The workplace impact of women’s mental health

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Desjardins Insurance explains how women’s mental health challenges can affect productivity, disability trends, and retention, prompting employers to reassess how they can support their workforce and plan for the long term

MENTAL HEALTH and neurological conditions among women are becoming a measurable workforce issue for Canadian employers.1 Although overall rates of mental health conditions are similar between men and women, the workplace environment often shapes women’s experiences differently. Persistent gender expectations, caregiving responsibilities, health factors, and socioeconomic realities can increase strain and affect when women seek support. At the same time, women are more likely than men to experience mood and anxiety disorders,1,2 according to Statistics Canada. Poor mental health remains one of the leading causes of disability in Canada,3 contributing to longer absences and reduced productivity across the workforce.3 For plan sponsors, these trends translate into sustained pressure on productivity, disability duration, and retention of experienced employees. For employers, the impact is often felt before it’s measured. Neda Nasseri, pharmacist and product director of drug benefits at Desjardins Insurance, and Nathalie Khalaf, associate partner at McKinsey & Company, both see a consistent pattern: the workplace impacts of women’s mental and neurological health rarely begin with disability itself. “What is still underestimated is the day-to-day impact on women’s ability to contribute,” Khalaf says. “You may show up, but something is keeping you from performing at your usual capacity.”

Desjardins Insurance offers a wide range of flexible life insurance, health insurance, and retirement savings products and services. It is one of the top life insurance companies in Canada and a member of Desjardins Group, the leading cooperative financial group in Canada. Desjardins Insurance has been providing innovative services to individuals, groups, and businesses for over a century. These services reflect Desjardins Insurance's commitment to employee well-being, as demonstrated by the initiatives and partnerships it has participated in over the years.

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“When we think about treatments today, they haven’t necessarily been developed with the different stages that women go through”

Nathalie Khalaf, McKinsey & Co.

Performance changes before an absence Most disability programs only address issues when an employee has reached a certain point, like worsening symptoms and low performance, and taking leave becomes the only option. This approach makes sense, but it also leads to overlooked areas. Often, absenteeism isn’t the first impact on employers. The initial impacts are slower output, less attention, slower execution, and lower participation. According to Nasseri, this pattern is sustained presenteeism, where many women continue working through “cognitive fatigue, sleep disruptions, and emotional load,” which makes it “much harder for organizations to see or measure” their strain.

Khalaf sees the same pattern in the disability experience. “Women tend to stay longer without necessarily expressing what they’re experiencing,” she says. “So when they do go on leave, it’s often because they’ve reached a point where they can’t sustain it anymore.” By the time their performance issues become noticeable enough to prompt an intervention, they may already be dealing with major overload. Claims linked to mental health can last for months, especially if they didn’t seek support earlier. When organizations do notice something, they often don’t see the full picture. Missed deadlines, lower confidence, an employee who used to be engaged goes quiet in meetings, or an increase in errors may be interpreted as a performance issue rather than an early sign of a health issue. As a result, organizations intervene by managing performance instead of providing support, even when the underlying problem is capacity, not skill. In practice, this approach can drive up costs. It increases the chances that an employee will go on leave, creates more team disruptions, and can turn a manageable issue into a retention problem. The 2025 McKinsey Health Institute report, titled Closing the Women’s Health Gap in Canada, suggests that the cumulative effect on workforce capacity is significant. Closing the women’s health gap in Canada could result in roughly seven more healthy days per year for each woman.4 This gain translates into measurable improvements in workforce participation and productivity. Across a working population, that means a significant increase in sustained capacity rather than just reduced absence.

Where support systems break down Despite the greater need, people still don’t have equal access to care. Nearly one in three Canadians reporting mental health needs say they experience barriers to accessing timely care, including cost, availability, and scheduling challenges.5 Employer-sponsored benefits remain a critical access point, with workplace coverage cited as one of the primary ways that Canadian women are getting mental health support.6 However, availability doesn’t always translate into usability. Khalaf says, “When we think about treatments today, they haven’t necessarily been developed [in line] with the different stages that women go through.” She also notes that pregnancy, postpartum recovery, and midlife transitions can all influence mental health and neurological symptoms. Access presents another barrier. Coordinating care around work schedules and caregiving responsibilities can be difficult, even when there’s coverage available. Nasseri says, “When support actually fits into women’s real-life situations, they’re going to use it more.” “If they can access it virtually or in a way that doesn’t require disclosure at work, that makes a big difference.” This means that program design plays a key role in whether employees will use the supports available to them. Khalaf adds that employers can improve uptake by making sure that programs are broad and easy to access. “The key is to build programs that are flexible enough to capture your employees’ main needs,” she says. “Then, employees can use them without feeling like they’re being managed or singled out.”

Moving toward more inclusive and practical support Employers don’t need to start from scratch to address these pressures. Most already offer mental health benefits, disability coverage, and some form of virtual care. The more immediate opportunity is to make sure that those coverages are comprehensive enough and aligned with how women’s health needs change during their professional lives. This approach begins with benefits design. Coverage that includes support for hormonal health, menopause, fertility, and broader mental health needs can help address issues that often go unspoken but that directly affect cognitive function and presenteeism. Nasseri points out that many symptoms affecting performance are interconnected rather than isolated. When benefits acknowledge those overlaps, employees are more likely to seek help earlier rather than waiting until symptoms escalate.

