Our portfolio company, WinCup, was highlighted in the Atlanta Journal-Constitution for their revolutionary efforts to halt the global plastic crisis.
The article provides more information about how the Phade Straw works, and how this signature product of theirs is an industry game-changer.
WinCup is a forward-thinking company that understands that many of our old methods of environmental consciousness are outdated and inadequate. Atar is honored and proud to have them profiled in this piece, and we are excited to see where their journey will go next.
Our founder and managing partner, Cyrus Nikou has been highlighted as a top “Leader of Influence” by the LA Business Journal, as well as receiving the honor of being one of the 500 most influential people in all of Los Angeles, also by the LA Business Journal.
The LA Business Journal is a highly respected publication in the business world. So much so that earlier this month, they received a Silver award for Best Newspaper at a nationwide, independently-judged journalism competition.
We are honored to have our very own Cyrus Nikou highlighted in these ways, as it gives vindication and public exposure to our holistic growth as a firm since opening our doors in 2016.
We can’t wait for what the future holds for Atar, and we are lucky to be led by one of the best in the business.
Los Angeles, CA—May 10, 2022—Atar Capital, a global private investment firm, announced a sixth acquisition through its portfolio company, Pathways Health and Community Support, LLC (Pathways), with the closing of Psychological Assessment & Intervention Services, Inc. (PAIS). The definitive agreement for the acquisition was originally signed in December 2021. This acquisition allows Pathways to expand its footprint into West Virginia where PAIS currently serves clients in 29 out of 55 counties that are supported by 7 regional offices. Terms of the agreement were not disclosed.
PAIS offers person-centered home and community-based services, including direct services and case management for individuals with developmental disabilities (IDD) and their families, along with psychological assessment and general outpatient therapy services for children and adults. The organization’s programs and services align well with those offered by Pathways, making it possible for Pathways to offer a broader range of behavioral health services in more communities.
Pathways has an active presence in 20 states and the District of Columbia. Led by Jill Winters, Pathways’ CEO, the organization employs a team of 5,000+ dedicated staff members working to create healthier communities with programs that include counseling, IDD, telehealth, autism, case management, therapeutic foster care, parent education, supportive employment and substance use. The company also offers employer-based programs through Pathways at Work, a series of customized workplace health and well-being seminars, webinars and other resources for employees.
Winters said, “Atar Capital’s continued guidance and investment in our growth is making it possible for Pathways to broaden the scope of essential behavioral health and wellness services across the country for people struggling with critical life challenges. We look forward to expanding those resources with this latest acquisition.”
Cyrus Nikou, founder and managing partner of Atar Capital, said, “We continue to be excited about the growth prospects ahead for Pathways. This latest acquisition of PAIS, in addition to the five other bolt-on companies acquired for Pathways over the past two years, significantly expands the organization’s footprint and range of services. It is a clear testament to Atar Capital’s mission and commitment to supporting the growth of its portfolio companies.”
Atar’s investment team for the transaction included Atar Capital’s Founder and Managing Partner Cyrus Nikou, Senior Managing Director Robert Lezec, Managing Directors Stanley Huang and Vijay Mony and Director T.J. McCaffrey. Dykema provided legal counsel to Atar Capital.
About Atar Capital Atar Capital’s combination of operational expertise, industry knowledge and investment experience provide a unique edge in creating value and working as a true partner with its portfolio companies. The firm assists in activities ranging from growing the business to improving operations and financial performance, leveraging all available resources and talent within Atar’s leadership team, as well as its bench of seasoned senior advisors with deep sector and functional expertise. For more information, please visit www.atarcapital.com.
About Pathways Pathways Health and Community Support, LLC is one of the largest providers of behavioral and mental health services in the United States. Originally founded in 1997 as Providence Service Corporation, and subsequently acquired by Atar Capital in 2018, Pathways’ mission is to improve the lives of people by inspiring personal growth, health and wellness. The organization offers a full spectrum of social services and behavioral health solutions, including mental health support, youth and family services, adult services and prevention services, to clients in their homes or through telehealth and community-based resources. The company also offers employer-based programs to help employees manage stress, anxiety and other behavioral health challenges through Pathways at Work,a series of customized workplace health and well-being seminars, webinars and other resources for employees.
