Why Leaders Need to Take Action to Improve Employee Wellbeing
Mental health issues are becoming more prevalent in the workplace, particularly since the onset of the pandemic. Mental health doesn’t discriminate among age, race, religion, gender, disabilities, or sexual orientation – it affects all individuals from all backgrounds and communities. So, why is such an important contributor to our overall health and wellbeing such a taboo topic, especially in the workplace?
This article will explain how mental health affects employees in the workplace, work-related risk factors to control, how to take action as an employer, and the benefits of fostering an environment that openly communicates mental health awareness and prevention.
The Growing Mental Health Challenge
- 1 in 5 Canadians report experiencing a mental health problem in any given year¹.
- Work-related stress drives up to OHS costs of over $3 billion annually in Canada².
- Burnout affects 44% of employees globally³ and contributes to absenteeism and turnover.
These figures underscore that poor mental health isn’t just an individual issue—it’s an organizational and societal challenge.
What struggling employees experience (and signs to look out for)
Employees who are struggling with their mental health are in survival mode in both their personal lives and in the workplace. They often feel:
- Overwhelming psychological distress leading to burnout.
- Anxiety about performance and job security.
- Isolation from colleagues and reduced communication.
Key signs managers should monitor include increased errors, frequent absenteeism or presenteeism (showing up but under-performing), irritability, withdrawal from team interactions, and sudden drops in quality of work.
Consequences of poor mental health:
For individuals:
- Decrease in job satisfaction
- Reduced engagement and creativity
- Poor decision making and accountability
- Increased absenteeism and presenteeism
- Heightened risk of chronic health conditions
For organizations:
- Low morale and trust
- Turnover rates that can exceed 18% annually in high-stress industries⁵
- Decreased productivity—up to 20% loss in output due to mental health challenges⁶
- Reputational damage and client dissatisfaction
- Higher healthcare and disability claim costs
Consequences of poor mental health in the workplace for organizations:
- Low morale
- Lack of trust from employees
- Increased turnover rates
- Decrease in productivity
- Poor reputation
- Poor client satisfaction
- Less profitability
Work-related risk factors
- Inadequate Health & Safety Policies: Lack of comprehensive policies on psychological health can leave employees unprotected. Organizations with robust psychological health frameworks see 30% fewer claims for stress-related illness⁷.
- Poor Communication & Management: Studies show that 75% of workers say a negative manager is the top factor in workplace stress⁸. Transparent, empathetic leadership is critical.
- Lack of Support Resources: Only 40% of Canadian workplaces offer mental health training for managers⁹. Without support, employees struggle to access help.
- Excessive Performance Pressure: Unrealistic performance targets contribute to burnout in 60% of employees globally³.
- Job Insecurity: During economic uncertainty, 54% of employees report increased anxiety about job stability¹⁰.
- Absence of Psychological Safety: Teams with high psychological safety are 12x more likely to demonstrate high performance¹¹—yet many organizations still haven’t embedded this into their culture.
Taking action as an employer
There is no excuse for inaction. Employers must implement multi-layered initiatives:
- Policy Creation & Review – Develop a Psychological Health & Safety policy aligned with CSA Z1003-13/BNQ 9700-803/2013 standards.
- Early Intervention & Training – Train managers to recognize early warning signs and to conduct supportive conversations.
- Communication & Awareness – Launch internal campaigns, town halls, and e-learning modules promoting mental health literacy.
- Accessible Support Resources – Provide Employee Assistance Programs (EAPs), digital mental health apps, and third-party counseling.
- Leadership Modeling – Encourage leaders to share their own mental health journeys, reducing stigma and normalizing help-seeking.
Fostering a positive, preventative culture
- Normalize Dialogue: Host monthly check-ins or “mental health moments” in team meetings.
- Promote Work-Life Harmony: Adopt policies such as “right to disconnect” and flexible schedules—organizations with flexible work report 10-15% higher employee satisfaction¹².
- Measure & Track: Use pulse surveys to monitor wellbeing metrics; companies doing so realize up to 15% improvement in morale within six months¹³.
Benefits of mental health awareness
By removing stigma and proactively supporting wellbeing, organizations gain:
- Higher Resilience & Innovation: Diverse and mentally healthy teams are 30% more innovative¹⁴.
- Improved Retention: Firms with strong mental health programs see 25% lower turnover¹⁵.
- Enhanced Productivity: Reduced absenteeism and presenteeism can boost output by **up to 12%**¹⁶.
- Stronger Employer Brand: 84% of job seekers consider an employer’s mental health support a deciding factor¹⁷.
When You Need Expert Support
If your organization faces obstacles in implementation—or if conflicts around mental health arise—engaging a neutral third party can help. Global Mindful Solutions offers:
- Workplace Mediation & Investigation to address disputes and systemic issues.
- Restorative Facilitation to rebuild trust and co-create healthier cultures.
- Leadership Coaching on psychological safety, stigma reduction, and trauma-informed practices.
Our compassionate, evidence-based approach empowers all participants to find solutions that propel both individual wellbeing and organizational success.
613-869-9130 | info@globalmindfulsolutions.com
343 Preston Street, Suite 1100, Ottawa, ON, K1S 1N4
Related articles on company culture and mental health in the workplace:
- Workplace Bullying vs. Harassment
- How to Improve Diversity, Equity, and Inclusion in the Workplace
- Recognizing and Responding to Racial Discrimination in the Office
- How to Establish Trust in the Workplace
- Workplace Investigations and Mental Health
- Guiding the Path to Organizational Resilience
- Taking a Trauma-Informed Approach in Workplace Conflict Resolution
- The Importance of Promoting Mental Health in the Workplace
- The Cost of Unresolved Conflict
- Positive Work Cultures Are More Productive: Here’s How to Achieve Them
- Leadership Tips on How to Foster Community in Hybrid Environments
- Promoting Psychological Safety in the Workplace
Resources:
¹ CMHA, 2023 ² Canadian Centre for Occupational Health and Safety ³ Microsoft Work Trend Index, 2022
⁴ The Lancet Psychiatry, 2021 ⁵ Mercer Global Talent Trends, 2022
⁶ WHO, 2022 ⁷ Deloitte Mental Health Report, 2023
⁸ Gallup, State of the Global Workplace, 2023 ⁹ Mental Health Commission of Canada, 2022
¹⁰ ADP Canada, 2023 ¹¹ Google Re:Work, Project Aristotle, 2019
¹² FlexJobs & Mental Health America, 2021 ¹³ Qualtrics Employee Experience, 2022
¹⁴ Deloitte, Diversity and Innovation, 2022 ¹⁵ Forbes Human Resources Council, 2022
¹⁶ Harvard Business Review, 2021 ¹⁷ Glassdoor Job Seeker Survey, 2023
