2023 HR REPORT

The state of workplace health and wellness in Canada

2023 HR Report: Expert Roundtable
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Introduction

This report is published by Environics Research following a Canada-wide survey, conducted to understand the challenges expected by HR leaders and how they can be supported by organizations to maintain a healthy and productive workforce. The research was commissioned by Dialogue.

The 2023 survey was completed by 98 Canadian HR leaders (those with decision-making responsibilities about employee benefit plans) between January 17 and February 2, 2023. These HR leaders collectively influence and manage health and wellness benefits for over 50,000 employees.

Environics HR report: The state of workplace health and wellness in Canada

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01 Executive summary

Working colleagues

The top challenges HR leaders expect for 2023 are rooted in talent attraction and retention. While staffing is a human resources issue, it can lead to greater organizational challenges, such as lack of resources, productivity, innovation, collaboration, customer relationships, and business development.

HR leaders are aware of their employees’ poor mental state, and how it influences retention and acquisition. However, they also acknowledge that the mental health support currently available through benefits plans is insufficient.

It’s important for organizations to recognize the impact they have on their employees’ health and well-being, and realize that needs are changing. To create a healthier, more positive, and stable workforce, it’s crucial to focus on all aspects of well-being – including emotional, environmental, physical, social, and financial health.

Unfortunately, HR leaders often lack the organizational and financial backing to make changes. The good news? Those that have successfully implemented well-being initiatives report better job satisfaction, a more positive work environment, increased productivity, and better retention.

02 Main human resources challenges

Over the past three years, HR professionals have had to navigate an ever-changing workplace and a heavily impacted workforce. Looking forward to 2023, they indicate facing a number of challenges, with most of them interrelated and affecting each other.

HR challenges expected in 2023

Attracting talent/employees
75%
Mental health training/resources for managers
58%
Retaining talent/employees
69%
Employee job satisfaction
57%
Overworked employees
62%
Absenteeism related to health issues
56%
Employee mental health
61%
Employee well-being
56%
Measuring and reporting on the success of employee benefits
58%
Employee physical health
44%

*Darker colours represent those who reported the issue to be extremely challenging, and lighter colours represent those who reported the issue to be somewhat challenging.

While attracting and retaining talent is the most challenging area, an organization’s ability to do so is impacted by other workforce issues: overworked employees, mental health, well-being, absenteeism due to health issues, and overall job satisfaction.

What’s more, the impact of mental health issues on physical health is well-studied. While worsening physical health is not currently concerning for the majority, untreated mental health issues can lead to chronic physical conditions – which can have organizational ramifications in the form of low productivity, absenteeism, and more. 

Well-being is more
than just physical. 

Almost all HR leaders believe that physical health, mental health, financial circumstances, and work-life balance contribute to overall well-being – and Canadians agree. This suggests that HR leaders are well aware of the well-being needs of their employees, and are expecting to face challenges in meeting these needs.

Factors HR leaders believe are important to well-being

96%
Financial situation
94%
Work-life balance
94%
Mental health
93%
Physical health

*Darker colours represent those who reported the issue to be very important, and lighter colours represent those who reported the issue to be important.

HR leaders agree that physical health, mental health, financial circumstances, and work-life balance contribute to overall well-being.

HR leaders agree that physical health, mental health, financial circumstances, and work-life balance contribute to overall well-being.

Dialogue’s key insights

Talent attraction and retention are symptoms of a much bigger problem. When employees feel overworked, struggle with mental health and well-being, and have low job satisfaction, they may be more likely to jump ship.

This means that employers who are unable to mitigate these well-being issues may have a harder time attracting top talent.

Employers striving to grow their workforce need to reconsider their benefits plans and workplace culture. HR leaders should ask themselves:

  • Are we promoting a healthy work-life balance? Employers need to evaluate their policies around work hours, paid time off, and flexible scheduling to ensure they are promoting a healthy work-life balance for their employees.
  • Do we offer sufficient resources and support for employee wellness? Employees should feel empowered to maintain and improve their overall well-being, with easily accessible solutions that meet their needs.
  • Are we creating a safe and healthy work environment? Employers should provide guidance on healthy work habits, such as ergonomic workstation setups, encouraging regular breaks, and strategies for managing stress and isolation.

