Quarterly Check-in: Addressing mental health in the workplace

Many Canadian workers go without support, leaving chronic stress unmanaged and increasing the risk of long-term harm. Credit: Getty Images/Drazen Zigic.

Mental health challenges among Canadian workers are on the rise, with serious implications for employers, employees, and the broader economy. Olga Morawczynski, co-founder and CEO of Heal-3, and CSA public policy fellow who authored the report Navigating the Mental Health Crisis in Canada: The Critical Role of Employers, offers her perspective on what is driving these trends and how organizations can take action.

What factors are driving the rise in poor mental health among Canadians?

Three key factors have had a disproportionate impact on Canadians’ mental health over the past five years.

First, the lasting impact of COVID-19 cannot be overstated. While mental health in Canada had already been on the decline for over a decade, the pandemic accelerated this trend. Canadians are still grappling with its aftermath. Extended lockdowns, prolonged isolation, the shift to hybrid work, and now a return to full-time, in-person roles may have all contributed to ongoing stress and instability.

Second, widespread uncertainty continues to fuel anxiety. Economic pressures, political polarization, global conflict, and job insecurity have created a climate of fear. Many Canadians are unsure about their financial futures and employment prospects, which takes a serious toll.

Finally, access to mental health care remains limited. Despite growing recognition of the link between mental and physical health, they are still not treated with the same urgency. Public services are hard to access, private care is expensive, and benefit plans often offer minimal coverage. Many people go without support, leaving chronic stress unmanaged and increasing the risk of long-term harm.

What progress has been made in addressing mental health in the workplace over the past decade? 

Over the last decade, the primary focus has been on raising awareness. Public campaigns, media attention, and growing openness have reduced stigma and encouraged more honest conversations about mental health in society and the workplace.

A major milestone came in 2013 with the publication of  CAN/CSA-Z1003-13/BNQ 9700-803/2013 (R2022), Psychological health and safety in the workplace. The first of its kind globally, the standard highlighted employers’ responsibility to promote workers’ psychological health and safety (PHS) and to identify and eliminate hazards within organizational control that pose a risk of harm.

The standard specifies requirements for a documented, systematic approach using a PHS management system framework integrated into organizational policies and processes.

The combination of public campaigns and the publication of the standard has shifted the conversation. Today, many organizations recognize the impact of the work environment on health, safety, and well-being. They are beginning to understand their role in preventing harm and supporting psychological health and safety.

But awareness alone is not enough. The next phase must focus on action, including integrating a PHS management system into existing business and occupational health and safety practices.

What is the business case for investing in mental health? How much does poor mental health cost employers?

Poor mental health is costing Canadian businesses far more than many realize. Often called “the invisible bottom-line sucker,” its financial impacts, such as absenteeism, attendance without productivity, disability leave, and turnover, are spread across departments and budgets, making them difficult to quantify.

That is beginning to change. An upcoming CSA Public Policy report will present the first comprehensive analysis of the total cost of poor mental health to Canadian businesses and the broader economy. The results are alarming. The financial burden is significantly higher than anticipated, while investment in prevention remains low.

This creates a strong business case. Preventive strategies – such as mental health training, benefits alignment, and implementing a PHS management system – are not just cost-effective; they are essential to long-term performance and sustainability. 

What are the potential risks – legal, reputational, or operational – if employers fail to address psychological health and safety? 

The risks of inaction are growing. Employers are increasingly expected to identify and manage potential psychosocial hazards. Legal cases across Canada reflect a broader understanding that psychological harm can be work-related, and some provinces are introducing legislation mandating protections for mental health.

Reputational risks are also significant. Organizations perceived as unsupportive may face long-term brand damage affecting recruitment, retention, and customer trust.

Operationally, neglecting PHS may increase absenteeism, presenteeism, disability claims, and turnover, directly affecting productivity and profitability. PHS is now a compliance, performance, and risk management issue – not just a wellness concern.

What are some low-cost or scalable ways employers, especially small and medium-sized businesses, can support mental well-being? 

Supporting mental health does not require large budgets or complex programs. Practical, scalable strategies can deliver meaningful results.

A key starting point is downloading CAN/CSA-Z1003-13/BNQ 9700-803/2013 (R2022), Psychological health and safety in the workplace, available at no cost. From there, it is important that leaders and managers are trained in mental health and PHS, as their decisions and behaviours strongly influence workplace culture. As legislation evolves, leaders must understand their responsibilities – particularly through the lens of the occupational health and safety internal responsibility system.

Employers can conduct a basic assessment to identify psychosocial risks such as workload, role clarity, recognition, or interpersonal issues. Even a short pulse survey or facilitated discussion can yield valuable insights. Based on findings, they can make incremental changes – adjusting schedules, increasing flexibility, or improving communication during change.

Starting small is effective. Pilot a few changes within one team or department and expand based on feedback. Free resources from the Mental Health Commission of Canada and the Canadian Centre for Occupational Health and Safety can guide this work. CSA Group also offers a complimentary handbook to help implement the standard, from initial planning to full implementation.

Finally, reviewing benefit plans shows commitment. Even modest improvements, such as expanded therapy coverage or access to virtual care, can support long-term well-being. 

What needs to happen over the next 10 years to reverse the rise in mental health challenges and ensure lasting change? 

The past decade focused on awareness; the next must be defined by action. Fortunately, four converging forces are creating the conditions for lasting change.

First, legislative shifts are redefining employer responsibilities. For example, Nova Scotia is updating its occupational health and safety laws to include psychological health, effective September 2025, signaling that employers have clear legal obligations to protect both physical and psychological safety.

Second, the upcoming revision of CAN/CSA-Z1003-13/BNQ 9700-803/2013 (R2022), Psychological health and safety in the workplace – a draft of which will be open for public review this October, and scheduled for publication in late 2026 – emphasizes inclusivity and cultural responsiveness for all workers while providing clearer requirements and updates reflecting advancements in PHS management systems.

Third, evolving workforce expectations are reshaping organizational culture. Many workers now bring mental health literacy and expectations around inclusion, flexibility, and transparency, prompting employers to improve workplaces.

Finally, rising costs related to psychological injury and disability are putting unsustainable pressure on compensation systems. The financial imperative for prevention and early intervention is becoming impossible to ignore.

Together, these forces are driving a fundamental shift: PHS is a core responsibility. The window for passive awareness has closed. What comes next will determine not only the well-being of our workforce, but the resilience and sustainability of our institutions.

CSA Group is a global organization dedicated to safety, social good and sustainability. It is a leader in standards development and testing, inspection, and certification around the world, including in Canada, the U.S., Europe and Asia. CSA Group’s mandate is to hold the future to a higher standard.