How to create a psychologically healthy workplace
Clinically reviewed by Dr. Chris Mosunic, PhD, RD, CDCES, MBA
Everyone deserves to feel safe at work. Learn how to create a psychologically healthy workplace, its benefits, and examples of companies that have done it well.
We spend a huge part of our lives at work — around one-third, according to studies. That adds up to about 90,000 hours over a lifetime! Wild, right? So, of course, the way we feel at work can naturally have a massive impact on our wellbeing.
When a workplace feels stressful, overwhelming, or negative, it can take a toll on our mental health and happiness. Our physical health can also be affected when we work in a toxic work environment or don’t have enough boundaries in place to keep stress levels low. Not sure if you’re in a toxic work environment? Here are nine signs to look out for.
So what does a psychologically healthy workplace (PHWP) actually look like? It's one where you feel supported, safe, and valued. It's the combination of small practices, benefits, and behaviors that make your work experience positive. And, as most of us know, feeling good at work is super important — especially if you’ve ever experienced a chaotic work environment that made you dread getting out of bed each morning.
Whether you’re an employer wanting to support your employees, a manager looking to improve communication with your team, or an employee hoping to create positive change, understanding what makes a workplace healthy is the first step toward creating a better environment for everyone.
What is a psychologically healthy workplace?
A psychologically healthy workplace supports the mental and emotional wellbeing of employees. It’s an environment where employees can focus better, feel happy, stay motivated, and feel connected to their work. Here are a few examples of psychologically healthy workplace practices:
Respectful communication across all levels
Opportunities for growth and development
Focused on work-life balance
Support systems for mental health, like counseling or mental health days
A culture that reduces stigma around mental health issues
Employees feel safe, respected, and heard
7 benefits of a mentally healthy workplace
Looking out for your team’s mental health isn’t just great for them — it’s a win for the whole organization! Putting in the time, money, and energy really pays off, bringing big benefits for everyone, both now and in the long run.
Increased productivity: Employees who feel supported and valued are more likely to be motivated and perform at their best.
Lower staff turnover rates: People are less likely to leave jobs where they feel appreciated, respected, and safe. When this happens, the company saves money on hiring and training costs.
Fewer missed days: Employees in a healthy workplace are less likely to take sick days for mental or physical health issues, as stress and burnout levels tend to be lower.
Improved teamwork and communication: Employees can collaborate better and solve problems faster. And if workplace communication isn’t your forte, no stress — here are 13 tips on how to improve your communication.
Stronger employee engagement: Employees who feel mentally and emotionally supported are more likely to perform better and bring their best ideas to the table as they know their voice matters.
Higher job satisfaction: When employees feel mentally and emotionally supported, they likely have a positive attitude, better relationships with colleagues, and an overall enjoyable work experience.
Positive company culture: Discussing mental health and prioritizing wellbeing can help make the business a more desirable place to work — which can help attract and retain top talent.
13 examples of a psychologically healthy workplace
Every workplace is a bit different depending on the industry. But there are a few key ways you can identify signs of a psychologically healthy work environment. And while not every workplace can implement all these practices, it’s the mix of supportive measures that helps employees feel their best while they’re at work.
1. Open communication: Employees feel safe sharing their thoughts, concerns, and feedback without fear of judgment. Regular check-ins, open-door policies, or anonymous surveys mean employees can express how they’re feeling and what they need.
2. Flexible work arrangements: Flexible hours, remote work options, or hybrid schedules help employees maintain a better work-life balance, reducing stress and burnout. (Think you’re facing burnout? Here are 22 signs to look out for!)
3. Mental health resources: Free or subsidized access to confidential mental health services such as Employee Assistance Programs (EAPs), counseling services, or wellness programs make workers feel supported. Employee Resource Groups (ERGs) where staff can connect with colleagues who share similar experiences or challenges, can also bring mutual support and a sense of community. And, ongoing mental health education and training teaches employees about the signs of stress or burnout in themselves and others, and how to seek help.
