Ontario Municipal Human Resources Association

Supporting employee mental health is not a new priority – but it is an increasingly complex one. Municipalities continue to advance work in psychological health and safety, reduce stigma, and integrate mental well-being into broader people strategies. At the same time, pressures on plan sustainability, workforce productivity, and HR leaders continue to grow.

From a benefits perspective, the trend is clear. According to the Centre for Addiction and Mental Health (CAMH), mental health conditions remain a leading driver of disability claims, representing roughly 30% of claims while accounting for approximately 70% of total disability costs. These claims are often longer in duration and more complex than physical conditions, creating ripple effects across teams, service delivery, and organizational capacity.

Beyond disability, utilization patterns are also shifting. Paramedical services, particularly psychological and counselling supports, have grown significantly and now rank among the most frequently used extended health benefits after prescription drugs. This signals that employees are seeking support and will use services when they are accessible.

The challenge for employers is not only how to respond – but where to focus. In many cases, the opportunity lies not in adding new programs, but in making better use of what already exists.

The Untapped Value Within Existing Programs

Many municipal benefit plans already include mental health supports that extend beyond traditional coverage. Disability providers, extended health carriers, and Employee and Family Assistance Program (EFAP) vendors have evolved significantly, with greater emphasis on early intervention and whole-person care. Carriers are also introducing more targeted support that reflect evolving workforce needs supporting mental health holistically and proactively.

These supports vary by provider but often include:

• Virtual care options that improve access to counselling, specialized services, and earlier access to treatment
• Health risk assessments
• Manager resources and training
• Organizational toolkits
• 24/7 virtual access to specialists, including support for midlife and menopause-related health and wellness
• Bereavement and grief support services available to individuals and families following significant life events or claims
• Temporary EFAP access for individuals and their families following accidental injury or traumatic events
• Pharmacogenomic testing to help guide mental health medication selection and reduce trial-and-error prescribing

Innovation is also emerging in how treatment is delivered, with providers increasingly focusing on personalized care approaches and earlier intervention to support better outcomes.

Why Utilization Matters

Maximizing these supports is not only about employee well-being – it also impacts organizational outcomes.

Evidence shows that even modest improvements in mental health outcomes can reduce disability costs. Deloitte Insights reports that organizations investing in workplace mental health programs have demonstrated returns of $1.62 for every dollar spent, increasing to $2.18 over time, driven by reduced absenteeism, improved productivity, and stronger engagement.

However, these outcomes depend on one critical factor: employees need to know what is available and feel confident accessing it.

Barriers such as stigma, concerns about confidentiality, and difficulty navigating services continue to delay care. In some cases, employees only seek support once issues escalate to disability leave – when earlier intervention could have made a difference.

This is where employers can play a key role – not by expanding offerings, but by improving visibility, access, and integration across existing programs.

A Practical Starting Point

For organizations looking to strengthen their approach, the starting point does not need to be complicated. It can begin with a focused review:

• Inventory mental health support across benefits, disability, and EFAP providers
• Assess awareness and utilization – what is being used?
• Identify communication gaps or barriers to access
• Re-engage providers to better understand available tools and enhancements

Many carriers are focused on improving outcomes and may offer support in areas such as training and data insights.

A Final Thought

Municipal employers are no strangers to complexity. Balancing workforce needs, financial pressures, and evolving expectations is part of the role. Mental health sits at the intersection of all three.

Meaningful progress does not always require new investments or large-scale program changes. Often, it starts with a clearer view of what is already in place and a more intentional effort to bring those resources to life.

By closing the gap between availability and awareness, municipalities can better support their workforce while also strengthening the long-term sustainability of their benefit plans.