Detroit, Michigan – March 15, 2022 – Solero Technologies, a leading global supplier of transmission solenoids, engine solenoids, stop-start accumulators, and hydraulic control modules, has hired Dr. Donald R. James as the company’s new CEO. Dr. James will oversee Solero Technologies’ sales and engineering center in Detroit, as well as manufacturing operations in Water Valley, Mississippi. Additionally, he will be responsible for the strategic direction of the company and ensuring long-term profitable growth. Don will be based in Michigan with the team in Detroit.
Solero Technologies, formerly BorgWarner North American Controls, was acquired by Atar Capital in December 2021. Ramzi Hermiz, a transformational automotive industry leader, served as interim CEO since that time and will continue with the company as a Board Director.
“Don’s years of success in business and technology along with his extensive automotive industry experience will make him a tremendous asset to the Solero Technologies team,” said Hermiz. “His expertise will be critical to driving greater innovation within Solero, expanding our reach to new markets and maintaining our commitment to sustainability.” Dr. James has more than 24 years of leadership experience in the automotive industry,
domestically and abroad. Prior to joining Solero Technologies, he served as the president of the Americas and an executive committee member at Joyson Safety Systems, where he facilitated the merger of Takata and Key Safety Systems into Joyson, while developing strategic initiatives to drive profitability and growth.
In addition, Don served in a variety of leadership positions at Continental AG in both North America and Europe; most recently as vice president of North America for the company’s Hydraulic Brake Systems. At Continental, he led the launch of new facilities in Mexico and established the company’s commercial vehicle market strategy leading to substantial market growth. He was awarded two Silver Awards; one for ‘Top Turnaround Project in North America’ and the other for ‘Excellence in Project Management & New Business Development’.
“With Solero’s strong reputation of product innovation and manufacturing, I am excited to work with our employees, customers, suppliers and community to elevate Solero’s product reach within and outside the automotive industry,” added Dr. James.
Don earned a bachelor’s in economics from the University of Michigan; and both a master’s in business administration and a doctorate in business administration and sustainability from Lawrence Technological University.
About Solero Technologies Solero Technologies is a leading global supplier of transmission solenoids, engine solenoids, stop-start accumulators, and hydraulic control modules. Our capabilities include advanced design, prototyping, development, and manufacturing combined with a strong intellectual property portfolio across product categories. We have built an acclaimed reputation for developing and delivering quality solenoid products to automotive OEMs, the aftermarket and other industrial sectors. Our industry-leading solenoid products are critical to the optimal performance of vehicles today and tomorrow. The company operates from its manufacturing facility in Water Valley, Mississippi, along with related sales and engineering operations in Detroit. Visit www.solerotechnologies.com for more information.
Water Valley, Mississippi – Feb. 8, 2022 – BorgWarner’s North American Controls business, acquired by Atar Capital on December 31, 2021, has been renamed Solero Technologies, effective immediately. The business is a leading global supplier of transmission solenoids, engine solenoids, stop-start accumulators, and hydraulic control modules. The Water Valley, Mississippi manufacturing site, along with related sales and engineering operations in Detroit, will now operate under the Solero Technologies corporate identity, a name inspired by the company’s products and innovative solutions for a cleaner environment.
Earlier today, the new name was revealed to employees and local dignitaries in a ceremony at the Water Valley facility. Board Director and Interim CEO Ramzi Hermiz and Atar Capital Founder and Managing Partner Cyrus Nikou spoke about the new name and its meaning, and the future vision for the company.
“The Solero Technologies name is inspired by our iconic product. Together, the name and brand reinforce the energy and collaboration that Solero Technologies brings to all we do,” said Hermiz. “The logo’s interlocking rings honor the solenoid’s coils and highlight the importance of our communities and partnerships.”
In developing the new name, the Atar Capital team brought together a broad cross-functional team from both Water Valley and Detroit to provide input on the company’s heritage, core values, current market position and future vision. The Water Valley facility has served the automotive industry for more than 50 years, starting as a Ram Tool Plant, later purchased by Holley Carburetor Company. The facility was acquired by BorgWarner in 1996.
“Our new operations, independent of BorgWarner, allow us to have a singular focus on growing our solenoid business across existing and new markets,” added Hermiz. “Our customers trust in our highly-skilled team members to provide solenoid solutions for their complex design challenges. We work in partnership with these customers to achieve the highest level of efficiency and product performance.”
