May marks Mental Health Awareness Month, a time dedicated to conversation around the importance of mental wellbeing. As employers, we understand the importance of physical health and safety in the workplace. If an employee has a serious fall and hurts themselves, the physical injury is unmistakable. Because mental health issues are often not “visible”, they are easily sidelined. “Out of sight, out of mind.” The topic of mental health may feel vague because of this. The truth is that employers have a responsibility to create psychologically healthy workplaces.
Psychological health and safety are deeply embedded in our daily interactions with each other. An employee’s mental health is directly impacted by both management practices and working conditions.
Canada’s National Standard on Psychological Health & Safety in the Workplace, originally released in January 2013, was the first of its kind in the world. The Standard gives employers the framework to build a mentally healthy and safe workplace. There are many external workplace factors that can impact one’s own psychological health and safety. The Standard addresses those psychological aspects within the control and responsibility of the employer. Further in this blog, we’ll discuss some of the practical ways employers can support the mental health of their workers, including using this framework.
What the data shows us
Mental health has been a topic that’s continued to grow in Canada, and more work is needed to be done by employers. Data has shown a stark narrative of how employee mental health issues and illnesses are impacting the economy and businesses.
Mental health issues impact over half of Canadian workers. In a 2025 study conducted by Mental Health Research Canada (MHRC), 52% of participants reported facing mental health challenges that affected their work. Only 33% addressed it in their workplace.
Mental health problems have grown to be one of the leading causes of disability in the Canadian workforce. Research has shown that the prevalence has only increased over time.
The toll on the Canadian economy is clear. According to the Canadian Psychological Association, it is estimated that the cost of mental health on the Canadian economy is higher than $51 billion per year.
Research has also shown not everyone with a mental health problem or illness seeks treatment. Whether this is due to lack of resources, lifestyle, or perceived stigma, the burden still remains.
Why the strong increase if more attention has been pivoted to mental wellbeing in the past decade?
Mental health challenges can be triggered by many different factors. These range from lack of belonging or social connection, distressing events, and socioeconomic pressures such as food insecurity and increased cost of living. In recent times, the COVID-19 pandemic, global tensions, and economic instability have dealt a serious blow to the mental wellbeing of Canadians. It’s also important to remember that some groups are disproportionately affected, including those who are Black, racialized, immigrations, Black, racialized, immigrants, 2SLGBTQI+ or Indigenous Peoples.
What business owners can learn from this
Investing in mental health support for employees is a mutually beneficial initiative. Putting focus on psychological safety and mental health resources have been shown to have a direct impact on performance and productivity, employee retention, and the overall health of businesses. According to a Deloitte study conducted in 2019, there is an estimated return of $1.62 per $1 spent on mental health programs. The key is to shift mental health support from reactively putting out fires to proactively incorporating it into your business.
Here are constructive ways that employers can promote mental wellbeing and psychological safety in the workplace:
Assess potential psychological hazards.
Employers can perform a psychological hazard assessment, such as using factors described by Psychological Health and Safety in the Workplace. Examples areas of concern include the pace of work, conflicting demands, and poor communication. The factors of the assessment can be tailored for your organization, and the results can reveal valuable insights into the health of your business.
Incorporate mental wellbeing in cultural initiatives.
Remember that your business functions as a community of individuals. By promoting open discussions about mental health without fear of stigma, you can build trust and resiliency with your workers. Organizing social events, establishing support groups, and running recognition programs are all easy and effective ways to boost employee morale. Consider hosting employee opinion surveys to gather specific critical information you may be missing. Some employers also roll out wellness programs such as ‘No Meeting Days’ to help prevent workplace fatigue.
Promote benefits and resources available.
Ensure your employees understand what benefits and resources are available to them and allow them to ask questions if they’re unsure. If your business provides an Employee Assistance Program (EAP) for your workers, make sure they know how to access it. Incorporate terminology around rest and recovery into your policies and procedures and encourage workers to take time off when they need it.
Provide manager/supervisor training.
Hosting dedicated training on how to handle employee issues can be worth your while and prevent situations from escalating unnecessarily. Training supervisors and managers on a clear balance between empathic communication, direct support, and performance management can improve employee relationships. Specific training can also be provided on how to identify potential mental health concerns such as burnout through employee behaviours and address it early.
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