcare cost trends
Support your people, scale your business.
Complete Controller.
Mental Health Days in Small Businesses: Lessons from Bookkeeping and Finance
Service industries face unique mental health challenges. Bookkeeping and finance professionals juggle multiple client demands, regulatory deadlines, and the pressure of handling others’ money.
Tailoring for high-pressure teams
Financial services teams experience stress differently than other industries:
- Tax season creates predictable high-stress periods
- Month-end closings generate recurring pressure
- Regulatory changes require constant adaptation
- Client emergencies demand immediate response
Successful adaptations include:
- Blackout dates only for absolute deadline periods
- Buddy systems ensuring coverage
- Rotating mental health days during slower periods
- Technology enabling remote check-ins if needed
Cost-benefit math for SMB owners
Small business owners often worry about implementation costs. Consider this breakdown for a 10-person bookkeeping firm:
Costs:
- 5 days × 10 employees = 50 days of paid time
- Temporary coverage or overtime: $5,000-$10,000 annually
- Training and communication: One-time $2,000 investment
Benefits:
- Reduced turnover saves $15,000+ per retained employee
- 10-20% productivity gains worth $50,000+ annually
- Lower healthcare costs from reduced stress claims
- Competitive advantage in tight labor markets
The math clearly favors implementation, with most firms seeing positive ROI within six months.
Integrating Mental Health Days into Broader Wellness Strategies
Mental health days work best as part of comprehensive wellness initiatives. Standalone policies without cultural support often fail to achieve full potential.
Building a burnout-proof culture
Creating psychological safety amplifies mental health day effectiveness. Workers experiencing high psychological safety are 2.2 times more likely to report excellent mental health and show 61% lower workplace stress.
Essential cultural elements:
- Open communication about mental health challenges
- Regular check-ins beyond performance reviews
- Celebration of work-life balance achievements
- Resources for ongoing mental health support
Combine mental health days with:
- Employee Assistance Programs (EAPs)
- Meditation or mindfulness apps
- Flexible work arrangements
- Professional development opportunities
- Regular team-building activities
Leadership modeling sets the tone
Nothing validates mental health days more than seeing leaders use them. When executives openly discuss taking time for mental wellness, it:
- Removes stigma around utilization
- Demonstrates organizational commitment
- Encourages middle managers to follow suit
- Creates permission for all employees
Share stories of leadership mental health days in company communications. Normalize statements like “I’m taking a mental health day Friday to recharge after this project push.”
Final Thoughts
Offering mental health days for employees represents both smart business strategy and compassionate leadership. The data speaks clearly—organizations investing in mental wellness see returns through reduced turnover, higher productivity, and improved employee satisfaction. With burnout costing companies millions annually, prevention through mental health days offers remarkable ROI.
At Complete Controller, implementing mental health days transformed our workplace culture and business results. Our teams now bring their best selves to client work, knowing they have permission to recharge when needed. The initial investment in policy development and cultural change paid for itself many times over through retention and performance improvements.
Start your mental health days journey today. Survey your team, craft a simple policy, and watch engagement soar. Your employees—and your bottom line—will thank you. For expert guidance on building healthier, more productive teams while managing your bookkeeping needs, visit Complete Controller where our team stands ready to support your business growth with both financial expertise and workplace wellness insights.
Frequently Asked Questions About Mental Health Days for Employees
What are mental health days for employees?
Mental health days for employees are designated paid or unpaid days off specifically for mental and emotional wellness, separate from vacation or sick time. They allow workers to proactively address stress, anxiety, or early burnout symptoms without stigma or detailed explanations.
Do mental health days improve productivity?
Yes, mental health days significantly boost long-term productivity by reducing presenteeism and burnout. Studies show up to 800% ROI on mental health initiatives, with employees returning refreshed and focused after taking these days.
How many mental health days should employers offer?
Most employers offer 3-5 floating mental health days annually, which balances employee wellness needs with business operations. Some companies add discretionary days during high-stress periods or offer company-wide mental health days quarterly.
What if employees abuse mental health days?
Clear policies requiring 24-48 hour notice (except emergencies), manager training on supportive responses, and leadership modeling appropriate use minimize abuse risks. Treating mental health days like sick leave—with trust rather than suspicion—builds positive culture.
Are mental health days legally required?
No, mental health days aren’t legally mandated in the U.S., but they align with growing employee expectations—76% of workers want more mental wellness support from employers. They may integrate with existing FMLA or state-specific leave laws.
Sources
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- Mental Health Foundation. “Study Shows 32-Hour Work Week Boosts Wellbeing Without Harming Productivity.” Mental Health Foundation News, April 2025, www.mentalhealth.org.uk/about-us/news/study-shows-32-hour-work-week-boosts-wellbeing-without-harming-productivity.
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- 4 Day Week. “Research.” 4 Day Week, 4dayweek.com/research/.