'We cannot keep extracting more from employees and expect their capacity to be limitless,' says expert
Canadian employees score well below their US counterparts on innovation, trust and growth culture, according to country data in O.C. Tanner's 2027 Global Culture Report.
Canada scored 25 on the report's innovation measure, compared with 46 for the US, and 17 on trust, compared with 36. Canada's burnout score of 44 was the highest of the five countries surveyed in the Americas, and its appreciation score of 60 trailed the US at 68.
The study surveyed 25,832 workers at organizations with 500 or more employees across 23 countries and drew on 24 focus groups held in 2025 and 2026. O.C. Tanner, which provides employee recognition programs, conducted the research through its O.C. Tanner Institute, and the results are based on online surveys.
Recognition at every stage
Citing a Forbes article, the report says only 33 percent of employees are innovators, while 64 percent wish they were doing more. Odds of creative thinking fall 93 percent when employees are not recognized for it and 89 percent when they are discouraged from thinking outside the box.
Punishing employees when new ideas fail lowers the odds of acting on ideas by 68 percent, while not recognizing attempts lowers them by 82 percent. Employees recognized for thinking, sharing and acting on ideas are 21 times more likely to be innovative.
The report associates specific workplace conditions with higher odds of creative thinking. Having time built into a role to think creatively and being rewarded for new ideas each carry 11 times higher odds.
Dr. Alexander Lovell, vice president of the O.C. Tanner Institute, said organizations are asking more of their people in response to relentless change, often without building the culture that makes those demands sustainable.
"We cannot keep extracting more from employees and expect their capacity to be limitless," he said.
Canada's productivity and burnout gap
Productivity remains a focus for Canadian employers. Statistics Canada reported that business labour productivity rose 1.0 percent in the second quarter of 2026, the largest quarterly gain since 2020.
Burnout remains elevated. A Robert Half survey found that 62 percent of professionals in Canada are burned out, up from 47 percent in late 2024.
AI adoption adds further demands on staff. The 2026 TD AI Insights Report found that only 37 percent of Canadian workers say their employer has provided adequate AI training, while O.C. Tanner's data shows just 31 percent of employees globally trust AI.
The report found that employees consulted before major technology decisions have 4 times higher odds of seeing AI as a useful tool in their work. Employees who trust their leader's judgment about technology have 6 times higher odds of viewing systems such as AI as reliable.
Innovation, trust at work
Organizations with three pillars of care, namely a foundation of care, capacity protection, and clear guidelines and boundaries, have 11 times higher odds of growth and innovation. Frontline employees report 88 percent lower odds of burnout when their organizations demonstrate compassion.
Employees increasingly view learning as transactional, the report found. When six growth culture elements are present (empathy, communication, community, support, opportunity and balance), organizations have 48 times higher odds of "cultural elasticity," the ability to build skills and remain agile.
Frontline workers in organizations that invest in growth report a 20 times increase in their sense of opportunity and a 25 times increase in their sense of success.
Practicing six elements of active trust (transparency, reliability, accountability, judgment, safety and care) raises the odds of company financial stability 12 times over, and employees are 14 times more likely to say their organizations care about them.
Frontline employees, who are less likely than corporate staff to trust their leader, see their sense of belonging rise 19 times. Their odds of believing their leader supports them through change rise 38 times when these elements are present.
Mindi Cox, chief people and marketing officer at O.C. Tanner, said organizations do not have to choose between employee well-being and high performance.
"When employees feel trusted, supported in their growth, and recognized for their contributions, they're more likely to embrace change, innovate, and bring their best to work every day," she said.
