Blog

Promoting good mental health in the workplace has become more imperative than ever, especially during the ongoing economic and geopolitical upheavals throughout the past year.

However, Canadian employees continue to report high levels of mental health challenges that affect productivity and workplace functioning. 

In fact, according to Newswire Canada, recent data shows that nearly 39 % of workers feel burnt out which is a significant increase from earlier years, and that burnout now directly impacts productivity, costing employers millions annually in lost output and compensation costs.

To effectively support employees, business must move beyond awareness campaigns and adopt practical, systemic, and compassionate approaches, something CMHA Waterloo Wellington’s Megan Brady says is imperative but realizes the complexities that can surround this issue. 

“No workplace will be able to meet every individual's needs, but businesses can create conditions that make it easier for employees to maintain their well-being and by fostering that supportive culture and offering resources and addressing workplace stressors proactively,” she says. “Mental health remains a top priority for Canadian workplaces, but the focus has evolved.”

Businesses struggle to translate awareness

In the wake of the pandemic, where levels of anxiety and stress reached unprecedented levels, Megan says there is clear indication that employees are expecting more support and employers have now recognized the impacts of mental health can have on businesses. 

“The economic stressors, burnout, workplace anxieties, that's continuing to rise because of the things we're facing from an economic standpoint and overall, I think attitudes about mental health have shifted since the pandemic,” she says, noting it remains a difficult topic for some businesses to address.

Despite increasing dialogue around mental health, many Canadian businesses struggle to translate awareness into actionable workplace strategies. Employers often report increased openness to mental health discussions but haven’t fundamentally changed workplace culture or practices to support employees effectively.

According to Benefits and Pension Monitor, many employees do not disclose their struggles at work, often due to fears around stigma, career consequences, or a belief that managers won’t know how to respond. There are surveys indicating that only about 30-42 % of employees with a mental health diagnosis disclose it in the workplace, leaving a large disclosure gap that impedes early support and accommodation.

Megan says there are many signs employers can watch for indicating an employee may be struggling with their mental health, including behavioural changes such as withdrawal from team interactions, a sudden drop in work performance or increased absenteeism. These can also be coupled with physical symptoms, including complaints about headaches, fatigue, or a noticeable change in appearance.

Business owners facing mental health issues

“But you don’t want to pressure someone to disclose what may be going on with them,” she says, recommending employers never ‘minimize’ potential concerns. “It’s more about letting them know you are there to support them with whatever may be going in their personal life or what may be happening in the workplace.”

Megan says ‘checking in’ with employees continues to be a good way to gauge potential mental health concerns, especially for those considered to be ‘high performers’ in the workplace.

“They may be working hard and doing well, and an employer may assume they are doing well,” she says. “But you need to check in with everyone, not just the people who may be outwardly expressing or showing they’re having difficulties. I think the high performers can be missed opportunities.”

However, it’s not just employees that continue to face mental health difficulties. Canadian entrepreneurs and business owners themselves are reporting significant stress and mental health challenges, often tied to economic uncertainty, operational pressures, and responsibility for others’ livelihoods. According to BDC, more than one-third of small business owners reported mental health concerns affecting their ability to work regularly in 2025.

Megan says business owners and leaders themselves need to recognize they have limits when it comes to work and ensure they are taking the typical steps to maintain their own wellbeing, such getting the right amount of sleep and eating well.

Integrated efforts needed

“It’s knowing when to step back if you need to, even though if you are in the position where you feel like you have to hold it all together,” she says. “It’s just like being a parent. As they say on airplanes, put your own mask on first. You can't help somebody else if you're not well.”

Utilizing available resources is another important consideration, something Megan has noted as businesses contact the CMHA Waterloo Wellington for assistance.

“Businesses are definitely engaged with us and reaching out,” she says, adding those providing customer facing services often require de-escalation training. “Since the pandemic, I feel a lot of people don't have the capacity to reflect and de-escalate themselves and soothe themselves down to a calmer place.”

Addressing mental health issues in the workplace requires integrated efforts, which includes revising policy and benefits designed to cultivate empathetic leadership and create psychologically safe environments where these challenges can be openly discussed and supported.

“Pizza parties at work are great, but they don't address an overarching issue you might have in your workplace,” says Megan.

Steps businesses can take to address mental health issues

Foster a psychologically safe workplace culture

Businesses should actively normalize mental health conversations by integrating them into leadership messaging, team meetings, and organizational values. When employees see senior leadership acknowledging mental health as legitimate and important, trust and disclosure increase.

Train managers to recognize and respond to mental health issues

Businesses should invest in mental health training for managers, focusing on recognizing early warning signs, having supportive conversations, and connecting employees with available resources. Training should emphasize listening skills, confidentiality, and accommodation processes rather than diagnosing or “fixing” problems. 

Improve access to mental health benefits and services

Businesses should review and enhance benefit plans to ensure adequate coverage for counselling, therapy, and virtual mental health services. Employers should also clearly communicate how to access benefits, as confusion often prevents employees from seeking help.

Encourage work-life balance and prevent burnout

This includes setting reasonable performance goals, encouraging employees to take breaks and vacation time, and respecting boundaries outside working hours. Flexible work arrangements can help employees manage personal responsibilities and reduce stress. Preventing burnout not only protects mental health but also improves productivity and engagement.

Implement clear accommodation and return-to-work policies

Businesses should establish transparent, fair, and confidential accommodation processes that comply with human rights legislation. This may include modified duties, reduced hours, or gradual return-to-work plans. 

Use data and feedback to improve strategies

Regular surveys, anonymous feedback channels, and benefit usage data can help identify gaps and emerging risks. Employers should use this information to continuously refine mental health initiatives rather than relying on one-time programs. Involving employees in the design of mental health strategies also increases relevance and participation.

Support financial and social wellbeing

Employers can support wellbeing by offering financial wellness resources, such as budgeting tools or access to financial advisors. Promoting inclusion, teamwork, and connection—especially in hybrid or remote environments—also reduces loneliness and improves morale.