Atar Capital is a Los Angeles-based global private investment firm that prioritizes companies that are socially and environmentally conscious.
“Solero Technologies primarily serves the automotive industry today. Our products and technologies will benefit other systems to operate smoother and more efficiently, expanding the impact of our core offerings, in the future,” said Nikou. “We look forward to exploring opportunities for our products with electric vehicles, commercial vehicles, industrial applications and other applications related to fluid flow control.”
Solero Technologies employs more than 450 individuals in both Water Valley and Detroit. It is the largest employer in Mississippi’s Yalobusha County, where the Water Valley facility resides.
“The Water Valley community has a strong and talented workforce. The work ethic of the community has allowed for continued transformation of the business, and we look forward to continuing to build upon the facility’s strong reputation,” said Hermiz.
Solero Technologies plans to continue its Water Valley facility’s involvement with the local community through a variety of philanthropic donations and activities supporting local schools, veterans and underprivileged individuals.
About Solero Technologies Solero Technologies is a leading global supplier of transmission solenoids, engine solenoids, stop-start accumulators, and hydraulic control modules. Our capabilities include advanced design, prototyping, development and manufacturing combined with a strong intellectual property portfolio across product categories. We have built an acclaimed reputation for developing and delivering quality solenoid products to automotive OEMs, the aftermarket and other industrial sectors. Our industry-leading solenoid products are critical to the optimal performance of vehicles today and tomorrow. The company operates from its manufacturing facility in Water Valley, Mississippi, along with related sales and engineering operations in Detroit. Visit www.solerotechnologies.com for more information.
About Atar Capital Atar Capital is a global private investment firm that acquires a wide range of lower middle market businesses exhibiting opportunities for growth, revitalization and significant value creation. Atar Capital’s principals have completed more than eighty-five private equity transactions across North America, Europe and South America.
Atar Capital’s combination of operational expertise, industry knowledge and investment experience provide a unique edge in creating value and working as a true partner with its portfolio companies. The firm assists in activities ranging from growing the business to improving operations and financial performance, leveraging all available resources and talent within Atar’s leadership team, as well as its bench of seasoned senior advisors with deep sector and functional expertise. For more information, please visit www.atarcapital.com.
CEO: Acquisition Will Bring Stabilization And Transformation
WATER VALLEY – A Los Angeles-based global private investment firm has purchased the BorgWarner plant in Water Valley and related operations. ATAR Capital announced in a press release on Jan. 6 that it had completed a carveout acquisition of BorgWarner’s North American Controls business, a wholly-owned and operated division of BorgWarner. The transaction was completed on December 31, 2021.
The acquisition includes the Water Valley manufacturing site along with related sales and engineering operations in Detroit, Mich. The business is a leading supplier of transmission solenoids, engine solenoids, start-stop accumulators, and hydraulic control modules throughout North America. The news first circulated in the community on Jan 4 as ATAR Capital’s leadership team meet with workers on all three shifts at the Water Valley plant. “The leadership team with ATAR was right here last week when we were announcing it,” reported interim CEO Ramzi Hermiz. “Cyrus Nikou, the founder of ATAR Capital, was here communicating with workers on all three shifts”.
BorgWarner announced the sale as part of the company’s accelerated electrification strategy expected to bring the company’s electric vehicle revenue from less than three percent of total revenue in 2021 to approximately 45 percent in 2030. Also outlined in this strategy by BorgWarner is a target to dispose of $3 billion to $4 billion in annual revenues from its internal combustion engine portfolio by 2025, with approximately $1 billion of that targeted to be executed by late 2022. BorgWarner’s new strategy created an opportunity for ATAR Capital, Hermiz explained in an interview with the Herald Monday afternoon.
“When we looked at what is happening in Water Valley, we see a business that is performing very well. It has a strong and talented workforce, has success in the market, and has a strong reputation,” Hermiz reported. The interim CEO noted that the products produced in Water Valley make an internal combustion engine more efficient, greener, and better for the environment. “We see the ability to expand,” Hermiz added.
The focus of the expansion includes both increasing the company’s market share of products already in production at the plant and developing future technology for engines and high-speed transmissions that will increase the fuel efficiency of internal combustion engines. “But also if you look at electric vehicles (EV), there are applications of controlling fluid flow. Maybe not an automatic transmission, but there is battery cooling and other activities – we still feel that this product has a life and opportunity,” Hermiz explained about current production. “We talk about going to an EV environment, and we will, but there are also hybrid electrics. There are all these other versions of electrifications.”
