New research from workplace mental health platform Modern Health suggests employers may need to rethink how mental health benefits are structured, with employees reporting that therapy is often used for everyday work stress, while coaching and manager support could address some of those needs earlier.
Therapy has become a familiar component of employer-sponsored mental health programs, but new research from Modern Health suggests the bigger challenge may be how employees are directed into care in the first place.
The workplace mental health platform surveyed 2,000 full-time employees at companies with at least 250 employees across the United States, United Kingdom, Mexico and Singapore. All respondents had used or were currently using therapy. The findings point to a growing gap between clinical care and the broader range of emotional, behavioral and workplace challenges employees bring to benefits programs.
Modern Health found that 88% of respondents said therapy met their needs, but 60% said it felt more intensive than what they actually required. The company argues that therapy is increasingly being used as a catch-all response to problems ranging from normal workplace frustration to the need for someone to talk to.
That has implications for employers as healthcare costs continue to rise. Business Group on Health projects U.S. employer healthcare costs will increase 9.2% in 2027, putting additional pressure on benefits leaders to manage utilization while maintaining access to appropriate care.
The Modern Health research suggests some of that pressure may be connected to how mental health programs are designed. Seventy-one percent of respondents said workplace stress contributed to their need for therapy or coaching. Among that group, 51% said all or most of their stress could have been addressed by a manager through clearer communication, more reasonable workloads or better leadership.
Yet 35% said they sought therapy or coaching for workplace stress instead of speaking with their manager or HR. Reported barriers included concerns that managers were too focused on productivity, discomfort discussing emotional issues at work and a lack of manager training.
That creates a challenge for HR technology and employee wellbeing platforms. A digital mental health benefit cannot necessarily solve problems that originate in workload, leadership or organizational culture.
The research also highlights the changing role of coaching. Eighty-three percent of respondents said some issues they had taken to therapy could have been addressed through coaching. Seventy-two percent said they would use a workplace coach instead of therapy if that option were available, while 85% said having access to both would be helpful.
Modern Health’s model therefore reflects a broader move toward stepped or differentiated mental health support, where employees can access different forms of help depending on their needs. The company says coaching can address areas such as everyday stress, work-life balance, habits, confidence and accountability, while therapy remains appropriate for clinical needs.
Technology companies including Modern Health, Lyra Health and Spring Health have built platforms around employer-sponsored behavioral health access, combining digital experiences with provider networks and different forms of support. The competitive question is increasingly less about simply offering therapy and more about how effectively platforms connect employees with the appropriate level of care.
AI is adding another layer. Forty-three percent of respondents said anxiety about AI replacing their job or changing their role contributed to their need for therapy or coaching. At the same time, 68% said they would probably or definitely not trust AI to replace a therapist.
For enterprise HR teams, the findings point toward a more distributed approach to workforce wellbeing: clinical care where it is needed, coaching for non-clinical challenges, and stronger manager capability to address workplace stress at its source.
Market Landscape
Employer mental health technology has expanded from employee assistance programs into digital therapy, psychiatric care, coaching, wellbeing tools, provider navigation and broader employee experience platforms.
The next phase is increasingly about connecting those services rather than treating therapy as the only destination. Modern Health’s research reinforces the case for giving employees multiple support pathways while helping employers understand utilization and match resources to specific needs.
For HR leaders, adoption questions include clinical governance, privacy, provider quality, utilization patterns, manager training, employee engagement and the ability to distinguish workplace problems from clinical needs. Platforms competing in the category will also need to show that broader access does not simply translate into higher costs.
Top Insights
- Modern Health’s survey finds employees often use therapy for workplace stress and everyday challenges, raising questions about how employers structure mental health benefits.
- Seventy-one percent connected their need for therapy or coaching to workplace stress, while many said managers could have addressed the underlying problems.
- Coaching emerged as an underused support option, with employees linking it to stress management, work-life balance, confidence and professional development.
- AI-related job anxiety is becoming another source of workplace strain, although most respondents do not want AI replacing human therapists.
- Employers may increasingly combine therapy, coaching, manager training and prevention-oriented programs rather than relying on a single mental health pathway.
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