Canadian employers take notice: Young workers will switch jobs for better mental health benefits

Canadian employers are desperate for top talent in their ranks, but the data is clear: they are struggling to find it and, critically, to hold on to it.
The reason for this is stark and simple — our nation is facing a historic shortage of skilled labour amid an already vast productivity gap. It’s a situation that has made business leaders extremely anxious.
And yet, oddly enough, the best way for them to alleviate their anxiety could be to alleviate everyone else’s.
I mean this quite literally. The competitive edge employers need to attract emerging talent and help close Canada’s productivity gap is not free salad bars and onsite laundry services. It’s paid therapy.
After many years working with organizations to improve workplace mental health, I know this to be true. But when we put this theory to the test in a national survey in September, the results were even more striking than expected: a third of workers in Canada said they would leave their current job for one that offers greater mental health benefits.
The numbers were even more staggering among younger generations, with nearly two-thirds of those aged 18-24 and more than half of those aged 25-34 expressing a willingness to switch jobs for better mental health support.
Members of marginalized groups also report an outsized desire to seek new employment for this reason, with 46 per cent of BIPOC and 57 per cent of 2SLGBTQ+ individuals indicating the same.
These findings reflect a seismic shift in employee expectations. Once a topic rarely discussed in the workplace, mental health is now a key factor that job seekers, especially those under 35, actively prioritize when making employment decisions.
This shift in attitudes and priorities is significant, but it is also unsurprising when we look at the data. Simply put, Canadian workers are struggling.
The same survey reveals that more than two-thirds of Canadian employees have dealt with a mental health issue in the past year, with stress and anxiety topping the list across all age groups. The situation is particularly dire for women and younger generations. Among those aged 18-24, rates of stress, anxiety, depression, and loneliness are the highest of any demographic. It doesn’t help that mental health services are often prohibitively expensive for the many Canadians who don’t have coverage.
What’s more, younger workers not only desire jobs that offer comprehensive mental health benefits; they want care that is confidential, accessible, and tailored to their needs. In fact, confidentiality was cited as the most important factor employees seek in their mental health benefits plan.
Further, a notable 71 per cent of workers aged 18-24 expressed a desire for therapists who understand their unique cultural backgrounds and sexual identities.
To some, this new generation of workers could come across as demanding. But these expectations are not about being “high maintenance.” Instead, they reflect an emerging reality in the workplace: that employees who feel mentally supported are more engaged, more productive, and more collaborative.
This is not only good for them and their employers, it’s good for the Canadian economy, which loses billions of dollars in productivity each year due to mental illness-related workplace challenges such as absenteeism, according to the Canadian Psychological Association. Organizations that dismiss the health needs of a new generation of workers risk falling behind in a rapidly changing job market where top talent has the upper hand.
Of course, many employers are trying to evolve. The non-profit sector in Canada is already setting a precedent by offering some of the most progressive mental health benefits in the country, demonstrating that it is possible — and increasingly necessary — to meet employees where they are.
But it’s time for all Canadian employers to take note and take action.
Mental health benefits are not a perk: they are both a business and a moral imperative.