Employee burnout is contributing to a productivity crisis among Canadian businesses, according to new research released by the Healthcare of Ontario Pension Plan (HOOPP) and the Angus Reid Group.
Nearly three-quarters (72 per cent) of employers surveyed agree that Canada is experiencing a productivity crisis, with 90 per cent stating that business productivity depends on employee productivity. Inflation remains the top issue negatively impacting businesses, but employee burnout is a close second, the survey of more than 750 employers found.
Among businesses reporting worse-than-usual employee productivity over the past year, 85 per cent cited burnout as a major problem. Even among those reporting more productive employees, 64 per cent said burnout was having a negative impact.
“Canadian businesses have seen the effects of inflation, high interest rates, and escalating financial pressures impact both employee well-being and productivity,” said Demetre Eliopoulos, senior vice-president of research at the Angus Reid Group. “This new data shows that employers who invest in their employees’ financial futures—especially through retirement benefits—are better equipped to mitigate productivity losses tied to burnout and mental health struggles.”
Despite these concerns, fewer businesses invested in their employees this year compared to 2023. Twenty-two per cent said they didn’t invest in their workers in any way in the past year, such as increasing compensation, improving healthcare plans or providing new retirement benefits.
The research suggests that employers who did invest in their workforce reported better employee productivity. Forty-two per cent of businesses that introduced or improved retirement benefits reported better-than-normal employee productivity.
“There’s a persistent divide in how employers think their employees feel about retirement benefits and how Canadian workers actually feel,” said Ivana Zanardo, HOOPP’s head of plan services. “Business leaders need to listen to their employees when they express how important retirement benefits are to them. Providing a secure pension or retirement plan is not just a benefit, but a crucial step businesses need to take to support the long-term productivity and financial well-being of their workforces.”
The survey also indicates employers who report worse employee productivity are more likely to be concerned about the mental health and financial stress of their employees. A majority of employers (86 per cent) believe it is important for businesses to offer benefits that will reduce the financial stress of employees. Furthermore, 83 per cent agree retirement benefits are a cost-effective way to reduce employees’ financial stress.
Despite these findings, just 62 per cent of employers plan to invest in their employees in the next year—down from 82 per cent in 2023. Only 11 per cent plan to improve or introduce retirement benefits.
The survey was conducted online from August 12 to 22, 2024, with 759 Canadian business owners and senior leaders with 20 or more employees who have influence over HR decisions. The margin of error for a comparable probability-based random sample of the same size is plus or minus 3.5 percentage points, 19 times out of 20.
