Mental health significantly influences employee outcomes and organizational performance, particularly in high-pressure environments such as government organizations. Mixed-method research incorporating structured questionnaires and interviews with 30 employees across hierarchical levels in Dubai highlights key challenges and opportunities. Quantitative findings reveal stress and anxiety as major concerns, with absenteeism (20%) and presenteeism causing substantial productivity losses. Turnover rates among untreated employees with poor mental health were 15% higher, supported by regression models linking poor mental health to low performance. Cultural stigma emerged as a barrier, with 60% avoiding support. Organizations with mental health programs demonstrated 30% higher employee satisfaction and a 4:1 ROI. Addressing these challenges through tailored interventions can enhance well-being and drive organizational success.