Mental Health in the Workplace 2025: What Canadian Employers Need to Know
Overview
The Mental Health in the Workplace 2025 report, conducted by Pollara in partnership with Workplace Strategies for Mental Health, reveals a Canadian workforce under significant strain. Based on a national sample of 5,008 employed Canadians, the study examines the impact of mental health diagnosis on psychological health and safety, stigma, and burnout—all in the context of increasing economic uncertainty .
The findings paint a concerning picture: burnout is rising, disclosure remains low, and psychological safety is declining. While most employees with mental health diagnoses remain productive, fear of career consequences keeps many from seeking the support they need.
These trends point to a broader reality for employers. Mental health challenges often appear in the workplace long before someone seeks professional help, showing up as withdrawal, irritability, interpersonal conflict, reduced engagement, absenteeism, or silence. Organizations have an opportunity to strengthen their capacity to recognize risk early and connect employees with support before situations escalate.
Why It Matters
The report reveals that 39% of Canadian employees report feeling burnt out, an increase from 35% in 2023 . More concerning, 1 in 2 employees (52%) have faced mental health challenges that affected their work, yet only 1 in 3 (33%) disclosed it .
The primary reason for staying silent is fear of career consequences or being seen as less capable . Their fear is significant with 57% of employees believe disclosing a mental health issue could negatively impact their career .
The data also reveals a critical skills gap: while 65% of employees say co-worker support and 59% say manager support have the strongest positive impact on mental health, only 67% of managers feel equipped to support employee mental health.
For employers, this matters because delayed access to care often means workplaces become the first place where signs of distress are noticed. Managers, colleagues, and trusted peers are increasingly the people who recognize when someone is struggling before formal supports are accessed.
Key Points
Burnout is rising and costly: 39% of Canadian employees report feeling burnt out (up from 35% in 2023). Burnout costs employers $5,500 to $28,500 per employee annually. For a company with 500 employees, that's $3.4 million per year in lost productivity and salaries .
Prevention pays: Companies that prioritize burnout prevention see a 30% lower burnout rate (27% vs. 39% average). Shifting from inaction to prevention can save $3,400 per employee per year (or $1.7 million for a 500-employee company)
Disclosure remains low: 52% of employees have faced mental health challenges affecting work, but only 33% disclosed it. Among those with a formal diagnosis, only 42% have disclosed it at work .
Support from peers and managers matters most: Co-worker (65%) and manager (59%) support have the strongest positive impact on mental health. More than senior leadership (48%) or HR (38%) .
Psychological safety is declining: Only 59% of employees feel their workplace is psychologically safe. The feeling that people from all backgrounds are treated fairly has dropped from 74% in 2023 to 71% in 2025 .
Accommodations work but are rare: Only 19% of employees with a mental health diagnosis received accommodations—but 83% of those who did found them effective in helping them perform their job .
Workplace stress is pervasive: 55% of Canadians find their workplace stressful, with 74% citing workload as the main source and 52% pointing to company leaders or culture .
Practical Takeaways
One clear workplace issue
Growing mental health concerns often emerge through everyday workplace behaviours before they become formal health issues. Employees may become quieter, disengage from colleagues, avoid difficult conversations, or struggle to manage conflict and workload.
These early behavioural changes are often visible long before someone accesses professional support, making early recognition an important part of a psychologically healthy workplace.
One early-intervention insight
Equip leaders and trusted employees to recognize small behavioural changes and respond with curiosity rather than assumptions.
A simple check-in such as:
"I've noticed you seem quieter than usual lately. How are things going? Is there anything you'd like to talk through or any support that would help?"
can create an opportunity for someone to access help before concerns become more serious.
One leadership gap to address
Only 67% of managers feel equipped to support employee mental health. This means one in three managers lack the confidence or tools to have these critical conversations. Organizations must invest in building this capability through practical skill development.
Crisis‑Ready Connection
The Mental Health in the Workplace 2025 report reinforces an important reality: mental health challenges are becoming more common while access to timely care is becoming more difficult. Manager and co-worker support have the greatest positive impact on mental health (65% and 59% respectively) . CRW equips these trusted individuals with the skills to provide that support effectively.
Only 36% of employees see real burnout prevention programs in place . CRW provides a practical, scalable framework to fill this gap.
The Crisis-Ready Workplace® Program helps organizations strengthen existing Psychological Health and Safety (PHS) and Occupational Health and Safety (OHS) programs by building practical human capability throughout the workforce.
Certified Crisis-Ready Interventionists® (CRIs)serve as visible, trusted upstanders who recognize early signs of distress, respond with practical, non-clinical support, and connect colleagues to appropriate resources before situations escalate.
Humans Helping Humans.
Every Workplace Needs People Who Know What To Do.
Policies and resources matter but when someone is struggling, people make the difference.
Learn how Crisis-Ready Interventionists help organizations recognize risk early, support colleagues in distress, and strengthen Psychological Health and Safety through practical action.
👉 View upcoming training programs: https://programs.crisisreadyworkplace.com/
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