The figures and studies confirm it: mental health in the workplace is struggling.
Mental health is the leading cause of short- and long-term disability, according to group insurance claims at iA Financial Group in 2025.
It accounts for 35% of short-term disability cases, ahead of musculoskeletal disorders (15%), accidents (14%), digestive system disorders (6%), and tumors and cancers (5%). For long-term disability, the insurer reports a proportion of 50% for mental health and 16% for musculoskeletal problems.
According to the Mouvement Santé mentale Québec (MSMQ), 5 of the 10 leading causes of disability are related to mental health disorders.
In February, the newspaper La Presse reported that, at Beneva, the number of long-term disability claims related to mental health had increased faster than the insured population.
Widespread burnout
Two out of five workers experience constant stress, according to the TELUS Health Mental Health Barometer, which compiles the fourteen reports of its Mental Health Index published in 2024 and early 2025. According to this report, 59% of Canadian employees feel somewhat or extremely exhausted, and 33% report feeling anxious and isolated.
The latest Index published by TELUS Health, for September 2025, is sobering:
- 35% of workers report often feeling unstable and nervous;
- 31% feel isolated;
- 29% say their mental health is impacting their productivity;
- 27% report feeling depressed;
- 16% are pessimistic about their future;
- 10% report poor overall mental health.
Mental Health Research Canada (MHRC) echoes this sentiment in its study, Mental Health in the Workplace 2025, conducted in partnership with Canada Life: “39% of Canadian employees report feeling burnt out, up from 35% in 2023.”
The influence of the workplace on mental health
Employers have a significant influence on the mental health of their staff.
In this regard, a study conducted in several countries—including the United States, France, and Canada—and published in 2025 by The Workforce Institute (a research organization affiliated with the Ultimate Kronos Group, or UKG) reports that bosses have as much impact as spouses, and more than doctors or psychologists. Among employees worldwide, 60% say their job is the biggest factor influencing their mental health.
And what has the greatest influence on employee mental health within organizations? Support from colleagues (65%) and direct managers (59%), according to the MHRC study. They surpass wellness programs (55%), benefits packages (49%), management support (48%), and human resources support (38%).
In its September 2025 Mental Health Index, TELUS Health highlights that workers who report poor mental well-being support from their employer (representing 12% of respondents) have the worst mental health score, at least 23 points below that of workers who rate this support as very good or excellent, and more than 16 points below the national average.
Financial impacts for employers
Employee emotional distress can also impact the financial health of the companies that employ them. “Companies that prioritize prevention see a 27% burnout rate versus 47% for those taking no action, resulting in potential savings of $1.7 million per year for a 500-employee company or $3,400 per employee,” summarizes the MHRC regarding its study conducted in partnership with Canada Life.
This report specifies that burnout costs employers between $5,500 and $28,500 per employee annually, depending on their position.
Between stigma and shortcomings
TELUS Health points out in its Barometer that many employees feel unable to talk about their problems at work. These employees have a mental health score 17 points lower than those who feel safe discussing this issue. In its June 2025 Index, the company reports that nearly half of workers (45%) would fear their career prospects would be limited if they had a mental health issue and their colleagues.
Those figures echo MHRC s findings. Half (52%) of employees report experiencing mental health challenges that have impacted their productivity, but only one in three (33%) has disclosed it to their employer, revealed the study. Among those who have received a diagnosis, 42% have disclosed it at work. The main reason given for remaining silent: fear of negative consequences for their career.
Overall, just over half (53%) of Canadian employees feel they can discuss their concerns about psychological safety in the workplace. Meanwhile, 59% of workers consider their workplace psychologically safe, and 67% consider it conducive to mental health.
In Quebec, Coesion commissioned Léger to conduct a survey of small and medium-sized enterprises (SMEs) across the province to learn about their organizational practices regarding health and well-being. The report, published in November 2025, indicates that 52% of organizations do not address health and well-being in employee meetings.
According to this study, 49% of employers offered at least one one-time or regular health/well-being initiative in the past two years, such as awareness campaigns, conferences, or a health challenge. Conversely, organizations that refrained from offering such initiatives cited low employee interest or participation (43%), that it was not a priority (37%), and a lack of resources (32%).
Nationally, more than three out of five workers report a lack of clarity or inconsistency in communications surrounding workplace health and well-being programs, according to TELUS Health. Its June 2025 report specifies that eight out of ten workers indicate they receive vague or unclear communications about health and well-being programs.
Ill-equipped managers
Even when employees voice their concerns, are managers prepared to address them?
More than half of Canadian managers don't feel equipped to deal with employee mental health issues, according to TELUS Health's June 2025 report. Furthermore, a third (34%) say their employer doesn't provide training on their role in maintaining a psychologically healthy workplace, and 18% are unsure.
