Please note: the following content was developed for educational purposes only and covers a wide variety of general workplace safety concerns and considerations, some not relevant to workers’ compensation or commercial auto coverage.
In today’s fast-paced and high-pressure work environment, mental health has increasingly become a critical focus for workplace safety. As small businesses face the growing challenges of stress, burnout, and mental health-related injuries, they’re beginning to recognize the profound impact that mental well-being has on employee productivity and overall business success. The results from Pie’s 2025 State of Workplace Safety Report which surveyed over 1,000 US small businesses, as defined by 2-500 employees, highlight some shocking statistics that reveal just how significant mental health risks have become and provide actionable insights for improving workplace safety.
Traditionally, workplace safety has been associated with physical hazards, such as slips, trips, falls, and equipment accidents. However, Pie’s latest survey findings demonstrate a significant shift in how small businesses are approaching safety. In fact, a notable 46% of small businesses identified mental health as the greatest workplace safety risk. This marks a significant departure from the past when physical injuries and workplace accidents dominated safety concerns.
This growing recognition of mental health as a safety risk comes at a time when small businesses are grappling with the far-reaching consequences of stress, burnout, and mental health-related injuries. These issues are not only affecting employees' well-being but also impacting productivity and company performance. In the past, employers may have downplayed the significance of mental health in the workplace, but this trend is rapidly changing as more and more companies embrace a holistic view of safety.
One of the most startling findings of Pie’s 2025 State of Workplace Safety Report is the significant rise in workplace injuries attributed to mental health and stress-related issues. A staggering 22% of workplace injuries were reported to be linked to mental health challenges, marking a 9% increase from 2024. These mental health-related injuries now surpass more traditional hazards like slips, trips, and falls, which accounted for 20% of workplace injuries.
This increase in stress-related injuries is a wake-up call for employers to take proactive steps in addressing mental health risks within their organizations. The physical and emotional toll of stress and burnout can lead to a range of health issues, from chronic fatigue to anxiety and depression. These mental health challenges not only hurt employees can disrupt business operations, cause absenteeism, reduce productivity, and decrease morale.
The data from the report underscores the urgent need for small businesses to recognize the link between mental health and workplace safety. With the rise in mental health-related injuries, employers must reevaluate their safety protocols to address both physical and psychological hazards.
While many small businesses express confidence in their ability to address mental health risks, Pie’s 2025 State of Workplace Safety Report reveals a concerning gap between confidence and actual preparedness. A whopping 91% of small businesses claim to feel confident in their ability to manage mental health risks. However, only 52% of small businesses have formal mental health safety protocols in place. This disparity highlights a significant issue: while employers may believe they are equipped to handle mental health challenges, many are still lacking the necessary structures and resources to do so effectively.
This confidence versus capability gap is one of the most pressing concerns identified in the report. It suggests that while many small businesses recognize the importance of mental health, they have yet to implement the necessary measures to help support the well-being of their employees. Without formal protocols in place, companies are left more vulnerable to the negative effects of mental health challenges, which can lead to increased workplace injuries, absenteeism, and turnover.
According to the report, 39% of respondents identified underestimating mental health risks as the most dangerous safety trend impacting small businesses today. This finding speaks to the continuing stigma surrounding mental health in many workplaces. Despite growing awareness of the importance of mental health, many organizations still fail to prioritize it when developing safety protocols. As a result, employees may not feel comfortable seeking help for mental health challenges, leading to undiagnosed issues that can escalate into more serious health problems.
This oversight can have far-reaching consequences. Mental health issues, when left unaddressed, can lead to chronic stress, anxiety, depression, and even physical health problems such as heart disease. By underestimating the importance of mental health, employers are putting their employees—and their business—at risk.
Pie’s 2025 State of Workplace Safety Report also revealed interesting differences in how businesses of various sizes are addressing mental health risks. Larger companies (51–500 employees) are leading the way, with 60% reporting that they have mental health safety protocols in place. In contrast, mid-sized businesses (11–50 employees) and small teams (2–10 employees) lag behind, with only 45% and 40% of companies, respectively, having formal mental health safety protocols.
This trend highlights the challenges that small and mid-sized businesses face in implementing mental health safety measures. While larger companies may have more resources to invest in mental health programs and protocols, smaller businesses may struggle with the financial and logistical aspects of mental health safety. However, this gap also presents an opportunity for small and mid-sized businesses to learn from larger organizations and take proactive steps to improve mental health safety in their workplaces.
Despite the challenges, Pie’s 2025 State of Workplace Safety Report provides a glimmer of hope, as 71% of companies indicated that they plan to introduce or expand mental health safety measures in the near future. This is a positive sign that small businesses are beginning to take mental health seriously and are committed to creating safer, healthier work environments for their employees.
To close the mental health safety gap and improve overall workplace well-being, small businesses could consider implementing the following strategies:
One of the most effective ways to address mental health risks is by creating formal mental health and stress protocols. These protocols should include clear guidelines for identifying and addressing mental health issues, as well as providing support for employees who may be struggling. Training managers to recognize the signs of stress and burnout is also crucial, as they play a key role in supporting employees and creating a safe, open environment.
Employee Assistance Programs (EAPs) are a valuable resource for small businesses looking to support their employees' mental health. These programs provide confidential counseling and support services to help employees manage stress, anxiety, and other mental health challenges. By offering EAPs, small businesses can help employees access resources that can support their well-being.
Creating an open culture where employees feel comfortable discussing mental health is essential for reducing stigma and encouraging individuals to seek help when needed. Employers should actively promote mental health awareness and create a supportive environment where employees are not afraid to speak up about their struggles.
In addition to formal protocols and EAPs, small businesses can also provide resources to help employees manage stress and improve their overall well-being. This could include offering flexible work arrangements, wellness programs, mindfulness sessions, or access to mental health apps. Encouraging a healthy work-life balance and promoting self-care are also important components of a comprehensive mental health strategy.
There are several valuable resources that small businesses can utilize to support mental health in the workplace:
Additionally, the Centers for Disease Control and Prevention (CDC) and the National Institute for Occupational Safety and Health (NIOSH) report that mental health conditions are among the leading causes of absenteeism and lost productivity. Employers can use this data to underscore the importance of mental health in the workplace and justify the need for mental health safety measures.
The results from Pie’s 2025 State of Workplace Safety Report underscore the growing importance of addressing mental health as a critical component of workplace safety. The rise in mental health-related injuries, coupled with the confidence versus capability gap, highlights the urgent need for small businesses to implement formal mental health protocols and support systems. By taking proactive steps to address mental health risks, companies can create safer, healthier, and more productive work environments for their employees. The time to act is now.
Thanks for reading! This content is intended for educational purposes only and does not imply coverage under workers’ compensation or other insurance offered through Pie Insurance Services, Inc. Please consult an agent or attorney for any questions regarding applicability of insurance coverage in all circumstances.