03 Employee mental health

Employers have a significant role to play in employee mental health, especially those adopting a hybrid (home and office) model. 31% of HR leaders who have a remote workforce believe that employees face worsened mental health. Poor mental health has significant negative effects on workplace relationships, productivity and motivation, energy, and employee retention.

In a 2023 survey of Canadians, almost 4 in 10 remote workers noticed mental health issues associated with working from home.

36% of remote employees report:

More stress and anxiety

More stress/anxiety
(55%)

Reduced productivity

Reduced productivity
(39%)

Increased absenteeism

Increased absenteeism
(33%)

Struggling employee

3 in 10 HR leaders with a remote workforce believe that employees’ mental health is getting worse.

HR leaders see prevention as vital for employee mental health.

There is further evidence that HR leaders are concerned with the mental health of their employees.

89% leaders indicate it is important to provide:

Mental health support

Mental health support
(regardless of cost) when evaluating employee benefit programs

Mental health tools

Mental health tools/
resources employees can use themselves

Mental health training

Mental health training
for managers

Therapist with a patient

Plus, 87% agree that providing proactive mental health support can help prevent mental health issues or treat them before they get worse. 

Despite recognizing the importance of promoting and supporting good mental health, 5 in 10 HR leaders (48%) report that their employee benefits programs do not provide access to a mental health professional. Another 4 in 10 believe their current mental health support is insufficient (29%) or is non-existent (14%). And working Canadians agree at similar rates.

The potential of self-guided mental health tools is widely recognized.

With the importance HR leaders place on prevention, there are opportunities to provide more support than traditional access to a psychotherapist – who are often consulted when mental health issues are already present. 

91%

of HR leaders agree that mental health tools and resources that employees can use themselves would facilitate proactive self-care.

81%

of Canadians agree that self-guided tools could help them be more proactive about mental health, and they would be likely to use such tools. 

Group 15725
More mental health training is needed for managers. Employers and employees are on the same page:

More mental health training is needed for managers.

Employers and employees are on the same page: managers are not well-equipped to address mental health issues within their teams. 

7 in 10 employers have not provided sufficient training to managers to help them recognize and support employees’ mental health needs.

7 in 10 employers have not provided sufficient training to managers to help them recognize and support employees’ mental health needs.

3 in 10 have not provided any training at all, which means mental health issues may be misunderstood or go unnoticed. 

Of those, 3 in 10 have not provided any training at all, which means mental health issues may be misunderstood or go unnoticed. 

76% of employees realize that managers have not been sufficiently trained or lack the training.

Working Canadians agree – 76% of employees realize that managers have not been sufficiently trained or lack the training.

Dialogue’s key insights

HR leaders recognize the need for preventative mental health care, and many acknowledge that their current offering is insufficient. To make their offerings more complete, they must provide services that are flexible and accessible.

By offering a variety of resources, like self-guided options for those seeking preventive therapy (including workbooks, toolkits, or digital resources) and access to practitioners for those needing more intense intervention, HR leaders can provide support across the continuum of care.

Continuum of mental health care

  • Prevention
  • Early Intervention
  • Treatment
  • Remission
  • Maintenance & relapse prevention

This means their offering is more likely to be used by more people. Plus, it helps ensure issues are treated before they get worse, reducing the risk of organizational challenges like low retention, reduced productivity, and high absenteeism down the line.

04 Employee physical health

While working from home has its advantages – including better work-life balance and improved relationships – some Canadians indicate that physical health has worsened. 

43%

of Canadians have experienced muscle or skeletal pain related to their work set-up at home.

In fact, a majority of HR leaders—over 80%—who notice worsened physical health in their remote or hybrid employees, also observe that there’s a related increase in stress, anxiety, and productivity issues.

Employee physical health

However, they also indicate that critical benefits that could help employees stay active and manage these issues are missing from their current plans:

47% do not include paramedical coverage.
do not include paramedical coverage.
76% do not include wellness spending accounts.
do not include wellness spending accounts.
77% do not include healthcare spending accounts.
do not include healthcare spending accounts.
Employee physical health

Dialogue’s key insights

Mental health may be at the forefront, but its impact on physical health (and vice versa) can’t be overlooked. A sedentary lifestyle can increase the risk of stress, burnout, and anxiety. And the opposite is also true. Physical activity is a key part of maintaining good mental health. But it can be difficult to muster the energy or motivation to stay active when dealing with a mental illness.