4. Work-life balance support: Employees are encouraged to take breaks, use their vacation time, and fully disconnect from work during non-work hours. Leadership sets an example by respecting these boundaries and not expecting employees to be "always on." If you’re an employer, here’s how you can help employees with their work-life balance.
5. Respectful workplace culture: Staff are treated with respect and dignity at all levels. There’s zero tolerance for bullying, harassment, or discrimination, and issues are dealt with promptly and fairly.
6. Inclusive environment: Companies actively promote diversity and inclusion, so everyone feels they belong. Employees from all backgrounds and experiences are heard and valued.
7. Mental health days: Organizations offer paid mental health days, allowing employees to take time off when they need to focus on their wellbeing. This normalizes taking care of mental health and reduces stigma. Unsure how to take a mental health day or what to say to your manager? These 10 tips are here to help you plan.
8. Mindfulness and stress management programs: Programs such as mindfulness training, meditation sessions, or workshops help employees manage stress and improve emotional wellbeing. There may also be designated spaces where employees can take short breaks, meditate, or relax during the day.
9. Opportunities for growth and development: Access to training, mentorship, and professional development opportunities, helps employees learn new skills and feel a sense of career progression.
10. Recognition and appreciation: Employee achievements—large and small—are regularly acknowledged and celebrated through recognition programs, team celebrations, or simple thank-you notes.
11. Transparency and trust: Openness about decisions, policies, and expectations reduces uncertainty and helps employees feel more secure in their roles.
12. On-site or subsidized childcare: Access to on-site childcare, or financial assistance for childcare, helps working parents reduce stress and focus better at work.
13. Leadership modeling healthy behaviors: Managers and leaders demonstrate healthy work habits like setting boundaries, taking breaks, and being open about mental health challenges. This sets a positive tone for the rest of the team.
How to create a psychologically healthy workplace: 8 tips to support mental health at work
Creating a psychologically healthy workplace may seem like a tough task. But even small, thoughtful steps can make a huge difference in building an environment where employees feel mentally and emotionally supported.
It doesn’t require a huge budget or complex programs — just a genuine commitment to prioritizing mental health and wellbeing.
1. Encourage open communication among employees
Make it clear that employees are welcome to share their thoughts, concerns, and feedback without fear of being judged or ignored. Use regular one-on-one check-ins, team meetings, or anonymous surveys so employees can express how they’re feeling and what they need.
Leaders and managers should lead by example by being approachable and transparent with their teams. When people feel heard, it helps reduce stress and build trust, making it easier for them to seek help when needed.
💙 Learn how to practice Kind Communication in the workplace with help from Tamara Levitt.
2. Promote work-life balance
Encourage employees to set boundaries between work and personal life. Communicate that workers are expected to take breaks, use vacation time, and fully disconnect from work outside of office hours. (If you’re an employee nervous about implementing boundaries at work, these nine tips can help.)
Also an employer can offer flexible work hours or the option to work remotely to help employees manage personal responsibilities and reduce stress. When people feel like they can balance their work with the rest of their lives, they’re more likely to stay energized and engaged at work.
💙 Struggling to disconnect after a long day at work? This Shut Down Routine can help you end your workday in an intentional way.
3. Offer accessible mental health resources
Provide Employee Assistance Programs (EAPs) that offer counseling and support services or partner with mental health professionals to offer workshops and webinars.
Offer mental health days — paid time off specifically for employees to focus on their mental wellbeing.
Make sure employees know what resources are available and that they feel comfortable using them without stigma. Normalize mental health conversations in the workplace by discussing these resources regularly so employees see mental health as just as important as physical health.
4. Create a culture of respect and inclusion
Ensure everyone feels respected and valued, regardless of their role or background. Encourage a culture where bullying, harassment, and discrimination aren’t tolerated. Act quickly if these issues arise to show the company takes them seriously.
Promote diversity and inclusion by making sure all employees feel like their voices are heard and that they’re being treated fairly. When people feel they belong and are respected, they’re more likely to feel mentally safe and supported.