Transforming the Company
Hermiz shared ATAR Capital is not approaching the management of the plant as a major restructuring initiative, and instead, the goal is to transform it into a higher growth company. “Frankly under the prior ownership, the business wasn’t being invested in. They had it in a decline, which is partly why they wanted to exit. But we see it as an opportunity for growth,” he reiterated. The CEO also cautioned that the company is not immune to the current challenges in the automotive industry with supply chain interruptions, commodity price increases, and the global chip shortage that impacts the overall volume of vehicles produced. “I would say we are sized for what the market will be and continue to go on that path,” he added about the current workforce.
With the acquisition, ATAR purchased existing contracts serving blue-chip automotive and commercial vehicle OEMs (original equipment manufacturer) including Cummings Engine, Ford Motor Company, General Motors, and Stellantis. Hermiz also provided insight about the lag time between quoting applications for new businesses and production. “We will quote something this year, but not go into production for a couple of years. There is a valley you have to go through to come out on the other end. But that being said, we are going to look for opportunistic growth opportunities. We are primarily automotive, but we believe there are still more opportunities in commercial vehicles and industrial applications, even water vehicles,” Hermiz added.
LOS ANGELES — January 6, 2022 — Atar Capital, a Los Angeles-based global private investment firm, announced today it has completed the carve-out acquisition of BorgWarner’s North American Controls (BWNAC) business, a wholly owned and operated division of BorgWarner (NYSE: BWA). Headquartered in Detroit, Michigan, with manufacturing located in Water Valley, Mississippi, the business is a leading supplier of transmission solenoids, engine solenoids, stop-start accumulators and hydraulic control modules throughout North America.
Cyrus Nikou, founder and managing partner of Atar Capital, said, “Atar is excited to complete this carve- out with BorgWarner and acquire such an impressive world-class operation. As a standalone company, BWNAC will focus on a growth and diversification strategy, leveraging its market-leading position serving blue-chip automotive and commercial vehicle OEMs, such as Cummins Engine, Ford Motor Company, General Motors and Stellantis.”
Through this acquisition, Atar Capital confirms the appointment of automotive industry veteran, Ramzi Hermiz, as a Board Member of BWNAC and interim CEO, while the search for a permanent CEO is conducted. Hermiz was formerly a Board Member and CEO of Shiloh Industries and held several executive and C-level positions during his 22 years at Federal-Mogul Corporation.
“Atar Capital could not be more excited about the opportunities that lie ahead for the new company,” said Vijay Mony, managing director at Atar Capital. “We welcome Ramzi as a Board Member and thank him for stepping in as the interim CEO, leading the transition of BWNAC to a standalone company. We believe combining an experienced leader like Ramzi with the engineering and manufacturing expertise of BWNAC will help create new opportunities and further the company’s leadership position in the market.”
Atar’s investment team for the transaction included Founder and Managing Partner Cyrus Nikou, Senior Managing Director Robert Lezec, Managing Directors Stanley Huang and Vijay Mony, Director T.J. McCaffrey and Vice President Roman Zelinsky. Dykema provided legal counsel, Ducker International provided market analysis and BDO supplied quality earnings, information technology and general operations transaction support.
About Atar Capital Atar Capital is a global private investment firm that acquires a wide range of lower middle market businesses exhibiting opportunities for growth, revitalization and significant value creation. Atar Capital’s principals have completed more than eighty-five private equity transactions across North America, Europe and South America.
Atar Capital’s combination of operational expertise, industry knowledge and investment experience provide a unique edge in creating value and working as a true partner with its portfolio companies. The firm assists in activities ranging from growing the business to improving operations and financial performance, leveraging all available resources and talent within Atar’s leadership team, as well as its bench of seasoned senior advisors with deep sector and functional expertise. For more information, please visit www.atarcapital.com
Los Angeles, CA—January 4, 2022—Atar Capital, a global private investment firm, announced the fifth acquisition in fewer than two years through its portfolio company, Pathways Health and Community Support, LLC (Pathways), with the closing of Human Resource Training, Inc. (HRT), a provider of foster care and social services to families and youth in the central and northern regions of Arizona. This acquisition extends Pathways’ current footprint in Arizona from eight to twelve counties and augments services in two of Arizona’s largest counties, Maricopa and Pima. Atar Capital acquired Pathways in 2018 as part of a strategy to put the firm’s cross-functional expertise to work in a critical and fast-growing segment in the healthcare space. Terms of the agreement were not disclosed.