Managers surveyed by MHRC are slightly more optimistic: "While 78% of managers feel comfortable intervening and 67% believe they have the right tools, only 54% of employees think they would actually receive support if they were experiencing distress," the organization notes. And while the majority of managers say they prioritize burnout prevention, only 36% of employees feel their organization offers concrete programs to address this. Are managers ill-equipped to deal with what some describe as a mental health crisis in the workplace?
“Managers are often ill-equipped; they lack the time, resources, or space to act,” explains Vanessa Blanchette-Luong, a doctoral candidate in work psychology and researcher at the Université du Québec à Montréal (UQAM).
She says the situation is better when managers initiate discussions within teams about daily challenges. Small teams create a group where people support each other—not just to vent, but also to regulate and find solutions. “Managers are the guardians of productivity, but supporting teams isn’t formally included in their job descriptions. A whole aspect of their work is invisible. This reality applies to all types of organizations,” she observes.
Mental health is shaped by everyday micro-decisions, more so than by human resources policies.
“In larger organizations, managers are drawn to productivity,” she continues. “They respond to indicators. Supporting teams becomes difficult. This is especially true since the mental health of managers is also threatened, as they must simultaneously meet performance objectives and support their teams. Many of them listen more to their boss than to their employees.”
Blanchette-Luong observes that organizations view mental health at work as something individual. “On the contrary, we should consider it as an organizational and collective reality,” she continues. “If we offer training on stress or time management, for example, but the objectives are unrealistic, we create an unhealthy environment. Conversely, by listening to employees and organizing work differently, we wouldn’t need to organize stress workshops.”
Many organizations apply formulas instead of embracing the realities on the ground and trusting workers to manage their own challenges. In other words, they adopt a bottom-up management approach. “In business schools, there’s a strong reliance on predetermined processes, and procedures are formalized,” she contends. “On the contrary, we need to give workers more power and autonomy.”
Research has shown for years that managers must be, above all, good listeners, empathetic, humane, and proactive. “Organizations need to stop promoting the best technicians to management positions,” comments Manon Poirier, Executive Director of the the Ordre des conseillers en ressources humaines agréés du Québec (CRHA). “Because the qualities sought in managers are primarily relational.”
Future managers accept promotions because being the boss is more lucrative and rewarding…But have their human resources management skills been validated?” she asks. This is especially relevant given that nine out of ten managers indicate they understand the importance of improving their skills and supporting those who are stressed, according to an MHRC study.
Time
When asked to identify the most effective mental health support measures, employees surveyed in the MHRC study mentioned paid time off (69%), personal days (58%), and flexible hours (52%), far ahead of social events (26%) or awareness programs (22%). In other words: work-life balance.
Unsurprisingly, this balance weighs heavily on workers' already overloaded schedules. And not just for parents. For example, nearly half of Quebec caregivers hold full-time jobs: one in three doesn't dare disclose this to their employer. Half fear being judged or losing career opportunities, reveals a Léger survey conducted for the Concilivi organization, published in 2026. Consequently, negotiating individual accommodations represents a significant source of stress for 53% of caregivers.
In short, people want more time to spend less time stuck in traffic, manage their families, and care for their aging parents. This is the concept of the sandwich generation. These issues are compounded by financial concerns, relationship problems, and health concerns.
On the other hand, some family issues spill over into the workplace, such as the postpartum period. A Statistics Canada study reports that nearly half of mothers experienced emotional or mental difficulties during pregnancy or after childbirth. And 20% of mothers who gave birth in 2024 reported needing mental health care but not receiving it.
Basic needs
Beyond our performance-driven culture, what causes distress in the workplace? Manon Poirier cites without hesitation the failure to recognize basic needs: “The workload itself is often not the problem,” she says. “If people don't consider themselves competent, if they feel invisible, if they are taken for granted, instead of having their accomplishments recognized and their contributions included in decisions, their distress increases This isn't new, but these phenomena persist in society.”
Added to this is technostress. Employees have little chance of concentrating on their tasks because they are bombarded by their technological environment, as neuroscientist Sonia Lupien has demonstrated: open-plan offices, a barrage of alerts on computers and phones, phone calls, texts, and emails... She suggests creating distraction-free periods and designated times when employees are allowed not to respond to messages immediately.
Is this the same everywhere?
Mental health issues in the workplace also vary depending on geography, the size of the organization, and whether it's more conservative. “All organizations are affected, but the approach differs greatly,” states Philippe de Villers, Vice Chair of the Board of CPHR Canada. “Large companies are concentrated mainly in Ontario and Quebec, where HR professionals form a close-knit community. Innovative programs are shared, and best practices trickle down to smaller organizations through formal, informal, and professional networks.”
He observes that Quebec is somewhat ahead on mental health issues compared to the rest of the country. “In Quebec, we’ve been talking about these issues for a long time,” he says. “In other provinces, there’s a more conservative approach.”
This article is a Magazine Supplement to the April 2026 issue of the Insurance Journal.