“When support actually fits into women’s real-life situations, they’re going to use it more. If they can access it virtually or in a way that doesn’t require disclosure at work, that makes a big difference”

The workforce implications of this problem go beyond disability costs. Women experiencing mental and neurological health challenges are often in mid-career or senior roles, holding institutional knowledge and leadership responsibilities that are difficult to replace. Khalaf says that there’s a direct connection between support and retention. “If you’re at work and facing a health issue and you don’t feel any kind of support − whether that’s from benefits or from your manager − chances are you’re going to start looking elsewhere. Talent retention and attraction are closely linked to how well organizations support employees through these challenges.” For many organizations, the risk isn’t only that employees step away temporarily − it’s that they might leave altogether. Nasseri points to research from the Menopause Foundation of Canada, which demonstrates that approximately one in 10 women may leave the workforce because of menopause symptoms,7 while others reduce hours or step back from leadership roles during midlife transitions. The result is a gradual loss of experience that often becomes apparent only when succession plans start to become strained. For plan sponsors, that’s not only a well-being issue. It’s a pipeline issue that involves replacement costs, gaps in leadership continuity, and the loss of experienced employees who hold teams together. Nasseri also highlights a disconnect in utilization patterns. Internal claims observations and broader research8 suggest that women in perimenopause may be using more mental health medication while accessing fewer mental health resources. This pattern raises questions about whether the support available reflects women’s real-life constraints when it comes to time, caregiving, and access. From an employer perspective, it demonstrates that coverage alone isn’t enough if employees cannot realistically use what’s offered. The McKinsey Health Institute estimates that closing gaps in women’s health could contribute $37 billion to Canada’s annual GDP by 2040,4 largely through stronger workforce participation and higher productivity.

Ultimately, it’s workplace culture that determines if any of these measures will be successful. Employees are more likely to seek help when mental health and life-stage transitions can be discussed without stigma. Khalaf notes that even informal initiatives − like peer groups or forums where employees can share experiences − can make a difference by normalizing conversations that would otherwise remain private. The objective is not to create specialized programs for every condition but to build a system that recognizes health as a continuous part of working life. The advantage lies with employers that recognize this as a workforce strategy issue rather than a standalone health concern. Aligning benefits, flexibility, and workplace culture can shorten the path to support, sustain performance through key life stages, and strengthen retention among experienced professionals. Over time, that alignment contributes directly to productivity, continuity, and organizational resilience.

A retention and workforce issue

Published March 16, 2026

MENTAL HEALTH FACTS

Women are more likely than men to experience mood and anxiety disorders.*

*Yeretzian, S. T., Sahakyan, Y., Kozloff, N., & Abrahamyan, L. (2023). Evaluating sex differences in the prevalence and associated factors of mood disorders in Canada. Journal of Affective Disorders, 333, 72–78. **Government of Canada, “Explore – Mental health in Canada dashboard: Mood and anxiety disorders indicator (MGAD),” Health Infobase, last modified June 20, 2024. ***Government of Canada, “Mental illness during the pandemic: Survey on COVID-19 and Mental Health (SCMH) cycles 1, 2 & 3,” Health Infobase, last updated June 26, 2025. ****McKinsey & Company and LeanIn.Org, Women in the Workplace 2025 (New York: McKinsey & Company, 2025).

Neda Nasseri, Desjardins insurance

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Approximately 18.1 percent of females, as compared with11 percent of males, have reported a diagnosed mood or anxiety disorder in Canada.**

Symptoms of anxiety and depression also remain consistently higher among women than men.***

McKinsey reports that among women in senior-level positions who have been with their company for five years or less, 70 percent have experienced frequent burnout, and 81 percent are concerned about job security.****

For more information on inclusive workplace medical plans, visit desjardins.com/group-insurance. Desjardins Insurance refers to Desjardins Financial Security Life Assurance Company. Desjardins®, Desjardins Insurance® and related trademarks are trademarks of the Fédération des caisses Desjardins du Québec used under licence by Desjardins Financial Security Life Assurance Company. 200 Des Commandeurs Street, Lévis QC G6V 6R2 / 1-866-647-5013 desjardins.com/group-insurance

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Statistics Canada, Mental health-related disability rises among employed Canadians during pandemic, 2021. Statistics Canada, Mental disorders in Canada, 2022. Statistics Canada, Inequalities in mental health, well-being and wellness in Canada, 2024. McKinsey Health Institute, Closing the women’s health gap, 2025.This article is a collaborative effort by Laurie Lanoue, Liza Vityuk, Lucy Pérez, Marie-Renée B-Lajoie, and Sandrine Devillard, representing views from the McKinsey Health Institute and McKinsey Canada. More symptoms, less support: the growing mental health gap in Canada, Leger, May 2025. Canadian Psychological Association, Employees, employers & the evidence… The case for expanding coverage for psychological services in Canada, May 2023. Menopause Foundation of Canada, Menopause and work in Canada, October 2023. CVS Health, Closing the gap: mental health during menopause and midlife, 2025.

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Benefits Change Management Corporate Wellness Diversity & inclusion Employee engagement

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Recruitment Reward & recognition Transformation Workplace health & safety

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