HRT was incorporated in 1981 offering services as a small therapeutic foster care program. Today, the organization provides services to traditional, medically complex and therapeutic foster care homes. In addition, HRT offers parenting skills programs and services for the developmentally disabled population.
Pathways, led by CEO Jill Winters, is one of the largest providers of behavioral and mental health services in the United States. With its diversity in location, Pathways serves clients in 18 states and the District of Columbia, employing a team of 5,000+ dedicated staff members working across the country to create healthier communities by providing behavioral health services that include counseling, telehealth, autism services, case management, therapeutic foster care, parent education, supportive employment and substance use services. The company also offers employer-based programs through Pathways at Work, a series of customized workplace health and well-being seminars, webinars and other resources for employees.
Winters said, “The support and expertise of Atar Capital guided our acquisition strategy and assures we have the resources necessary to expand our services into new communities.”
Atar’s investment team for the transaction included Founder and Managing Partner of Atar Capital Cyrus Nikou, Senior Managing Director Robert Lezec, Managing Directors Stanley Huang and Vijay Mony and Vice President Roman Zelinsky. Dykema provided legal counsel to Atar Capital.
About Atar Capital Atar Capital is a global private investment firm that acquires a wide range of lower middle market businesses exhibiting opportunities for growth, revitalization and significant value creation. Atar Capital’s principals have completed more than 80 private equity transactions across North America, Europe and South America.
Atar Capital’s combination of operational expertise, industry knowledge and investment experience provide a unique edge in creating value and working as a true partner with its portfolio companies. The firm assists in activities ranging from growing the business to improving operations and financial performance, leveraging all available resources and talent within Atar’s leadership team, as well as its bench of seasoned senior advisors with deep sector and functional expertise. For more information, please visit www.atarcapital.com.
About Pathways Pathways Health and Community Support, LLC is one of the largest providers of behavioral and mental health services in the United States. Originally founded in 1997 as Providence Service Corporation, and subsequently acquired by Atar Capital in 2018, Pathways’ mission is to improve the lives of people by inspiring personal growth, health and wellness. The organization offers a full spectrum of social services and behavioral health solutions, including mental health support, youth and family services, adult services and prevention services, to clients in their homes or through telehealth and community-based resources.
The company also offers employer-based programs to help employees manage stress, anxiety and other behavioral health challenges through Pathways at Work, a series of customized workplace health and well-being seminars, webinars and other resources for employees. For more information visit www.pathways.com.
LOS ANGELES— December 8, 2021 – Atar Capital, a Los Angeles-based global private investment firm, announced today that it has entered into a definitive agreement to sell RWS Facility Services (RWS) to Quest Resource Holding Corporation (NASDAQ: QRHC) (Quest), a national leader in environmental waste and recycling services.
RWS delivers innovative hands-on managed solutions for waste management, commodity recycling and facilities services. Its base of blue-chip national and regional customers includes big-box retailers, quick service restaurants (QSRs), industrial manufacturers, retail centers, enclosed and open-air malls and mixed-used multi-tenant properties. RWS is dedicated to providing incremental commodity revenue streams for its customers by utilizing its innovative asset-light service model. RWS is headquartered in Chadds Ford, Pennsylvania with offices across the United States.
Atar Capital acquired RWS in September 2017. Under Atar Capital’s ownership, RWS achieved significant revenue and profitability growth through a focus on diversifying the company’s range of services and addressable end markets. The company improved its core business processes, relying on a distributed workforce and significant investments in back-office technology. RWS further developed its business through the acquisition of Sustainable Solutions Group (SSG) in 2019, providing expansion into the real estate investment trust (REIT) industry. In addition, RWS expanded its service offerings to provide a host of managed facility and building services to its portfolio of existing customers, including HVAC, engineering maintenance and landscaping, among other services. All these impressive accomplishments resulted in exceptional year-over-year financial performance.