Employers must ensure that their workforce has access to services that help them manage both. Flexible mental health services support employees with the appropriate level of care for their needs. Inclusive wellness programs encourage regular movement, regardless of employees’ health or fitness level. Together, they can help prevent or delay chronic health conditions, and manage lifestyle changes.

05 Employee well-being

HR leaders agree: good mental and physical health are vital to well-being. But they also recognize the importance of other factors – like financial stability and healthy family relationships – in creating a happy and fulfilled workforce.

only 4 in 10 provide support for these well-being issues.

However, only 4 in 10
provide support for these
well-being issues.

48%
Financial counselling
44%
Family counselling
42%
Legal counselling

Well-being initiatives drive notable improvements. 

While almost all HR leaders are interested in improving employee well-being, a quarter have not taken any initiatives to do so. Organizations that have taken initiatives found them to be helpful – and Canadian employees concur.

This is significant for hybrid and remote workplaces. When employees feel more supported at work and benefit from better relationships, it can have a direct and positive impact on their well-being – and their desire to stay with their employer. 

Impact of well-being initiatives taken by employers, as reported by employees

Better job satisfaction
44%
Better retention
34%
More positive work environment
44%
Better relationship with colleagues
32%
Feel more supported at work
39%
Better relationship with managers
29%
Increased productivity
39%
Less absenteeism
24%

Initiatives, programs, and benefits aimed at promoting employee well-being can enhance an organization's ability to effectively deal with critical HR challenges. For example, when job satisfaction and productivity are improved, employers may be less likely to face talent acquisition and retention issues. In other words, investing in employee well-being is a strategic move that can yield significant long-term benefits.

44% of employees report better job satisfaction and a more positive work environment thanks to well-being initiatives.

44% of employees report better job satisfaction and a more positive work environment thanks to well-being initiatives.

Dialogue’s key insights

Remote and hybrid workplaces are here to stay. So, to truly reap the benefits, HR leaders must ensure that employees are able to do their best work. Decentralized work environments are often at risk of losing their sense of organizational belonging, but the right wellness program can reinforce it. 

Through a comprehensive benefits plans and essential wellness services, HR leaders can:

Clients opt

Demonstrate investment in employees, making them​​ feel cared for and connected to the organization

Crisis Intervention opt

Develop a sense of shared purpose, through fitness classes, wellness challenges, or group activities

Internal medical board opt

Foster a positive workplace culture, by aligning with an organization's values and mission 

Ultimately, investing in wellness helps keep employees feeling mentally and physically fit, productive, engaged, and happy — all of which directly impact talent attraction and retention.

06 Barriers to change

image 10 opt

Organizations face more than just a human resource challenge when it comes to retaining and attracting talent. An unhealthy workforce can also lead to a cascade of business issues, including lack of resources, reduced productivity, ineffective teamwork, poor customer relationships, and limited business development.

To reduce the far-reaching implications for the organization, HR leaders need to tackle the health and wellness concerns at the root of staffing problems.

While they recognize workforce challenges and seek to address them by improving employee benefits, some find it difficult to secure financial or organizational backing.

Barries to change
  • 50% say it’s difficult to gain financial resources for HR initiatives.
  • 46% were prevented from improving benefits due to financial constraints.
  • 44% had to remove or reduce benefits due to financial constraints.
  • 35% say it’s difficult to gain C-suite support for human resource priorities.

C-suite buy-in is top of mind for HR leaders. 

Improving benefits is also made difficult by the various stakeholders involved in choosing benefits plans. HR leaders have identified the following as significant influencers:

Groups influencing employee benefit program decisions

86%
c-suite
76%
Employee feedback
72%
Finance department
66%
Group advisor/ broker

*Darker colours represent those who reported the issue to very influential, and lighter colours represent those who reported the issue to be somewhat influential.

Happy women

The right benefits provider is crucial.

