Integrating Mental Health Support into Performance Management Systems

Jan 5, 2024 | Performance Appraisals

photo of anxious female employee at office desk


In today’s fast-paced work environment, mental health has emerged as a critical aspect of overall employee wellbeing. While companies have traditionally focused on physical health and safety, there’s a growing recognition of the importance of mental wellbeing in the workplace. This blog explores the integration of mental health support into performance management systems, highlighting how tools like PerformanceHub can play a pivotal role in fostering employee wellbeing.



The Importance of Mental Health in the Workplace

Understanding Mental Health

Mental health refers to our emotional, psychological, and social wellbeing. It affects how we think, feel, and act, playing a crucial role in our ability to handle stress, relate to others, and make choices. In the context of the workplace, mental health is an umbrella term that includes everything from the day-to-day stress of job responsibilities to more severe conditions like anxiety, depression, or bipolar disorder.

The workplace can be a significant source of stress. Deadlines, workload, interpersonal relationships, and the ever-blurring lines between work and personal life contribute to employees’ mental health challenges. According to a recent survey, over 40% of employees report that their job negatively impacts their mental health. Yet, mental health issues often go unnoticed and untreated, partly due to the stigma attached to them.


Impact on Performance

The impact of mental health on performance is profound. Employees struggling with mental health issues may experience decreased concentration, fatigue, and a lack of motivation, directly impacting their productivity and the quality of their work. The World Health Organization estimates that depression and anxiety disorders cost the global economy $1 trillion per year in lost productivity.

However, it’s not just the economic cost that’s concerning. The human cost – in terms of deteriorated quality of life and the strain on relationships both in and outside of work – is equally significant. For instance, a study revealed that employees with unresolved depression experience a 35% reduction in productivity, affecting their ability to contribute effectively in the workplace.


Current Challenges in Addressing Mental Health

Stigma and Lack of Awareness

Despite the increasing acknowledgment of its importance, mental health in the workplace still carries a stigma. Employees often feel reluctant to speak about their mental health issues for fear of being judged, misunderstood, or risking their job security. This silence leads to a lack of awareness and understanding among colleagues and management, further perpetuating the stigma.

The challenge is also in identifying mental health issues. Unlike physical illnesses, symptoms of mental health problems can be subtle and easily overlooked. Without proper awareness and training, managers and coworkers may not recognise the signs or know how to approach someone who might be struggling.


Inadequate Support Systems

Many organisations still lack adequate support systems for mental health. Traditional employee assistance programs, while beneficial, often react to problems rather than proactively addressing them. Employees might not feel comfortable using these resources due to confidentiality concerns or simply not knowing they exist.

Furthermore, performance management systems in many companies are not equipped to consider the mental health aspect of employee wellbeing. This oversight can lead to unrealistic expectations and increased stress, exacerbating existing mental health issues.


Integrating Mental Health into Performance Management Systems

PerformanceHub as a Tool for Support

PerformanceHub offers a revolutionary approach to integrating mental health support into the fabric of performance management. This next-generation system doesn’t just track objectives and reviews; it’s designed to foster a holistic understanding of employee performance, including their mental wellbeing.

One of PerformanceHub’s key features is its ability to facilitate regular check-ins and feedback. These aren’t just about ticking boxes on performance objectives but are opportunities for managers to engage with employees on a deeper level. Through these interactions, managers can gauge stress levels, workload balance, and overall job satisfaction, which are critical indicators of mental health.

Additionally, PerformanceHub’s real-time objective tracking allows for a dynamic adjustment of goals. If an employee is experiencing mental health challenges, managers can modify objectives to make them more achievable, thereby reducing stress and providing a sense of accomplishment. This adaptability is crucial in supporting employees’ mental wellbeing.


