Health-related productivity losses while employees remain at work are having a larger impact on Canadian organizations than employee absences, according to a new report from Manulife Canada that estimates the equivalent of 46 working days are lost per employee each year.
The findings, published in Manulife Canada's Wellness Report, are based on responses from nearly 4,700 employees across 159 organizations with a Manulife Group Benefits plan. The report found that health-related absences account for 3% of total working time, while health-related productivity challenges affect 19%.
The results suggest that most lost productivity occurs while employees remain on the job rather than away from work. Mental fatigue, stress, and burnout were identified as factors affecting focus, energy, and employees' ability to perform at full capacity.
“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.”
Mental health was one of the most frequently cited factors affecting employee well-being and performance.
Among survey respondents, 80% said work contributes to their current mental state, while 57% reported that mental health challenges affect their ability to perform their jobs. Another 57% said they experience burnout at work at least some of the time.
Mental fatigue was identified by 19% of employees as the biggest barrier to improving their mental health.
The findings align with research published by food services and facilities management provider Sodexo Canada, which found that 48% of employees globally are grappling with burnout, while only 21% report feeling engaged. According to Sodexo's Healthy Places + Happy People whitepaper, those conditions carried an estimated global productivity cost of US$438 billion in 2024.
The Manulife report also identified other health concerns that employees said affect their well-being.
More than half of respondents, or 53%, reported poor sleep quality. Meanwhile, 32% cited lack of time as the primary barrier to improving their physical health.
Employees identified physical activity, workplace factors, and nutrition among their leading areas of concern.
Other workplace research points to additional factors influencing employee health and productivity. A 2025 Sodexo Canada survey conducted by Leger found that 48% of Canadian employees viewed job security and stability as having the greatest positive impact on their health and productivity. Flexible work arrangements were cited by 37% of respondents, followed by supportive work culture (26%), social interaction with colleagues (24%), and opportunities for growth and learning (22%).
The same survey found that 58% of employed Canadians rated their physical and mental health as good or excellent, while roughly one-third described their overall well-being as fair and 10% reported it as poor or very poor.
The Wellness Report points to opportunities for employers to support employee health through benefit offerings and by improving awareness and access to available resources.
Among the supports cited in the report are Employee and Family Assistance Programs (EFAP), mental health practitioner coverage, digital health tools, community resources, physical health support, 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 with more than 25 employee responses receive an Organizational Health Report containing aggregated and anonymized workforce findings and strategies intended to help improve employee wellness.
“Benefits are a strong foundation,” Desai said. “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.”
