Health-related challenges are having a significant impact on workplace productivity across Canada, with employees losing the equivalent of 46 working days a year due to health issues, according to a new report from Manulife Canada.
The insurer’s Wellness Report, based on responses from nearly 4,700 employees across 159 organizations with a Manulife Group Benefits plan, found that while three per cent of total working time is lost because of absences related to health issues, a much larger share — 19 per cent — is affected by health-related productivity challenges while employees are still at work.
The findings suggest that health concerns are affecting employee performance beyond traditional absenteeism, with mental fatigue, stress and burnout identified as key factors limiting productivity on the job.
Ashesh Desai
“Losing the equivalent of 46 working days per employee isn’t just a productivity issue, it tells us people are struggling in ways we don’t always see,” said Ashesh Desai, head of group benefits at Manulife Canada. “Employees are still showing up, but burnout and mental fatigue are limiting how they contribute and perform. That gives employers a clear opportunity to make a meaningful difference and better support their teams.”
The report highlights the role of mental health in employee well-being and workplace performance. Among survey respondents, 80 per cent said work contributes to their current mental state, while 57 per cent reported that mental health challenges affect their ability to perform their job.
The same proportion, 57 per cent, said they experience burnout at work at least some of the time. Meanwhile, 19 per cent identified mental fatigue as the biggest barrier to improving their mental health.
The report also found that other health concerns are affecting employees. More than half of respondents, or 53 per cent, reported poor sleep quality, while 32 per cent said lack of time was the primary barrier to improving their physical health.
Employees identified physical activity, workplace factors and nutrition as key areas of concern, underscoring what the report describes as the interconnected relationship between health and workplace productivity.
The findings point to what Manulife says is an opportunity for employers to increase engagement with workplace benefits and health supports by making them easier for employees to access and use.
Anna Tarazevich photo
According to the report, supports that may help employees address health challenges earlier include employee and family assistance programs, mental health practitioner coverage, digital health tools, community resources, physical health supports and financial wellness programs.
Participating employees receive a personal health report containing individualized results and recommendations related to physical, mental, financial and organizational wellness. Organizations that receive more than 25 employee responses are provided with an organizational health report containing aggregated and anonymized workforce findings, along with strategies aimed at improving employee wellness.
“Benefits are a strong foundation,” adds Desai. “But the real impact comes when employees know what’s available to them and feel confident using those supports. When access is simple and timely, people are much more likely to get help early, setting them up to stay healthy, engaged, and at their best.”
The company said the latest edition of The Wellness Report is available through its website.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024, 2025 and 2026.
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