For decades, the lure of careers within the tech sector has attracted some of the world's brightest minds. Tech companies historically set the "gold standard" for top workplaces, as employees sought leaders' cutting-edge vision and the chance to build revolutionary technology. Beyond earning a reputation as a people-first industry, tech also seemed relatively immune from reorganization cycles. However, widespread layoffs have triggered a jolt across the sector and a reckoning among leaders.
When the pandemic disrupted daily life, tech was initially able to grow. Now, macroeconomic changes — inflation, bank failures, and recessionary speculation — have fueled a change in investor sentiment. In response, many leaders have focused on near-term profitability to attract and retain investors, returning to a playbook of restructuring, cost initiatives and workforce reductions. New disruptors alongside long-established players — from Uber and Airbnb to Alphabet and Microsoft — have deeply cut staff.
For the over 350,000 tech workers who have been laid off since 2022, this environment can be uncharted territory; a mix of personal, career, and mental health challenges. Losing a job can deal a blow to one's self-esteem and financial stability — many feel a sense of loss as they grapple with suddenly new circumstances. Workers may reassess their ambitions, while navigating a competitive job market flooded with former colleagues. Also, the pandemic has hamstrung our ability to plan ahead, with such uncertainty taking a toll on mental health.
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While the plight of laid off employees is evident, the struggle for those who remain is often under-appreciated. Workers carry survivor's guilt, as they see colleagues lose their livelihoods while they continue to be employed. This load is compounded by knowing that leaders are relying on them to deliver, yet with fewer people. In turn, employers often see a spike in absenteeism and requests for mental health resources to cope. The consequences of not addressing the needs of an anxious workforce can sink morale, impact turnover and decrease productivity.
Real help within reach
Astute leaders understand the strategic need to support employee resilience amidst turbulence. In fact, data from Willis Towers Watson show that 67% of U.S. employers are planning to prioritize employee mental health programs and solutions over the next three years. And 81% of employees surveyed by the American Psychological Association overwhelmingly agreed that mental health support will be a key consideration as they evaluate future employers.
But how can leaders increase mental health resources when cost pressures are so mighty? Despite a mental health care system struggling to keep pace with unprecedented demand, viable treatment options, via digital therapeutics, remain available and surprisingly underutilized.
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Digital therapeutics are software-based care interventions employees can self-access that treat, cure, or prevent a medical disease or condition — offering leaders a cost effective, evidence-based modality for addressing employee needs at scale. These powerful tools can deliver clinically proven treatments digitally, personalizing care that patients can access anytime, anywhere. Leveraging familiar technologies employees already use to track their steps, nutrition and more, digital therapeutics can also address gaps in care for mental health conditions, from insomnia to anxiety and others.
Determine the most effective digital benefit for employees
There are important distinctions between the benefits of digital therapeutics and the growing assortment of wellness apps on the market. Though each supports mental health and well-being, digital therapeutics are required to demonstrate how their treatments align with industry standards of care, such as cognitive behavioral therapy (CBT), and are backed by evidence showing meaningful outcomes.
For example, digital therapeutics have been clinically validated in a large-scale research environment, just as a new medicine would be, to prove their safety and effectiveness as a treatment. They are typically covered as a health care benefit, regulated, and reimbursed similar to a prescription drug or other medical claim. Digital therapeutics are also accessible, with little-to-no out-of-pocket cost to employees.
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While wellness apps offer helpful approaches like meditation exercises, they are not subject to the same rigorous scientific scrutiny needed to demonstrate efficacy. As such, employers are wise to exercise caution when considering which digital tools will benefit their workforce, meaningfully improve employee health, and support higher productivity.
Tech is primed to lead
Unsurprisingly, tech companies are leading digital therapeutics adoption as an employee benefit. They recognize the value of a tech-enabled, scalable care delivery model and how convenient access to effective care can unleash productivity. Also, tech employees are well-suited to access and benefit from these new approaches.
These affordable, new care modalities are easily deployed across matrixed organizations and disparate geographies to provide an evidence-based way to support and improve employee mental health. More benefits leaders are discovering that digital therapeutics offer powerful ways to improve employee well-being and promote recruitment and retention.
Today's environment is a clarion call for leaders to help their employees navigate – and thrive – during change. By supporting employees' mental health and embracing digital therapeutics, leaders can build a healthier, more resilient workforce to fuel growth for years to come.
