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Mental Health at Work: Wellness Fatigue vs. Reality

Content Team

Why CHRO Concern Is Falling, But the Problem Isn’t

As workforce stress climbs and employee expectations evolve, corporate concern for mental health appears to be slipping. In 2024, the American Psychological Association (APA) reported that more than 77% of workers experienced work-related stress, with nearly 3 in 5 describing negative impacts on their mental health. Additionally, 92% of employees indicated that it is very or somewhat important to work for an organization that values their emotional and psychological well-being, according to a 2023 study from the APA.

Yet, concern among HR leaders appears to be declining. According the 2024–2025 HRO Today CHRO Survey, sponsored by Hudson RPO, finds that concern for employee mental health has fallen significantly, dropping out of the top 5 priorities across North America and EMEA.

This disconnect raises a critical question: Is corporate wellness experiencing fatigue, or are we underestimating the sustained impact of mental health on performance, engagement, and retention?

The Stress Is Real And Persistent

Forbes recently did an article that stated, 66% of American employees are experiencing some sort of burnout in 2025, while 80% of the workforce will face burnout from workload and/or financial strain in the next year. These numbers don’t lie. Employees are still struggling, whether or not leadership acknowledges it.

As “mental health” shifts from a pandemic-era buzzword to background noise, organizations risk reverting to surface-level solutions. Yoga apps, monthly webinars, or free snacks are no longer cutting it. Employees are demanding structural changes, not superficial perks.

The Wellness Gap Is Widening

Despite the clear employee mandate, the CHRO survey reveals an emerging misalignment:

  • Only 45% of CHROs are “extremely” or “very” concerned about reducing employee stress and improving mental health, down from 71% in 2020.
  • Concern about retention has also dropped to 54%, despite high burnout and rising mobility.
  • In contrast, availability of skilled workers is now a top issue for 59% of CHROs globally; even more so in EMEA 73% compared to 55% in North America.

Meanwhile, burnout among HR professionals themselves is now the number 1 internal concern, with 41% of CHROs “extremely” or “very” concerned about fatigue across their departments. This concern is more acute in EMEA (52%) than in North America (38%).

“We are seeing a troubling trend where support structures are stretched thin. HR teams are overwhelmed, senior leaders are underprepared, and wellness is deprioritized at precisely the wrong time.”

From Perks to Policy: Evolving Mental Health Support

Traditional wellness perks no longer meet today’s needs. While engagement activities and time-off reminders still matter, leading organizations are shifting toward policy-driven changes that address systemic burnout. Companies seeing meaningful outcomes are integrating mental health into:.

  • Manager training
  • PTO policies
  • Workload and team capacity planning

Three things Progressive organizations are doing differently:

  1. Auditing their mental health offerings to ensure relevance and access.
  2. Normalizing mental health conversations across all levels of leadership.
  3. Linking mental health to business performance, not just HR metrics.

Mental Health Strategies That Stick

Instead of “adding” programs, some companies are rethinking the employee experience altogether. Successful strategies include:

  • Psychological safety training for people managers, ensuring leaders are equipped to spot and respond to burnout signs.
  • Unlimited or flexible PTO policies  with actual usage tracking, not just availability.
  • Employee-led resource groups (ERGs) focused on mental health advocacy and peer support.
  • Third-party mental health audits to identify gaps in current wellness strategies. And inform next steps.

The Reality Check

It’s time for HR leaders to reconcile the fading focus on mental health with the unyielding pressure employees continue to face. While corporate concern may be declining, the need for structured, scalable mental health strategies is not.

“You cannot solve burnout with a wellness app. You solve it by changing the way people work.”

What Organizations Should Do Now

Audit. Adapt. Act.

Here’s how CHROs and leadership teams can close the gap between wellness fatigue and workplace reality:

  1. Realign priorities with employee expectations around wellness, mental health, and work-life design.
  2. Empower senior leaders with future-ready tools to manage AI transitions and emotional resilience.
  3. Rebuild HR capacity with sustainable workloads, tech integration, and department-wide support.

Mental health can no longer be seen as a “soft” issue, rather it’s a strategic imperative tied to performance, retention, and employer brand. If your CHRO priorities don’t reflect what 92% of your workforce values most—mental well-being and psychological safety—then you’re not just misaligned. You’re at risk.

Hudson RPO can help.

Whether you’re facing talent shortages, overwhelmed HR teams, or outdated processes, Hudson provides practical, scalable solutions to build a healthier, high-performing workforce:

  • Outsource HR functions and candidate sourcing to alleviate overloaded internal teams and bring efficiency back to hiring. With expert support, your HR department can focus on strategy—not just survival.
    Explore HR Outsourcing →
  • Flex your workforce through agile, contingent workforce strategies that reduce burnout and provide relief for overstretched teams without compromising productivity.
    Explore Contingent Workforce Solutions →
  • Reimagine your hiring process with Hudson’s Talent Advisory services, ensuring every stage of recruitment is built with psychological safety, equity, and performance in mind.
    Explore Talent Advisory →

It’s time to move beyond wellness as a perk and treat it as a cornerstone of your workplace design. Let Hudson RPO help you create an environment where mental health isn’t just acknowledged—it’s actively supported.

Let us help you build a workplace where wellness isn’t a trend—it’s your competitive advantage.

To read more, download the full Hudson RPO sponsored report, 2025 HRO Today Annual Top Concerns of CHROs.  

Hudson RPO

Content Team

The Hudson RPO Content Team is made up of experts within the Talent Acquisition industry across the Americas, EMEA and APAC regions. They provide educational and critical business insights in the form of research reports, articles, news, videos, podcasts, and more. The team ensures high-quality content that helps all readers make talent decisions with confidence.

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