‘Employers should not assume employees know what support is available’
New Zealand employers are facing sustained productivity losses of up to 94.3 workdays a year per affected employee, as new data shows workplace anxiety, isolation and depression have failed to improve for three straight years
The figures come from TELUS Health's Mental Health Index, which found nearly 2 in 5 New Zealand workers (38%) report dealing with anxiety, while almost a third (30%) say their mental health is already undermining their productivity and ability to meet goals. The average productivity loss recorded among New Zealand's worst-affected workers is well above the 59.4 days seen across the Tasman in Australia.
Jamie MacLennan, Region Head, APAC at TELUS Health, said the data confirms anxiety remains the most significant unresolved mental health challenge in New Zealand workplaces.
"Anxiety continues to be the lowest-scoring mental health measure among New Zealand workers and has remained the most significant mental health challenge identified in the Index for three years. In the first quarter of 2026, nearly four in 10 workers report frequently feeling anxious and 31% say their mental health is negatively affecting their productivity at work. This means that companies need to understand, and address, the fact that this is a persistent issue affecting their organization."
Leadership gaps compound the problem
The Index also identified a leadership support gap. Only 4% of workers said senior leadership support for work-life balance had become much more supportive over the past year, while 19% said they did not believe their leaders could maintain healthy work-life boundaries themselves. That group recorded mental health scores nearly nine points lower than workers who felt otherwise.
Access to formal support channels is also lacking. 55% of workers said their employer either does not offer an Employee Assistance Program (EAP) or they are unsure if one exists.
MacLennan said addressing the plateau requires investment in leadership capability rather than new benefits alone.
"Employers can start by creating psychologically safe workplaces where people feel comfortable asking for help without fear of stigma. Leadership matters enormously here. The Mental Health Index Barometer shows that leadership quality has a direct impact on employee wellbeing, engagement and performance."
Mental health conditions are driving nearly a third of income protection insurance claims in New Zealand, according to a previous report.
Culture, finances and the road ahead
MacLennan added that workplace culture itself carries direct commercial consequences.
"Whether they are virtual or in-person, people spend a large portion of their lives at work. When employees feel supported and psychologically safe in their workplace, they're likely to be more engaged, creative, productive and resilient. It is crucial that businesses understand that this is not a 'nice to have,' rather it is a commercial imperative."
Financial pressures are compounding the strain, MacLennan said, pointing to a direct link between financial insecurity and declining mental health outcomes.
"We can see that financial wellbeing and mental wellbeing are deeply connected. When employees are worried about money, it can create ongoing stress that affects focus, engagement, productivity and long-term career development."
The Index also found gender gaps persist across the workforce, with women continuing to report greater strain than men.
"Women represent a significant portion of today's workforce, making their experiences central to organizational success. However, since the first MHI report was produced, women have consistently scored lower than men, highlighting that women continue to experience higher mental health strain than men,” said MacLennan.
“Health transitions experienced by women, like perimenopause and menopause, remain under-researched and under-supported, and can create invisible barriers for women that can affect performance and retention at critical career stages."
Separately, the Index found 59% of workers who use artificial intelligence tools report improved efficiency, a potential offset for productivity losses tied to presenteeism and disengagement.
What can employers do?
MacLennan pointed to manager training, clearer communication about existing wellbeing support, and stronger financial wellbeing programs as priority actions for employers, alongside sustained investment in psychologically safe workplace cultures.
“Most importantly, employers should not assume employees know what support is available. The research found many workers are unclear about workplace wellbeing programmes, with more than half (55%) of workers are either unsure or believe their employer does not offer an employee assistance program. This clearly highlights the need for ongoing communication and awareness-building,” MacLennan said.
Earlier this year, The New Zealand government unveiled a free toolkit aimed at improving mental health in workplaces. Mental Health Minister Matt Doocey said the new toolkit is part of the government's plan to deliver faster access to support, more frontline workers, and a better crisis response.
On the area of financial wellbeing, MacLennan said: “Offering financial education, providing access to financial planning resources and benefits are ways employers can support their employees’ financial wellbeing.
“Organisations should also ensure employees understand what financial wellbeing support already exists.”
