Introduction
Desjardins Insurance is a founding partner of the Conference Board of Canada’s new Mental Health and Wellbeing Research Centre. We chose to invest in this partnership because we believe that the work that they do will contribute to developing practical solutions that can benefit employers across the country and ultimately, their employees.
In November 2022, the centre’s first study was published: Future-Proofing Investments in Workplace Mental Health. The study examined existing mental health and wellness programs, policies, and benefits, and explored areas organizations should focus on to future-proof their workforce.
The business costs associated with mental health issues are staggering. The most recent estimate for the annual economic burden of mental illness in Canada was about $51 billion.1 Mental illness accounts for roughly 30% of short and long-term disability claims and 70% of workplace disability costs.2 Mounting evidence suggests that the growing cost of mental illness isn’t sustainable; by some estimates, the total cost of mental health issues in society could be greater than the entire cost of the healthcare system in Canada.3
Many organizations have already increased their suite of health and wellness initiatives to help employees better manage the transition through the COVID-19 pandemic. They’ve also started taking a more holistic approach to employee health and wellness and are increasingly aware of the importance of creating a just and equitable workplace for a diverse workforce. As the economy continues to adapt, they have an opportunity to create healthier workplaces and engage with employees to maximize the success of mental health and wellness initiatives.
Organizations generally consider their health benefits as the first line of defence in their health and wellness initiatives.
But while most organizations have or are developing an employee mental health strategy outside of their benefits plan, they face three main challenges: adapting to an ever-changing workplace, understanding workforce needs, and measuring outcomes.
Investments in workplace mental health yield benefits well beyond productivity and can help attract and retain talent, and manage risk. But how do we get there from here? How can employers future-proof their employees’ mental health for what lies around the corner?
The state of mental health initiatives
It’s never been clearer: Workplace mental health and wellness initiatives are fundamental to employee wellbeing and organizational success.4 The two are strongly interconnected, but the workplace can also be a source of stress that can negatively impact employee mental health. Given the need and the challenges, employers play a crucial role.
Organizations are coming to recognize the need for comprehensive mental health strategies. Many have already implemented initiatives to support employee mental health. But the question remains: are their employees getting the help they need?
When it comes to new work realities – including remote and hybrid work – employee needs are changing, and it can be hard for employers to keep up. Meanwhile, as the labour market becomes more diverse, it’s increasingly important to embed diversity, equity and inclusion (DEI) into organizational mental health and wellness strategies. Here again, however, it may not always be entirely clear to employers how they can do so.
The working world has changed dramatically, and as employers continue to adapt, they have an opportunity to redefine the mental health support they offer to meet their employees’ evolving needs. And it’s worth it, especially when you consider that:
Mental illness-related absenteeism, presenteeism, and turnover cost $6.3 billion in lost workplace productivity each year.5
A third of organizations consulted in the study have increased coverage for mental health services between 2020 and 2022.
72% of organizations already have or are in the process of developing a mental health strategy in addition to their group insurance, with just over 40% already having a strategy in place—the competition is fierce!
But, on the flip side:
2 out of 5 employers never measure the effectiveness of their mental health and wellness initiatives.
Only 20% of organizations collect information on benefit usage by demographics.
Only 30% of organizations ask their employees what they would like included in their mental health and wellness initiatives.
A more holistic approach
One way organizations can respond to these changing needs is to approach them holistically. Beyond traditional benefits, organizations are starting to offer a broader range of benefits, such as ergonomic office equipment, employee appreciation events, health and safety training and more. They’re seizing the opportunity to redefine their organizational requirements and ensure that mental health supports reflect their workers’ evolving needs.
Beyond perks like those mentioned above, organizations are also identifying work practices and behaviours that may be impacting mental health and wellbeing and introducing new interventions to support employee mental health. These interventions fall into three broad categories.6
1
Primary interventions
These target the work environment itself. They’re proactive, as opposed to secondary and tertiary interventions, which are reactive. They are aimed at reducing or eliminating sources of stress at work. They include management style, organizational structure, task management, reduced hours, etc.
2
Secondary interventions
These are designed to build employee resilience, so the stress doesn’t get to them as much. They include mindfulness training, information on stress management, etc.
3
Tertiary interventions
These are related to supporting and treating employees who are already in mental distress. They include EFAP/EAP benefits, absences, disability leave, etc.
Employers have historically shown a tendency to focus on secondary and tertiary interventions,7 but without primary interventions that address systemic work-related stressors, those efforts may be in vain,8 especially given the shifting workplace and changing demographics.
"We focus a lot on individual support and often ignore the systemic and workplace factors contributing to mental health issues and challenges. Future-proofing mental health investments in the workplace is also about creating psychologically healthy and safe workplace environments."
– Interviewee
1 Centre for Addiction and Mental Health, “The Crisis Is Real.”
2 Chapman and others, “The ROI in Workplace Mental Health Programs.”
3 Mental Health Commission of Canada, “Making the Case for Investing in Mental Health in Canada.”
4 Sutherland and Stonebridge, Healthy Brains at Work
5 Smetanin and others, “The Life and Economic Impact of Major Mental Illnesses in Canada.”
6 Weiss, “Burnout From an Organizational Perspective.”
7 Cooper and Cartwright, “An Intervention Strategy for Workplace Stress.”
8 Pfeffer and Williams, “Mental Health in the Workplace,” 5−6.