45% of HR leaders find it difficult to ensure employees make the most of their benefit plans. And, while 9 in 10 HR leaders agree that employees know how to access their benefits, a quarter of employed Canadians disagree. In fact, some employees state that they are not aware of the benefits available to them, or don’t know how to access them. And over 50% of all employees are only somewhat aware.

To further complicate matters, 7 in 10 HR leaders indicate having multiple providers for their benefits. This can result in reduced awareness among employees regarding the full extent of available benefits and how to access them.

Having multiple providers can also limit the ability to track and measure the impact of different programs, making it harder to gain financial and organizational support for improving benefits. A single benefits provider for all programs can alleviate many of these issues.

In fact, over 50% of HR leaders find it challenging to monitor the impact of benefit plans, particularly those related to wellness or mental health. These benefits lack the tangible measures often associated with other benefits, such as prescription coverage, dental insurance, or vision care.

45% of HR leaders find it difficult to ensure employees make the most of their benefit plans.

45% of HR leaders find it difficult to ensure employees make the most of their benefit plans.

Dialogue’s key insights

Obtaining leadership and financial support for HR initiatives has proven to be a challenge. To overcome this barrier, HR leaders should consider adopting programs that can demonstrate value, return on investment, and measurable outcomes. 

They should seek benefits providers who offer transparent reporting and tracking, with a focus on utilization, health, and engagement metrics. This equips them with the evidence needed to justify investment and gain organizational buy-in. Plus, it helps HR leaders prioritize initiatives that are most likely to succeed and have the greatest impact on workforce wellness. 

The right partner can boost employee adoption of benefits programs and support with long term engagement. Opting for a provider that offers a single point of access for all programs further reduces confusion around how to access services and what programs are available. The best part?  Increasing utilization and engagement rates can further highlight the need for such programs to stakeholders.

07 Key considerations

Attracting and retaining talent remains a top challenge in 2023. However, HR leaders recognize the vital role that good physical health, mental wellness, and well-being play in creating a stable, productive, and attractive work environment.

The importance of mental health for overall well-being is widely recognized by employees and employers alike, but many agree that current support is inadequate. To truly meet the needs of their workforce, organizations should consider solutions that empower employees to be in control of their mental health. Self-guided tools and resources that employees can use on their own – without having to consult with a professional – make it easier to access preventative care options quickly.

Final-img (1)

As organizations prepare to face a host of challenges, both current and looming, they must think outside the box. Employers should opt for programs that are flexible, accessible, and inclusive.

  • Diverse range of care options to match the intensity of treatment needed
  • Easy, simplified access regardless of location or ability
  • Personalization and customization for individual needs

When employees feel that their unique needs and circumstances are taken into account, they’re much more likely to embrace and benefit from such programs. And when that happens, organizations stand to gain as well. With organizational buy-in, HR leaders can continue to expand and improve their offerings to provide even better support for each and every member of their workforce. 

08 About Environics research

Environics Research has a 50 year history of delivering evidence-based solutions to clients working in a range of sectors and industries in Canada. Our team is drawn from many disciplines – from business and marketing, to sociology and urban affairs. This mix makes Environics a creative and intellectually vibrant research and consulting firm, where methodological rigour and unrivaled analytical capabilities come together. Our experience, our people and our sophisticated tool kit help our clients get answers to their most important questions.

Today, Environics' international clients include a number of the world's largest consumer marketers. In Canada, most of the country's governments, many leading non-profit entities, and businesses working in a range of industries (including financial services, telecommunications, natural resources, print and broadcast media, healthcare and pharmaceuticals, and packaged goods) trust Environics to develop actionable insights that inform evidence-based decision-making.

Environics has an extensive record of conducting health-related research, and of delivering evidence and insight to inform public health strategies and health policies at the provincial and federal levels.

Headquartered in Toronto, we employ more than 50 staff across Toronto, Montreal and Ottawa.

For more information about Environics Research or questions about this report, please contact:

Group 15728 new 2

Ahsan Sadiq


image 11-4

Vice President, Health & Wellness
ahsan.sadiq@environics.ca
environicsresearch.com

2023 HR Report: The state of workplace health and wellness in Canada

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