Study Links Canadian Productivity to Workplace Health
A new study reveals key factors in Canadian workplace health and happiness that can increase employee productivity and business growth. To address productivity stagnation, the report suggests employers must support healthy workplace design, services, and culture. The findings emphasize a direct link between employee well-being and overall economic performance.
- Canadian business labour productivity has been volatile, rebounding by 0.9% in the third quarter of 2025 after a 1.0% decline in the second quarter. This fluctuation highlights the ongoing search for stable growth drivers. - A 2025 report from Mental Health Research Canada estimates that employee burnout costs Canadian employers between $5,500 and $28,500 per worker annually. Companies that proactively invest in prevention measures see burnout rates of 27%, compared to 47% in those that do not. - The cost of inaction is significant, with poor mental health costing the Canadian economy over $200 billion annually, a figure projected to rise to $2.5 trillion by 2041. - According to a Telus Health report, 70% of Canadian employees feel their productivity has declined due to worsening mental health. The same report found workers in supportive environments lost an average of 27 days per year due to mental health challenges, compared to 55 days in unsupportive workplaces. - There is a demonstrated return on investment for supporting employee health. A report from Deloitte Canada calculated a median annual ROI of $1.62 for every dollar invested in workplace mental health programs, a figure that grows to $2.18 after three years. - A significant portion of the workforce is affected, with a 2025 survey finding that 58% of employees are impacted by a mental health diagnosis, either personally or through a close family member. However, only one-third of these individuals disclosed the challenges to their employer. - Support from colleagues and managers has the strongest positive impact on employee mental health. Paid time off, personal days, and flexible schedules are ranked as the most effective supports, while social events and awareness programs are considered far less helpful. - Despite 80% of large Canadian companies offering some form of wellness program, the Conference Board of Canada reveals that only about one-third of these initiatives deliver meaningful results.
