Blog

Good mental health is a cornerstone of a productive, resilient, and sustainable workforce. 

For Canadian businesses, supporting mental health is not just a compassionate gesture—it is a strategic necessity that affects performance, profitability, and long-term success.

“Workplace stress and burnout is something that quite honestly, every one of us has felt at some point or another. It is not uncommon,” said Canadian Mental Health Association (CMHA) CEO Camille Quenneville, while outlining the economic impact it has on businesses during a recent talk with the Ontario Chamber of Commerce network.

In Canada, the importance of mental health in the workplace has gained increasing recognition, especially in the wake of the pandemic and its widespread psychological impacts, something Quenneville said has become quite apparent among younger employees.

“Loneliness is something that we have been doing a lot of research on and there are lots of reasons for that,” she says. “Some of it is because the younger group coming up into the workforce has had a very different school experience and in many ways life experience than we've had. They connect online as opposed to face to face and with each other. They don't have those networks that were available to us when we were younger. And loneliness is the result of that.”

Economic impact

As well, the economic flux brought on by the ongoing trade war is also taking its toll.

“These economic pressures do a real number on our mental health,” said Quenneville. “And again, even if we don't talk about it, the fear of what may come has a very significant impact.”

Experts say the impact of mental health illness is costing the Canadian economy more than $50 billion annually, which translates into approximately $1,500 per employee per year, with a significant portion attributed to lost productivity. Also, nearly one out of three disability claims are due to mental health problems and illnesses.

“We know what it means in the workplace when we're having to deal with compensation claims and what it means for our bottom line and for the bottom line of the folks running businesses in your communities,” she said.

Businesses that invest in mental health promotion and support see fewer sick days and lower levels of presenteeism. This results in smoother operations, reduced disruption, and stronger team cohesion. When employees feel mentally healthy and supported, businesses see fewer mistakes, improved work quality, and greater output—all of which contribute to a stronger bottom line.

Challenges facing businesses

“We know reputationally, organizations that actually address this and do it in a way that is transparent and shows empathy and compassion they really build a great reputation,” said Quenneville, admitting there are challenges businesses face trying to implement policies that promote good mental health. “How do we build that in? How do we make sure that those policies really fit? That’s not an easy thing to do because they have to work for both the employer and the employee. It takes a bit of effort. Don’t try to eat the whole elephant. We'll just take the first bite and see where that takes us, and it might be a pilot program. It might just be in one part of the organization and then we look towards adjusting that.”

She said having strong leadership is key to making this happen, noting it is not always easy considering some business leaders are facing their own pressures outside the business that could be impacting their mental health.

“Not any one of us is there every single day. So, we must assess where we're at and we have to create an environment where it's OK to be honest about the state of our workplace,” said Quenneville.

“I'm not suggesting we become mired in this and that everybody has to hold hands every day and talk about how they're feeling, but really just build the kind of environment where if somebody is struggling it’s OK. And if someone needed to take a (mental health) leave when they come back that they're welcomed back the same way somebody who took a leave to have surgery or cancer treatment would be welcomed back into the workplace.”

Tips to adopt a multi-pronged mental health approach 

Establish clear mental health policies

One of the most effective starting points is the implementation of formal workplace mental health policies. These policies should align with The National Standard of Canada for Psychological Health and Safety in the Workplace, which provides a framework for preventing psychological harm and promoting psychological well-being. 

Foster a supportive and inclusive culture

A toxic workplace—marked by poor communication, lack of respect, and unmanageable workloads—can contribute directly to stress, anxiety, and burnout. To build a positive culture:

• Encourage open conversations about mental health
• Celebrate work-life balance
• Train employees and leaders to recognize signs of distress
• Promote diversity and psychological safety
• Recognize contributions and provide regular, constructive feedback

Train leaders and managers in mental health literacy

Many employees report that their immediate supervisor plays a crucial role in how supported they feel at work. However, most managers are not trained to identify or respond to mental health concerns. Investing in mental health training for leaders can:

• Improve early recognition of mental distress
• Encourage empathetic and solution-focused conversations
• Empower leaders to direct staff to appropriate resources
• Reduce unintentional harm through insensitive responses

Provide access to quality mental health resources

While many Canadian employers offer Employee Assistance Programs (EAPs), these are often underutilized. Some barriers include a lack of awareness, limited sessions, or concerns about confidentiality. To improve access:

• Ensure benefits include adequate mental health coverage 
• Promote available services regularly and clearly
• Offer a tiered support model (self-help tools, peer support, professional therapy)
• Consider on-site or virtual counselling options

Improve work design and flexibility

Chronic stress often stems from how work is structured. Jobs with high demands and low control are the most psychologically harmful. Businesses can reduce stress by designing work environments that foster autonomy, predictability, and fairness. Key strategies include:

• Encouraging reasonable workloads and realistic deadlines
• Offering flexible work arrangements (e.g., hybrid schedules, flexible hours)
• Allowing employees input into how tasks are completed
• Limiting after-hours communications to protect personal time

Monitor, measure, and evolve

Finally, businesses must commit to ongoing assessment and improvement. Mental health strategies should be evaluated for effectiveness through anonymous surveys, focus groups, and usage data. Key performance indicators might include:

• Absenteeism and turnover rates
• EAP utilization
• Employee satisfaction and engagement scores
• Psychological safety metrics