Canadian employees are reporting worsening mental, physical and financial well-being, while employers say they lack the tools and information needed to determine whether workplace benefits are addressing those challenges, according to a new survey commissioned by Dialogue Health Technologies Inc.
The 2026 State of Workplace Well-Being report, developed by Leger, found declines across several measures compared with last year, including mental health, physical health, sleep quality and financial health.
The survey of 1,002 employees and 200 human resources decision-makers across Canada found that 35 per cent of employees said their mental health had worsened, up from 30 per cent in 2025. Thirty per cent reported a decline in their physical health, compared with 21 per cent last year.
Sleep quality deteriorated
Sleep quality also deteriorated, with 38 per cent saying it had worsened, compared with 26 per cent in 2025. Financial health declined for 35 per cent of respondents, up from 29 per cent last year.
The changes are also being reflected in the workplace. Only 21 per cent of employees said they feel energized and motivated most days, while half reported experiencing some level of burnout.
The survey found that 74 per cent of employees had worked at reduced capacity because of health or stress challenges during the past year.
"Employees are facing pressures on multiple fronts, and it's showing up in how they function at work. Nearly three-quarters told us they've worked at reduced capacity this year. The problem is that by the time a health issue becomes a missed workday or a disability claim, it's often been building for months," said Dr. Robin, Medical Director at Dialogue. "The real opportunity is to provide support earlier, when issues are easier to address, and outcomes can be improved. That requires care that is easy to access, clinically grounded, and continuous rather than one-time interactions that leave people to manage the next steps on their own."
The report also examined how employees use workplace health benefits and how employers assess the programs they provide.
Measuring results for benefits programs
Among employees with workplace health benefits, 67 per cent said they had used them during the past year, but only 20 per cent were very satisfied with those benefits. The report identified long wait times, cost and difficulties navigating services as factors that can lead employees to delay or avoid care.
The report also found a gap between the issues HR leaders consider priorities and the types of programs employers commonly offer. Engagement and retention ranked among the top priorities for HR leaders, while programs addressing financial stress, weight management and caregiving were among the least commonly offered.
Another challenge identified in the report was the ability of employers to measure the results of their benefits programs. Only 31 per cent of HR leaders said they receive regular, actionable insights from their providers, according to the survey.
"The year-over-year decline we're seeing across several dimensions of employee well-being is significant, and honestly, also quite concerning. And seeing just how interconnected all of these pressures are, while not a huge surprise, is eye-opening in how very interwoven these things are. Employees, people, really, can face pressures on all fronts, mental, physical and financial, that carry over into the workplace, where other pressures usually exist as well, making for quite the interplay of forces shaping how people feel, function and show up at work. For employers, understanding where employees are struggling, and not just at work, is such an important and human first step toward responding effectively and truly helping," said Luc Dumont, Senior Vice-President at Léger.
Taline Karagopian, a human resources adviser at Léger, said employers face challenges in determining which combination of benefits and resources best meets employee needs.
"From an HR perspective, what really stands out is how complex it can be to translate employee needs into the right mix of support. Many employers are already investing in a wide range of benefits and resources, but more doesn't necessarily mean better, and needs can vary considerably from one employee to another and evolve over time. The more we understand what employees are experiencing, how they engage with available supports and what they find most helpful, the better positioned organizations are to make informed decisions that are both practical for the business and meaningful for their people," added Karagopian.
Challenges around access
The report argues that the challenges around access, the fit of benefits programs and measurement are connected, and calls for employers to move toward integrated care rather than relying on individual programs.
It recommends a model that provides a single entry point to services, rapid triage and support covering areas including physical and mental health, prevention, nutrition and financial well-being. The report also calls for reporting that links health outcomes with business results.
Dialogue, which commissioned the report, is a virtual health-care and wellness provider serving employers and organizations. The company said its platform provides access to health services through smartphones, computers and tablets.
Sun Life acquired Dialogue in October 2023, and Dialogue now operates as a standalone entity within Sun Life Canada, according to the release.