The Growing Mental Health Gap: What Employers Need to Know

Mental health claims are rising all across Canada. Many employers are seeing higher utilization and increasing costs associated with mental health support, as well as higher disability claims. While rising claims can create concern during renewals, it's important to look beyond the numbers. Rather than asking why the claims are increasing, perhaps we should be asking what these claims are telling us about what employees are experiencing. 

The Growing Demand for Support

As mental health challenges are becoming one of the most significant workplace health concerns, more employees are reaching out for support. Mental health is now a leading driver of disability claims and lost productivity. Employees are carrying more than ever before: financial pressures, caregiving responsibilities, burnout, workplace change and uncertainty, social isolation and loneliness, as well as broader economic and societal stressors. 

Public systems are struggling to keep up. All across Canada and the world, demand for mental health services exceeds available resources. Long wait times and limited access can create barriers to care. As public systems struggle to absorb demand, workplace benefits are increasingly becoming one of the fastest routes to support. Benefits plans are no longer simply a supplementary resource. For many employees, they are becoming an essential access point for care, meaning that workplace benefits matter more than ever. 

Rising Claims Don't Necessarily Mean Something Is Wrong

Increased utilization can be a positive sign. Historically, mental health support was underutilized due to stigma, lack of awareness, limited coverage or fear of judgement. Rising claims may actually indicate greater awareness, improved access, reduced stigma and employees seeking help earlier. All good things. 

The real risk isn’t utilization, it’s waiting too long. Many employees still delay seeking help, leaving mental health concerns to escalate. Early intervention can improve outcomes, reduce absences, support productivity and improve quality of life. Options like counselling, virtual care, preventative wellbeing resources and Employee Assistance Programs (EAPs) can help employees access support now, instead of requiring disability leave later.

Benefits Alone Can't Solve the Problem

Even excellent benefits have limitations. A comprehensive plan can make support available, but it can't make employees feel comfortable accessing it. Culture matters too. Employees may still avoid support if they fear judgement, worry about career implications, don't trust confidentiality, or feel psychologically unsafe.

Benefits are an important part of the solution, but they are not a substitute for healthy workplace practices. A counselling benefit cannot solve chronic workloads. A wellness account cannot compensate for a culture that celebrates burnout. Mental health resources are far less effective if employees feel unable to set boundaries, take vacation, or speak openly about challenges.

This is because benefits don't create behaviour; they support behaviour. The workplace norms employees experience every day often have a greater influence on wellbeing than the coverage itself. Leaders play an important role in shaping those norms through the behaviours they model, the expectations they set, and the conversations they encourage.

Support requires more than coverage. It requires trust, clear communication, psychological safety, and a workplace culture where employees believe they can access help without negative consequences.

What Employers Should Be Asking Right Now

Instead of focusing solely on claims costs, consider asking: 

• Do employees understand what support is available?

• Are benefits easy to access?

• Are employees using preventative resources?

• Do people feel safe asking for help?

• Are our benefits aligned with current workforce needs?

The goal isn't simply controlling claims and lowering costs. It's ensuring employees receive support before challenges become crises.

Mental Health Claims Tell a Human Story

Mental health support was historically seen alongside other paramedical benefits as a ‘nice to have’ but the widening gap in public coverage now makes these kinds of benefits a ‘need to have’ for many employees. Because behind every claim is a person navigating a challenge. Rising mental health claims are a reminder that employee wellbeing remains a critical workplace issue. 

While claims data may appear in renewal reports, the conversation is ultimately about people, not numbers. The organizations that will be best positioned moving forward are those that see mental health support not as a cost to manage, but as an investment in the health, resilience, and sustainability of their workforce.