Canadian organizations overwhelmingly offer employee assistance programs (EAPs) but stop short of providing dedicated mental health days, creating a gap between recognizing mental health challenges and giving employees time to address them proactively.
While 75% of organizations offer EAPs according to a new survey of 189 HR professionals conducted by HR News Canada in partnership with Venngo, only 20% provide dedicated mental health days. The disconnect reveals how many employers still treat mental health support as a reactive service rather than a preventive benefit deserving its own time off.
“The disconnect exists because some organizations are lagging in the treatment of mental health and lumping in mental health as part of general health,” said Sally Benn, senior vice-president of group customers at Venngo, whose work with organizations on employee wellness programs provides insight into how companies approach mental health benefits. “This structure relies on EAPs and sick leave rather than creating dedicated mental health policies.”
Get the full survey results
View a copy of the full survey results here: https://hrnewscanada.com/perkshift/
Different tools for different needs
The survey shows organizations are investing in mental health support through multiple channels. Beyond the 75% offering EAPs, 59% provide therapy or counselling coverage, 26% offer stress management or mindfulness workshops, and 38% provide telehealth or virtual care services.
When rating mental health’s priority in their overall benefits strategy, 35% of respondents called it high priority and 7% designated it top priority. Another 35% rated it moderate priority, while 21% considered it low or somewhat low priority.
But the tools currently available serve different purposes, according to Benn.
“Employees tend to use mental health days as proactive breaks to prevent burnout, while EAP services are accessed for counseling or crisis support, and sick leave is typically reserved for sustained illness,” she said. “Mental health days address stress and recovery, EAPs provide structured intervention, and sick leave covers incapacity to work.”
The distinction matters in practice. Mental health days send a stronger social signal and offer preventive benefits, while EAPs are more reactive once an issue exists, Benn noted. Sick leave requires the inability to perform core job functions, not recovery time, creating a barrier for employees experiencing anxiety or burnout who remain technically capable of working.
The stigma barrier
Some HR leaders worry that labeling days as mental health days will discourage use or create tracking issues. But data from organizations that have implemented these policies shows the opposite effect.
Mental health leave has surged 300% since 2020, according to Benn. Canadian data shows that organizations offering mental health days see strong uptake and positive outcomes, with employees who combine this time off with EAP services returning to work about six days sooner than those who don’t.
“Utilization is typically 20 to 30% higher when mental health days are explicitly normalized, compared to personal days used for the same purpose,” Benn said, citing a 2024 Mercer study. “Seventy percent report feeling more supported and less stigma when mental health is explicitly addressed versus having to use another PTO day.”
Paid time off and flexible schedules rank among the most effective options for mental health support. When prevention strategies are in place, burnout rates drop from 47% to 27%, according to research Benn cited.
While stigma remains a barrier — 60% of Canadians still fear being labeled — companies that normalize mental health days report improved engagement and lower absenteeism, indicating these policies work when paired with clear communication and leadership action.
The psychological difference
The practical and psychological impact of a dedicated mental health day differs significantly from directing employees to use sick leave or call an EAP.
“A mental health day is proactive and stigma-free, signaling that psychological well-being is as valid as physical health, whereas ‘just use a sick day’ feels dismissive and lacking empathy,” Benn said. “A dedicated mental health day gives permission to pause without explanation, reducing guilt and normalizing care.”
Survey data supports the need for this approach. When asked which areas need improvement in their current benefits packages, 39% of respondents identified mental health support — the second-highest area after flexibility and personalization at 59%.
The survey also revealed that 25% of respondents identified mental health and wellbeing support as the area most likely to grow in importance over the next two to three years, second only to flexible and personalized benefits at 31%.
Building the business case
For organizations considering adding mental health days, the business case extends beyond doing the right thing to measurable return on investment.
“Thirty-eight percent of Canadian workers report having taken time off in the past five years for mental health issues like stress, anxiety and burnout,” Benn said. “Fifty-two percent of Canadians said they’ve experienced challenges affecting their work due to mental health, but only 33% disclosed this to their employer.”
The cost of inaction affects retention. According to Benn, 30% of employees who participated in the survey said they would consider switching employers for better mental health support.
Mental health days reduce burnout-related absenteeism, improve engagement and lower turnover costs. To gain executive buy-in, Benn recommends tracking data like absence frequency, average return-to-work time and retention rates before and after implementation, and comparing productivity scores or output per employee.
“Executive leadership will respond to your data, so if you can show that replacing one burned-out employee costs 1.5 to 2 times salary, while preventive time off costs far less, you will gain support,” she said. “You can strengthen your case by adding engagement survey data, absence management data and EAP utilization trends to demonstrate positive financial and cultural impact.”
Data-driven wellness decisions
Beyond supporting individual employees, designating mental health days separate from personal days provides organizational insight.
“Being able to identify trends helps HR make data-driven decisions that can further support the total wellbeing of its employees,” Benn said. This data can proactively identify burnout or issues with how work is structured or changes in the work environment and culture.
The survey shows organizations recognize the connection between total wellbeing and other flexible policies. Among respondents, 48% offer flexible work hours or compressed workweeks, 29% provide expanded parental leave, and 20% offer sabbatical or extended leave options.
Current satisfaction levels
Despite the range of mental health support options available, room for improvement remains significant. When asked about satisfaction with their current benefits program’s comprehensiveness, only 6% of survey respondents reported being very satisfied, while 43% said satisfied and 33% remained neutral.
The survey also revealed variations in how organizations communicate mental health benefits. Among respondents, 62% use onboarding sessions to communicate benefits, 49% rely on company intranets, and 49% use employee newsletters or emails. However, when asked to rate communication effectiveness, only 10% said it was very effective, while 42% called it somewhat effective and 28% rated it neutral.
Looking ahead
The data suggests a shift is underway. Among the 41% of organizations planning to introduce or expand benefits offerings in the next 12 months, several specifically mentioned enhancing mental health coverage, adding virtual care services, or improving wellness spending accounts.
Organizations across sectors are grappling with mental health challenges. Survey respondents came from diverse industries including professional services (16%), manufacturing (14%), educational services (10%), and health care (6%). Company sizes ranged from fewer than 50 employees (24%) to more than 5,000 employees (7%).
“Ideally, every organization should evaluate mental health days to support wellbeing tailored to its workforce needs,” Benn said. “Together with EAPs and flexible paid time off policies, they form complementary approaches to support employee wellbeing.”
The message is clear: as organizations compete for talent in a market where 30% of employees would switch jobs for better mental health support, offering dedicated mental health days may shift from progressive policy to competitive necessity.