Practical Strategies for Integration

To effectively integrate mental health support into your performance management process using PerformanceHub, consider the following strategies:

  1. Objective Setting with Wellbeing in Mind: When setting objectives, factor in the mental wellbeing of employees. Objectives should be challenging yet achievable, without causing undue stress or pressure.
  2. Use Appraisals as Opportunities for Support: Transform appraisal discussions into platforms for open conversations about mental health. Encourage honesty and offer support or adjustments to workloads and objectives as needed.
  3. Regular 1-to-1 Meetings: Leverage 1-to-1 meetings to check in on employees’ mental wellbeing. These meetings can be used to identify early signs of stress or burnout and to provide support or resources.
  4. Training for Managers: Provide training for managers on recognising the signs of mental health issues and how to approach sensitive conversations. Empower them with the skills to support their team members effectively.
  5. Encourage a Culture of Openness: Foster an organisational culture that encourages openness about mental health. This can be facilitated through PerformanceHub by normalising discussions around mental wellbeing in the context of performance management.


Benefits of a Holistic Approach

For Employees

Integrating mental health support into performance management systems has significant benefits for employees. It leads to improved mental health and wellbeing, as they feel supported and understood in their workplace. This support can enhance engagement, job satisfaction, and loyalty to the company.

When employees know that their mental health is a priority, they are more likely to be open about their challenges, leading to early intervention and support. This openness can reduce the likelihood of long-term absence due to mental health issues and can improve overall job performance.


For Organisations

For organisations, the benefits are equally compelling. A holistic approach to performance management that includes mental health support leads to increased productivity and reduced absenteeism. Employees who are mentally well are more focused, motivated, and productive.

Moreover, integrating mental health into performance management helps build a supportive and inclusive culture. This not only enhances the company’s reputation as an employer of choice but also contributes to retaining top talent. In the long term, it positions the company as a forward-thinking, employee-centric organisation.


Case Studies and Success Stories

Illustrating the effectiveness of integrating mental health support into performance management systems, several case studies and success stories shed light on the positive impact of this approach.

Case Study 1: A Tech Company’s Transformation

  • Background: A mid-sized tech company faced high stress levels among employees, leading to burnout and turnover.
  • Intervention: They implemented PerformanceHub, focusing on regular mental health check-ins during performance reviews and setting realistic objectives.
  • Outcome: There was a notable improvement in employee morale, a decrease in absenteeism, and enhanced overall productivity.


Case Study 2: Retail Chain’s Approach to Employee Wellbeing

  • Background: A national retail chain struggled with employee engagement and high stress during peak seasons.
  • Intervention: By using PerformanceHub, they trained managers to recognize signs of mental strain and adjusted performance objectives dynamically.
  • Outcome: Employees reported feeling more supported, and the company saw an improvement in customer service ratings and a reduction in staff turnover.


Success Story: Healthcare Sector

  • Overview: A healthcare provider used PerformanceHub to support staff during the demanding pandemic period.
  • Strategy: Emphasis was placed on flexible objectives, acknowledging the extraordinary circumstances, and frequent, supportive 1-to-1 conversations.
  • Result: Staff reported feeling valued and understood, leading to increased job satisfaction and resilience in a highly stressful environment.

These examples demonstrate that when performance management systems are aligned with mental health support, the results can be transformative for both employees and organisations.



The integration of mental health support into performance management systems is not just a trend; it’s a vital shift towards more humane and effective organisational practices. In today’s world, acknowledging and supporting mental health in the workplace is essential for the wellbeing of employees and the success of businesses.

PerformanceHub offers a platform that not only streamlines performance management but also opens doors to a more holistic approach to employee wellbeing. By incorporating mental health considerations into regular performance processes, organisations can create a more supportive, productive, and engaged workforce.

We encourage companies to embrace this integrated approach and explore how tools like PerformanceHub can make a significant difference in the lives of their employees and the overall health of their organisation.


Additional Resources

For more information on mental health in the workplace and how PerformanceHub can help, consider exploring the following resources:

PerformanceHub performance management software

Employee Performance Management Software

Get a feel for PerformanceHub with a demo

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