Mental Health in the Workplace: Why It Matters for Employers
Mental health at work is no longer a niche concern—it’s a foundational part of workplace wellbeing. Younger generations in particular are not only more open about mental health, they expect their employers to support it. According to Benefits Canada, 40% of Canadian Gen Z employees say they’re at a mental health breaking point.
Addressing mental health at work isn’t just the right thing to do—,it’s also good for business. From boosting productivity to lowering absenteeism, mental wellness support is key to a healthier, more effective workforce.
The Impact of Mental Health on Workplace Productivity
Mental health problems like anxiety, stress and depression are among the leading causes of lost productivity. According to TELUS Health, Canadian employees with depression lose an average of 56 workdays annually, and those with anxiety lose 55.
The economic toll is substantial. As reported by the Canadian Mental Health Association, 70% of workplace disability costs are attributed to mental illness—and one-third of all short- and long-term disability claims relate to mental health.
Supporting mental health in the workplace can lead to:
- Fewer absences and reduced sick time
- Better work-life balance and safer work environments
- Fewer physical health complications linked to stress
- Greater employee retention and satisfaction
How to Support an Employee’s Mental Health at Work
Recognizing the signs of mental health struggles is the first step: poor performance, absenteeism, mood swings, tardiness, social withdrawal and changes in appearance are all red flags.
Supporting employees means offering services that are:
- Confidential and accessible
- Available onsite or virtually
- Focused on early intervention
- Delivered by experienced mental wellness professionals
Early Intervention Prevents Crisis
Mental health crises don’t just affect the individual—they disrupt teams and increase costs. Proactive support gives employees the tools to identify warning signs, seek help and support their coworkers.
With Medcor’s mental wellness advocacy services, employees can receive timely support and prevent issues before they escalate.
Reducing the Stigma of Asking for Help
Stigma remains one of the biggest barriers to getting support. According to a CMHA survey, many Canadians still avoid talking about mental health due to embarrassment or fear of being seen as weak.
Normalizing mental health conversations and offering discreet access—especially through virtual care—encourages employees to seek help when they need it.
In 2025, 74% of Canadian employers offered virtual mental health support, up from 52% in 2022 (CMHA).
Boosting Morale and Engagement
Workers who feel supported are more likely to be engaged, present and productive. Offering confidential mental wellness support helps create mentally healthy workplaces and signals that employee wellbeing is a business priority.
By promoting mental health as part of your employee value proposition, you foster a healthier, more engaged workforce.
How Leaders Can Create a Mentally Healthy Workplace
What Can Organizations Do to Promote Positive Mental Health?
Start with evidence-based strategies:
- Promote work-life balance and manageable workloads
- Offer virtual and onsite wellness resources
- Train leaders in supportive resolution practices
- Build a culture of psychological safety
- Leverage Medcor’s Fixed-Location Onsite Clinics to integrate support services into your broader occupational health programs
Who Is Responsible for Mental Health in the Workplace?
Everyone has a role to play—from health and safety committees to frontline managers and coworkers. According to the Mental Health Commission of Canada, fostering a psychologically safe work environment requires shared responsibility and system-wide accountability.
According to the Canadian Psychological Association, at least 500,000 Canadians miss work due to mental illness each week, costing the economy $51 billion annually.
Integrating Psychological Health and Safety into Workplace Practices
Medcor supports organizations across Canada with scalable, high-impact mental wellness advocacy services. Whether your team is remote, hybrid or onsite, we deliver discreet, accessible support through:
- Virtual services employees can access from home
- Fixed-location and mobile onsite clinics
- Mental wellness appointments and coaching
We integrate psychological health and safety into broader occupational health strategies, improving outcomes and reducing costs.
