In recent times, there has been a greater cognizance of the importance of mental health and the organizations must also start recognizing the needs of employees for a better workplace environment so they can be at their maximum efficiency. There are various reasons why employee starts developing mental health problems in their workplace. The reasons could be personal like dealing with a difficult boss or organizational like a merger or takeovers. These mental health problems in turn reflect on their work performance in a negative manner. From impulsive and reckless actions in the workplace to lower efficiency while working on their projects, the employee's mental health can affect both their own performance and the entire dynamic of the organization. Employers should be considerate towards employees’ mental health not only for the purpose of increasing the overall productivity of the organization but also for humanitarian reasons. They can achieve a healthier workplace environment through employee assistance programs, mental health first aid kits, and flexible working conditions. COVID-19 has been one of the major reasons for the deteriorating mental health of the employees and the organizations have slowly started adapting a way to restructure themselves in order to cater to the needs of the employees. This paper sources its information from secondary sources and attempts to simplify the concept of employee wellbeing and how it correlates to their work efficiency. The paper starts by explaining under what circumstances the worker experiences mental health problems in the workplace and how that affects their performance. It also discusses why employers should be considerate towards their employees’ mental health and how employers and organizations can influence a healthier workplace environment with special reference to current COVID-19 situations.