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The Cost of Mental Health Is Rising

We’re sharing tools employers can use to mitigate these increases! 

The cost of living, interest rates, and stress levels are increasing. Employers have noticed that, along with those factors, absences from work due to mental health conditions are also increasing. According to Sun Life Canada, long-term disability (LTD) mental health claims are almost double compared to the next leading cause of disability. They also report that 30% of all LTD claims are related to mental health but account for 70% of all claims costs. Employers cannot ignore the rising cost of mental health. 


These statistics feel overwhelming for employers. After all, most employers are not mental health or medical specialists. Many organizations don’t address the impact of mental health in the workplace until they have to, for example, when faced with a claim for time off work. It is important to understand that mental health conditions are already affecting your workplace. The Canadian Association of Mental Health found that

  • 1 in 5 Canadians will experience challenges with their mental health or be diagnosed with a mental illness by age 40, and 
  • 50% of Canadians will have or have experienced a mental illness.


There are people in your organization right now who are doing their best while coping with mental illness. If employers look away and hope that everyone will remain present and productive, they are wrong. Failure to provide meaningful support will be costly in terms of talent, workplace culture, and the bottom line. There are three things that employers can do to support employees and create a workplace where everyone has the opportunity to be successful!


1. Employee Assistance Plan

Research has confirmed that timely access to specialized care is one of the key factors in improving outcomes for mental illness. The counselling services provided by an Employee Assistance Plan (EAP) make a difference. These services can be accessed quickly and remove financial barriers that many people face when trying to get treatment for their mental health. EAP services can be the first step back to good health in an overburdened medical system. This type of employee benefit doesn’t have to be expensive. We offer a pay-per-use option that meets the needs of many small to mid-sized businesses across Canada. In addition to counselling, EAP services include crisis response, employee wellness services, and trauma support. Instead of waiting weeks for an appointment with their family doctor and then a few more weeks for a referral to a community-based counsellor, EAP services can often be accessed within less than 72 hours.     


2. Performance Expectations

Adjusting, updating, and modernizing performance expectations can be a great way to help managers and employees be more successful! Unfortunately, many organizations have outdated job descriptions and performance expectations, making it almost impossible for employees to thrive. Step one is to improve job descriptions to ensure accuracy. Step two is to review performance expectations and confirm they align with updated roles and responsibilities. Step 3 is to introduce options for flexibility within roles so that employees are more likely to be successful at work while balancing demands from their personal lives. This type of performance management can yield great results.     


3. Inclusion

If you haven’t already, now is the time to create a workplace where differences are accepted and embraced. There are many ways to accomplish this, and here are a few ideas to get you started.

  • Change your organization’s narrative around what success looks like. Instead of celebrating hustle culture, burnout, and overwork, focus on successes that are relatable and achievable. 
  • Become more inclusive by normalizing respectful conversations about mental health. The statistics tell us almost everyone is affected by mental health, either personally or by association. Talking about it helps people to feel more accepted and included. That alone can have a positive impact on the workplace! 
  • Regularly share information about the benefits, services, and tools that employees are eligible to access.  Do this using different forms of communication like verbal, email, text messaging, social media, printed posters, and any other ways your organization communicates important information. 


The cost of mental health is rising, and employers will bear some of that financial burden. It may seem impossible to overcome, but there are proven tools and strategies available. We can help by setting up an EAP, reviewing benefits costs and identifying areas for saving, and providing human resources consulting designed to help employees be successful at work. 

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