'People are struggling in ways we don't always see,' says expert citing need for better support from employers
Human resources professionals who rely on absenteeism data to gauge workforce health are capturing only a small fraction of the productivity drain hitting Canadian employers, according to a new report
Currently, mental fatigue, stress and burnout are costing companies the equivalent of 46 working days per employee each year — and the vast majority of those losses occur while staff remain on the job, according to Manulife.
The report concludes that 3% of total working time is lost to absences tied to health issues, while a further 19% of working time is affected by health-related productivity challenges that occur on the job. Combined under a standard five-day work week, the two figures equate to roughly 46 lost working days per employee per year.
Mental, physical health health undermining performance
Mental health concerns dominate the report's findings on what is undermining employee performance. 80% of employees surveyed said work contributes to their current mental state, and 57% reported that mental health challenges affect their ability to perform their job.
The same proportion — 57% — said they experience burnout at work at least some of the time, while 19% identified mental fatigue as the single biggest barrier to improving their mental health, according to the Manulife report.
"Losing the equivalent of 46 working days per employee isn't just a productivity issue, it tells us people are struggling in ways we don't always see," said Ashesh Desai, Head of Group Benefits at Manulife Canada, in the report. "Employees are still showing up, but burnout and mental fatigue are limiting how they contribute and perform. That gives employers a clear opportunity to make a meaningful difference and better support their teams."
Beyond mental health, the report identifies several physical health factors that intersect with workplace performance. More than half of employees surveyed (53%) reported poor sleep quality, a finding that researchers have repeatedly linked to reduced cognitive function and workplace errors.
Nearly one-third of employees (32%) cited lack of time as the primary barrier to improving their physical health. The Manulife report notes that employees identified physical activity, workplace factors and nutrition as their top areas of concern alongside mental health.
The report frames these findings as evidence of the interconnected nature of health and overall productivity, suggesting that workplace wellness strategies addressing only one dimension — whether mental health, fitness or nutrition — are unlikely to capture the full picture of what is driving the productivity loss documented in the survey.
When it comes to mental health, managers in Canada seem to be better off than individual contributors in the workplace – but they are not showing the way to improvement to help other workers, according to a previous TELUS report.
Gap between benefits offered and benefits used
The Manulife report points to a disconnect between the benefits Canadian employers make available and the rate at which employees actually access them. The findings highlight an opportunity for employers to play a more active role — not just by offering benefit programs, but by making them easier to access and use.
Among the supports the report identifies as helping employees address health challenges earlier are Employee and Family Assistance Programs, mental health practitioner coverage, digital health tools, community resources, physical health support and financial wellness programs.
"Benefits are a strong foundation," Desai said. "But the real impact comes when employees know what's available to them and feel confident using those supports. When access is simple and timely, people are much more likely to get help early, setting them up to stay healthy, engaged, and at their best."
The Economic Cost of Mental Health in Canada – authored by Olga Morawczynski, Kathleen Dobson and William Howatt – estimates that poor mental health costs the country $180 billion annually. Of that, employers absorb about $110 billion through disability claims, wage replacement, benefits, overtime, accommodations, turnover and compliance costs.
But expanding employer‑funded virtual mental health care could reduce the economic impact of mental health challenges in Canada by an estimated $22.2 billion a year, according to a separate analysis.
What causes burnout?
Various workplace factors can contribute to job burnout. According to the Canadian Centre for Occupational Health and Safety (CCOHS), these include:
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unreasonable demands (both too little and too much)
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lack of control or the ability to influence decisions that affect your job (e.g., scheduling, workload, resources)
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unclear job expectations, lack of clarity about what is expected from you
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poor work environment (e.g., bullying, harassment, dysfunctional workplace dynamics, etc.)
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extreme levels of activities (e.g., either very monotonous or very busy)
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a miss-match in values or job fit
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lack of support, either at work or at home
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lack of work-life balance
Leading by example is one of the best ways business leaders can address the issue of burnout in the workplace, according to Citation Canada.
“Leadership is essential for shaping an organisation’s culture. Leaders set the tone through their actions, which employees often mirror. Prioritising mental health and setting a positive example is essential for fostering a healthy and productive workplace. This includes demonstrating the importance of taking breaks and maintaining work–life balance,” the company says.
They add: “By taking intentional steps to prevent burnout, organisations demonstrate a genuine commitment to employee wellbeing and operational success. Through thoughtful, evidence-based strategies, businesses can cultivate a healthier, more engaged workforce, strengthening productivity, enhancing workplace culture, and establishing themselves as employers of choice and leaders in their industry.”
