March 7, 2025 from Benefits Canada
While the conversation around mental-health benefits often focuses on coverage levels, experts say it’s time for employers to think beyond the benefit caps and address the full picture — one that includes psychological safety, workplace culture, and diversity, equity and inclusion (DEI).
Paula Allen, global leader and vice-president of research and client insights at Telus Health, explains that mental health, DEI, and psychological safety are tightly linked.
“When you’re talking about psychological safety, it’s often about removing something: an unsafe environment, unsafe experiences, etc. Those unsafe experiences can tie up a person’s brain at work and affect their productivity.”
Designing Mental Health Support with the Whole Employee in Mind
At CAA Club Group, mental health was brought to the forefront during a benefits redesign. The organization decided to provide $2,000 in stand-alone mental-health coverage, recognizing its growing impact on disability claims.
Mara Notarfonzo, vice-president of total rewards, emphasized that mental health is the leading cause of disability claims across most organizations. She noted the importance of creating opportunities for employees to access the support they need early on—before their challenges escalate into formal disability cases.
At the Workplace Safety and Insurance Board (WSIB), the strategy includes unlimited mental-health benefits and designing office spaces with wellness in mind — like offering reflection rooms.
“If someone needs assistance for an extended period of time, we don’t want them to just stop treatment halfway,”
said Rolando Lopez, vice-president of talent acquisition and HR business services.
“Coverage shouldn’t be a barrier to care.”
The Power of Psychological Safety in the Workplace
Mental health isn’t just about access to counselling. Psychological safety — the belief that one can speak up or be authentic without fear of repercussion — is a key part of employee well-being.
Data from the 2024 Benefits Canada Healthcare Survey shows:
- 44% of employers are aware of the National Standard for Psychological Health and Safety in the Workplace.
- Only 16% of all plan sponsors have implemented it.
- 20% of employees say they don’t feel comfortable being their authentic selves at work.
Notarfonzo noted that CAA emphasizes manager training to lead mentally healthy teams, while Allen stressed that leadership support is critical.
“It doesn’t matter what a policy says if it isn’t backed by leadership support.”
Building Equity Into Mental Health Programs
Wendy Poirier, wellbeing solution leader at WTW, says mental health and DEI are increasingly intertwined. Poirier commented that when it comes to mental health, peer support is often best responded to.
At WSIB, DEI strategies are intentionally connected to wellness and mental health, which brings different employee resource groups (ERGs) into the planning process.
Lopez emphasized this, stating
“When you actually embed mental health into a DEI strategy, ERGs can weigh in and make it relevant. Those things will organically be drawn out if employers take a more meaningful approach.”
Supporting Employees Across Life Stages
Rather than tailoring wellness programs by generation, Lopez recommends thinking in terms of life stages — for example, supporting new parents or those caring for aging family members, regardless of age group.
CAA has created a flexible approach by offering enhanced coverage and wellness accounts that employees can use for services or tools that suit their specific needs. Notarfonzo commented on the importance of feeling support and connection, citing it as one of the biggest components of mental health. The importance of this support lies in how leaders connect with their employees.
By integrating mental-health strategies with DEI and psychological safety, employers can create a more inclusive, resilient, and productive workplace. As Allen puts it:
“To create a sustainable strategy, you need that cultural integration.”
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