Mental Health and Wellness in the Workplace

Executive Summary

Mental health is no longer a peripheral benefits topic—it’s a core workforce issue.

Across Canada, employers are facing a perfect storm: rising mental health–related disability claims, burned-out managers, overwhelmed EAPs, and employees demanding more personalized, stigma-free support.

Yet too many group benefits plans still treat mental health as an afterthought—offering minimal coverage, outdated resources, and reactive support only after a crisis.

In this article, we explore how employers can design a comprehensive mental health and wellness strategy that goes beyond check-the-box benefits. You’ll learn:

• How to audit your current plan’s mental health support

• What Canadian employees expect today

• Best-in-class plan design features for psychological health

• The role of digital tools, EAPs, and manager training

• How to measure ROI on mental health investments

1. Why Mental Health Has Become a Top Workforce Priority

• 1 in 5 Canadians experience a mental health issue in any given year

• Mental health–related STD and LTD claims are now the leading cause of disability

• Younger employees are more likely to leave jobs due to unaddressed psychological health concerns

• COVID-19, hybrid work, and rising burnout have accelerated awareness—and urgency

Benefits plans that don’t address mental health comprehensively will fall behind in talent attraction, retention, and productivity.

2. The Mental Health Gap in Most Group Benefits Plans

Simply having an EAP or a counselling benefit is no longer enough.

3. Understanding the Spectrum of Psychological Health Needs

Mental health support must span from prevention to crisis:

4. The Real Cost of Inaction

Investing in mental health is not a cost centre—it’s a risk mitigation and culture asset.

5. Audit: How Mental Health-Friendly Is Your Benefits Plan?

Ask yourself:

• Do we cover psychologists and social workers? How much?

• Can employees access mental health care virtually and quickly?

• Do we offer more than just an EAP?

• Do managers know how to support struggling team members?

• Is our RTW process adapted for mental health?

• Have we destigmatized mental health in our internal communications?

Use the downloadable audit tool at the end of this article to score your current plan.

6. Plan Design Features That Matter

Add-on tip: Consider mental health top-ups through HSAs or WSAs.

7. Enhanced EAPs: From Crisis Line to Preventive Resource

The traditional EAP model is outdated. Look for:

• Multiple session models (5–10 sessions, not just 1–3)

• Digital access (mobile app, live chat, video)

• Multilingual and culturally competent counsellors

• Manager hotlines and coaching

• Utilization reports (aggregate and de-identified)

If EAP usage is under 10%, you’re not getting value—or employees aren’t aware of it.

8. Virtual Care and Digital Mental Health Tools

Best-in-class employers offer:

• 24/7 virtual physician access for stress and sleep issues

• Digital CBT platforms (e.g. MindBeacon, SilverCloud, AbilitiCBT)

• On-demand therapy with licensed professionals via app

• AI-powered symptom trackers and journaling tools

These tools remove barriers of access, time, and stigma.

9. Manager Training and Organizational Culture

Managers are your first line of defence—but most feel unprepared.

Offer:

• Mental health literacy training

• Scripts for sensitive conversations

• Checklists for early signs and referral points

• Policies supporting flexibility, time off, and accommodations

Culture is as important as coverage. Train, measure, and reinforce.

10. Disability, Accommodations, and Return-to-Work for Mental Health

Support recovery and return with:

• Flexible hours or reduced workloads

• Remote/hybrid accommodations

• Progressive re-entry schedules

• Access to case managers or internal RTW coordinators

• No punitive language in leave policies

Recovery from depression or anxiety isn’t linear—RTW plans should reflect that.

11. Communication and Destigmatization Tactics

• Run quarterly mental health campaigns

• Use employee stories (voluntarily shared) to model openness

• Partner with mental health organizations (e.g., CMHA, Bell Let’s Talk)

• Include benefits walkthroughs during onboarding

• Celebrate participation in wellness challenges

Employees only use what they understand, trust, and feel safe accessing.

12. Measuring Impact: Data, Outcomes, and ROI

Track:

• STD/LTD incidence and duration (by diagnosis)

• EAP and mental health coverage utilization

• Absenteeism trends (mental health–linked)

• Employee feedback (via surveys or listening tools)

• Manager confidence levels (pre- and post-training)

Return on mental health investments is measured in reduced absence, faster RTW, higher engagement, and improved culture.

Final Thoughts

Mental health isn’t just a benefits issue—it’s a leadership imperative.

By investing in a comprehensive mental health strategy, employers can:

• Prevent burnout and disability claims

• Retain top talent

• Create a psychologically safe culture

• Show they truly care

If you’re ready to transform mental health from reactive to strategic—we’re here to help design, benchmark, and implement the right path forward.