Sounding Board: How to close the mental-health benefits utilization gap in Canadian workplaces

Indeed, benefits aren’t always used or accessed as expected. The gap is tied to issues around trust, design and perceived relevance. Here are a few of the key barriers:

• Workplace discrimination and fear of stigma

While mental-health challenges affect 58 per cent of employed Canadians either personally or through a close family member, according to a 2025 report by Mental Health Research Canada, only 33 per cent disclose this to their employer and just 42 per cent of those with a formal diagnosis speak up.

Read: Flight Centre wins award for mental-health training, efforts to reduce stigma

The main reason for silence is the fear of negative career consequences or being perceived as less capable, according to the report. When organizational culture supports bias, stigma or unfair treatment, employees are less likely to trust that the system will handle their vulnerability safely or confidentially and may be unwilling to seek mental-health support when the need arises.

• Weak sense of belonging and workplace loneliness

Another key barrier is the lack of strong emotional connection and belonging in the workplace. Even in environments with high levels of employee satisfaction, teamwork and collaboration, a 2024 study by the America Psychological Association found a quarter (26 per cent) of employees still reported experiencing loneliness or isolation at work.

This shows employees are prone to feeling emotionally disconnected or unsupported regardless of the work environment and the absence of true belonging reduces trust, openness and the likelihood of speaking up about personal struggles, which ultimately contributes to the underutilization of mental-health benefits.

• Distributive injustice

When employees feel the organizational support they receive doesn’t tally with their contributions and effort, it can have an impact on their mental health and result in negative psychological and behavioural issues, including resentment, burnout, withdrawal, emotional exhaustion and distrust in the workplace systems. Over time, this can cause skepticism towards benefits intended to support employee well-being and reduce engagement with mental-health programs.

• Complexity and misalignment with workforce realities

A complex benefits platform, unclear instructions and high technical jargon will discourage use, particularly during moments of stress when employees need support most.

Read: Survey finds caregiving pressures affecting Canadian employees’ mental health, retirement plans

Similarly, a standardized benefits package may not adequately reflect diverse workforce needs. Working parents, for example, may require flexible or immediate support, newcomers may need culturally responsive or multilingual services and neurodivergent employees may require additional specialized services. When benefits don’t reflect the realities of the intended users, they’ll be underutilized.

How organizations can move from awareness to action

Closing the gap between awareness and utilization requires a deliberate, benefits-focused approach that focuses on design, accessibility, communication and relevance of mental-health offerings.

Leadership support is critical in shaping workplace culture and reducing mental-health stigma. This can be achieved through; encouraging employees to speak up without fear of stigma; leaders modelling openness and vulnerability about their mental health to build trust; reinforcing mental-health messaging throughout the year via multiple channels; prioritizing emotional well-being by managing workloads, maintaining flexibility, promoting work-life balance and leading with empathy; and training managers to recognize burnout, initiate supportive conversations and guide employees to the available resources.

Another way employers can close the gap is by aligning their mental-health benefits with employee needs and access.

According to a 2024 report from the Society for Human Resource Management, 46 per cent of employees who aren’t aware of their benefits would leave their job for an organization that would offer better mental-health benefits. This shows that organizations are required to go beyond just offering support and focus on how effectively these benefits are understood, accessed and used.

Read: The ‘ghost benefits’ gap: How employers can ensure their offerings are used, understood by employees

To achieve this, organizations should: regularly review mental-health benefits, usage patterns and employee feedback; work with their benefits provider to simplify access through integrated, user-friendly platforms; offer digital mental-health solutions, including virtual and chat-based support; extend coverage to spouses, partners and dependants; personalize support using inclusive language and culturally aware services; and evaluate benefits plans and providers based on service quality, accessibility, responsiveness and employee satisfaction.

Safety, trust and relevance

Mental Health Awareness Month serves as a powerful reminder of the importance of mental health in the workplace.

However, while awareness is an important first step, it isn’t the destination. Even with adequate awareness, employees will only access mental-health support when they feel a sense of psychological safety, trust and relevance.

The true measure of success lies in whether employees have access to benefits that are relevant, inclusive and easy to use, as well as whether they feel safe, supported and empowered to use them. As organizations move from awareness to action, the goal is to create an environment where mental-health support isn’t just available, but also trusted, accessible and actively used.

Oluwayemisi Peters is a human resources and recruitment consultant based in Edmonton.