Commenting on the sale of the company, Cyrus Nikou, founder of Atar Capital, said, “In just four years, RWS showed an unprecedented momentum in diversifying its business, expanding its service lines and increasing its customer base. We are extremely proud of these accomplishments in partnership with this talented group of individuals.”
“Our partnership with Atar Capital has been invaluable. They played a crucial role in helping us shape and grow the business into one that offers the highest quality of facility management services across the nation,” said Anthony DiIenno, president and CEO of RWS. “We look forward to the opportunities the new ownership will offer our talented teams and valued clients.”
Robert Lezec, senior managing director of Atar Capital, added, “We are pleased to have acquired and owned this exceptional asset and are proud of the progress that RWS achieved over the past four years. We were particularly impressed by the resilience and dedication of the RWS team through the COVID-19 pandemic to ensure the company remained an essential service provider to many large and small corporate, retail and industrial businesses throughout the nation.”
Atar’s investment team for the transaction included Nikou, Lezec, Managing Directors Stanley Huang and Vijay Mony and Vice President Roman Zelinsky. Dykema provided legal counsel to Atar Capital and TM Capital served as the exclusive sell-side financial advisor in the transaction.
About Atar Capital
Atar Capital is a global private investment firm that acquires a wide range of lower middle market businesses exhibiting opportunities for growth, revitalization and significant value creation. Atar Capital’s principals have completed more than 75 private equity transactions across North America, Europe and South America.
Atar Capital’s combination of operational expertise, industry knowledge and investment experience provide a unique edge in creating value and working as a true partner with its portfolio companies. The firm assists in activities ranging from growing the business to improving operations and financial performance, leveraging all available resources and talent within Atar’s leadership team, as well as its bench of seasoned senior advisors with deep sector and functional expertise. For more information, please visit www.atarcapital.com.
About Quest Resource Holding Corporation
Quest is a national provider of waste and recycling services that help businesses excel in achieving their environmental and sustainability goals and responsibilities. Quest delivers focused expertise across multiple industry sectors to build single-source, client-specific solutions that generate quantifiable business and sustainability results. Addressing a wide variety of waste streams and recyclables, Quest provides information and data that tracks and reports the environmental results of Quest’s services, gives actionable data to improve business operations, and enables Quest’s clients to excel in their business and sustainability responsibilities. For more information, visit www.qrhc.com.
Get insight into employee’s greatest mental and behavioral health concerns from the past year.
Introduction
We began the year with a renewed hope of recovery and a path forward with increased vaccination availability, reopenings, and for some, a return to the office. This year, we have primarily focused on the process of recovery in the wake of last year’s unprecedented challenges. Reflecting on last year and the progress we’ve made since, while remarkable, has revealed a new set of challenges as we adjust to a new sense of normalcy.
Last March, the onset of COVID-19 changed the way we operated as business leaders and as people. Few of us felt prepared to lead the charge through what became a year of unimaginable circumstances. Yet, as new restrictions, policies, and information came into play, we adapted quickly and remained flexible in our decision-making. It was a year of profound loss demanding steadfast resilience, both from our people and ourselves.
Within one crisis arose many, with political and social issues reshaping our perspectives and the landscape of American culture. We became better critical thinkers and more empathetic toward one another, as each of us found ourselves uniquely challenged by the circumstances of 2020. Last year’s hardships, in hindsight, showcase the resilience shown by each of us as we continue to emerge from a once-in-a-lifetime crisis.
As business leaders, it is our responsibility to lead our recovery efforts for our people and our organizations. The first six months of this year required us to be flexible as we emerged from a challenging year and found hope in opportunities to support those we lead.
Between September 2020 and May 2021, we surveyed 2200+ employees from various industries and businesses across the U.S., including finance, advertising, marketing, I.T., accounting, facilities management, and education. Our survey results revealed that a majority of American workers are still grappling with the impact of last year’s events. As such, the response to last year’s hardships has not been acute or limited and persists at significant rates across all verticals.
We’re presenting the following data and insights for other business leaders to get a glimpse of the current state of mental health among American workers. In this year’s report, we hope to illuminate the persistent struggles of employees regarding their mental health at work and offer insights into how we as leaders can better support our people.