💙 Listen to this Calm Conversation on Pride & Resilience that explores navigating bringing your whole self to work.
5. Provide opportunities for growth and development
Help employees avoid feeling stuck or unappreciated by offering opportunities for personal and professional growth.
Offer training programs, mentorship, or leadership development, because when employees feel like they’re learning and growing, they’re more engaged and motivated.
Regularly recognize and celebrate employees’ achievements, both big and small. A simple thank you or recognition of someone’s hard work can boost morale and help people feel valued.
💙 Get tips from our Mindful Leadership Wisdom Series on how to become a better leader at work.
6. Encourage regular feedback and act on it
Set up systems where employees can easily share their thoughts on workload, workplace culture, or any challenges they’re facing. This might be through suggestion boxes, pulse surveys, or open forums.
And then, take action on the feedback you receive — whether that’s improving certain policies or addressing concerns directly. When employees see that their feedback leads to positive change, it can help build trust and make them feel their voices matter.
💙 Learn how to practice Mindful Listening in the workplace when your employees come to you with feedback.
7. Normalize breaks during work hours and self-care habits
Encourage employees to take regular breaks throughout the day, even if it’s just for a few minutes. Simple things like stepping away from the computer, taking a walk, or having lunch away from the desk can help reduce stress and improve focus.
Offer wellness rooms or quiet spaces where employees can take a mental health break when needed. Remind employees that self-care is essential for staying healthy and productive, and make it part of your company culture to support these small but important acts of care.
💙 Even if you’re the employer and not the employee, don’t forget to also give your brain a mini break and Step Away From the Computer in between meetings.
8. Lead by example
Demonstrate prioritizing mental health and healthy behaviors at management and board level. Bosses setting boundaries, taking breaks, and being open about their own challenges can send a powerful message to employees and help remove any stigma around mental health. This can make it easier for employees to follow too!
💙 Use meditation as a tool to connect with how you can learn to Lead Compassionately.
Psychologically healthy workplace FAQs
What are the signs of a psychologically unhealthy workplace?
A psychologically unhealthy workplace can show up through signs such as high stress and burnout among employees, frequent sick days, poor communication, high staff turnover rates, and lack of engagement.
These may suggest a toxic environment where employees feel undervalued and unsupported, which can increase the likelihood of mental health issues.
How does leadership impact a workplace’s psychological health?
Leadership significantly impacts workplace mental health by setting the tone and influencing how employees are treated.
Approachable and supportive leaders help nurture a positive environment, while distant or hostile leadership can lead to stress and burnout. And if your boss is currently giving you anxiety, here are six tips to help you cope.
Good leaders promote work-life balance, provide mental health resources, and ensure employees feel heard as this can create a healthier work culture.
What are the long-term effects of being in a psychologically unhealthy workplace?
Working in a mentally unhealthy environment can lead to serious long-term effects, including burnout, anxiety, and depression. Constant stress and lack of support not only impact employees' work performance but also their personal lives, causing sleep issues and physical health problems.
A negative atmosphere can affect self-esteem and confidence, ultimately pushing employees to seek new opportunities outside their current jobs — or even the entire industry.
How can small businesses create a mentally healthy environment?
Small businesses may lack the resources of larger companies, but they can still create supportive and mentally healthy environments. Use key strategies to demonstrate that employee mental health is a priority.
Encourage open communication, inviting employees to share their feelings by conducting regular check-ins.
Offer flexibility in work hours.
Cultivate a positive and inclusive culture to help employees feel valued.
Provide access to free or affordable mental health resources.
What role do employee feedback systems play in maintaining a healthy workplace?
Employee feedback systems are important in maintaining a mentally healthy workplace by giving employees a way to express their needs.
These systems can help management identify and address potential issues before they get bigger, such as workload concerns or workplace challenges. When employees see their feedback leading to real changes—like improved policies or better support—this helps build trust and shows that the company values their wellbeing.
Ongoing communication between employees and management can help create a supportive and responsive work environment.
Calm your mind. Change your life.
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