CHAPTER 1
Four Leading Factors of Poor Employee Mental Health: Stress, Anxiety, Fatigue, and Burnout
Among the employee concerns reported, our findings revealed striking and persistent stress, fatigue, anxiety, and burnout among employees surveyed. These four factors are closely related and often contribute to one another in a workplace setting. The initial numbers reported by employees in December 2020 were alarming but expected during the second pandemic wave. However, the initial escalation in employee reports of stress, fatigue, anxiety, and burnout remained consistent throughout our survey. Thus, despite improvements in disease prevention and vaccination rates, employees reported the same level of stress, fatigue, anxiety, and burnout that they did at the height of the pandemic.
For employers, this means that the psychological effects of the pandemic will persist long beyond the cessation of infection. These persistent levels of stress, fatigue, anxiety, and burnout will ultimately hurt employee productivity, engagement, morale, and retention. Moreover, our findings revealed little to no change in the occurrence of these mental health concerns, which means employers should prepare for the long-term prevalence of employee stress, fatigue, anxiety, and burnout.
CHAPTER 2
The Workplace Impact of Poor Employee Mental Health
Understanding how stress, anxiety, fatigue, and burnout present themselves within the workplace context is fundamental to a complete picture of employee wellness. The incidents of increased stress, anxiety, fatigue, and burnout result in adverse outcomes in the workplace, specifically around performance.
The sustained levels of sleep disturbances recorded among employees in our study indicate that employees are likely experiencing performance issues as a result. With employees reporting high levels of stress, anxiety, and burnout, incidents of communication issues, work conflict, misconduct, or mistrust are likely to materialize at a higher rate.
To capture the impact of the four critical mental health issues employees reported, we collected data regarding their productivity, ability to manage conflicts, and building trust in the workplace. Unsurprisingly, employees reported elevated levels of concern across all three categories, with a slight dip from 2020 to 2021.
The small decline is likely due to the economic and financial gains that have led to a more promising job market, less concern over layoffs, and improvements to job security. Despite the progress from last year, the occurrence rates remain high. More than 60% of all employees surveyed reported concern over productivity, managing conflicts, and building trust at work in 2021.
CHAPTER 3
How Employees’ Personal Lives Impact Work
The multifaceted nature of COVID-19’s impact was pervasive in employees’ work and personal lives, causing unique effects that stem from multiple contributing stressors. The far-reaching consequences of the pandemic influenced personal relationships, family relations, living situations, finances, resources, and health. Ultimately, employees bring their personal circumstances to work, and those external factors influence their productivity and interactions with others.
The transition to remote work eroded routines related to work-life balance, where there became little delineation between the office and the home. Parents and caregivers were impacted substantially by school closures and inaccessible care brought on by the pandemic.
Struggling with personal relationships, isolation, feelings of loneliness, boredom, anxiety, and depression were common complaints last year. These factors led to new incidents of substance use disorders and caused relapses among those working toward sobriety. In addition, recreational activities that once served as means of self-care and wellness were largely unavailable during the pandemic, such as gyms and places of worship. As a result, healthy coping mechanisms and activities that were once readily available were no longer in place to curtail the emotional and mental health toll of COVID-19. The reduction in healthy outlets and increased external stressors ultimately impacted the workplace: how well employees work and how well they work with others.
Personal stress and a poor work-life balance come at the cost of employers. Presenteeism refers to the lost productivity when present employees are not fully functioning because of stressful life events, illness, or injury. Employees’ increased concern with work-life balance, managing stressful life events, managing depression, and preventing substance misuse often leads to presenteeism. The estimated cost of presenteeism amounts to $180 billion annually for U.S. companies, 34% more than absenteeism.
CHAPTER 4
The Onset & Ongoing Effect of COVID-19 on Employee Mental Health
Reflecting on COVID-19 and analyzing employee reports provides perspective on recovery efforts and supporting employees in a post-pandemic work environment. The changes to work and everyday life were profound and introduced many challenges and stressors that employees are still coping with today. However, data collected from our employee survey reveals positive trends in pandemic-related categories, providing insights into employee resilience and adaptability throughout the pandemic and initial recovery.
While adapting to remote work was challenging for most, 2021 reporting illustrates marked improvements in employees’ comfort with working remotely. Additionally, employees had lower levels of financial stress in the first and second quarters of 2021, reflecting the improved economic conditions in recent months.
While these trends are encouraging, supporting employees after COVID-19 depends on addressing the issues they struggled with the most. 20% of employee respondents reported they were coping poorly with the effects of the pandemic in 2020. Inadequate coping mechanisms and unhealthy habits developed throughout the pandemic will not immediately disappear upon infection rate improvements. Learning to work remotely successfully was only half the battle— 10% of employees reported being very concerned with isolation and loneliness throughout the pandemic.
Challenges of social isolation will undoubtedly have a lasting impact on employees, regardless of whether they stay remote or return to the office. Following a year of isolation, social interactions are likely to cause anxiety among adults. Vaccinated adults have not returned to pre-pandemic levels of socialization, which indicates long-term implications due to prolonged isolation. Employees will likely have to grapple with the behavioral and mental health implications of COVID-19 for years to come. Employers will be responsible for creating a post-pandemic work environment that addresses the events of 2020 by taking a stance on employee wellness that considers the long-term impacts of the pandemic.
CHAPTER 5
Racism and Social Injustice Concerns
COVID-19 was not the only pandemic that disrupted everyday life in 2020. By June, a second pandemic permeated the lives of Americans— institutionalized racism and social injustice. The murders of George Floyd, Breonna Taylor, and others sparked public outrage and nationwide protests, bringing attention to the pervasive issue of racism in America.
While the issue of police violence against Black Americans was central to the protests, the conversation about racism in America included the disproportionate impact COVID-19 had on minority populations and raised historically buried sentiment about systemic racism. Thus, the dual pandemics proved to be a multifaceted issue, highlighting the intersection of social issues, public health, and racial inequality in the U.S.
While the conversation about racism and social injustice in America was long overdue, it compounded existing mental health challenges, especially for people of color. Racial trauma has psychological and physical consequences, including intense anxiety, depression, distress, distractibility, and avoidance related to the stressor, and increased occurrences of cardiovascular disease and hypertension.
Employees across all ethnic and racial identities expressed mental health concerns due to the social injustices of 2020. Most employees reported racism and social injustice as a top concern in 2020, a trend that has continued into 2021. The following metrics highlight employee perspectives on the social and racial injustices of 2020, noting the continued level of concern in recent months.
Conclusion
Overall, the data collected in 2021, compared to 2020, indicates recovery trends and improvements in employee mental health. Our employee well-being metrics reflect the strength and determination of our team members and their need for additional support. While the impact of COVID-19 variants on employee mental health remains to be seen, positive employee well-being trends may plateau due to prolonged pandemic conditions. Nevertheless, the data paints a picture of what our employees need now and how we, as employers, can prepare to support our team members should the pandemic persist.
We remain encouraged by the data’s implications. Namely, the resilience employees have exhibited over the past two years. Recognizing employees’ demonstrations of flexibility, tenacity, and strength in the face of unprecedented challenges will be paramount to our collective recovery efforts.
The positive trends captured by our survey are encouraging, and we will continue to collect employee data to assess how developments in the COVID-19 pandemic influence workplace mental health. One thing is certain when looking at our data: addressing mental health has become imperative in the workplace, and employers should prepare to support employee mental health for the foreseeable future.
After reviewing survey responses, it’s clear that we can do more for our employees’ well-being regardless of what the future holds, whether it’s stress management, mental health resources, or conversations that reduce stigma around mental illness. In the long term, our efforts to help employees become mentally healthy now will help them cope in the future, should we endure further uncertainty due to the pandemic or struggle to grapple with its impact as we recover. Unfortunately, the limited information about long-term effects and delayed onset of mental health concerns point to a slow recovery. As a result, employees will need ongoing mental health support for years to come.
While our report included data from a wide range of participants and across several industries, mental health data about COVID-19’s impact is still generally limited. It will take experts years to collect data and report their findings of how the pandemic impacted our emotional well-being. Understanding the full scope of the pandemic’s impact on our mental health will also be delayed by the emergence of new COVID-19 variants. In the meantime, employers can focus on what we do know.
While employees have improved their ability to manage negative emotions, most employees would benefit from additional mental health support. To recruit talent, increase retention, and cultivate a healthy company culture, business leaders should prioritize mental health and well-being initiatives that address employees’ future and existing needs. While we grapple with more uncertainty and prolonged pandemic conditions, our employees will depend on our support to cope effectively.
A productive and well-rounded workforce depends on leaderships’ ability to respond thoughtfully to the current state of employee mental health.
