Dr. Nadia Aleem, MD, is a psychiatrist and member of Cleveland Clinic Canada’s Medical Director Program. She works in the field of occupational psychiatry, specializing in disability management and providing consultation and education on workplace mental health policies
Paige Bauer, PhD, is the director, global corporate advisory at Cleveland Clinic Canada. She holds a PhD in physiology from the University of Toronto
Over the past few years, companies across Canada have been seeing rising numbers of Gen Z workers reporting stress in the workplace and taking mental health leaves. Some older workers have dismissed this as an indication that younger workers aren’t willing to put in the effort or ‘can’t cut it.’ But they miss the real and distinct challenges faced by Gen Z compared to previous generations.
High living costs, inflation and debt are driving stress outside the workplace, with many Gen Z workers uncertain that they can attain what were historically reasonable life goals such as owning or even renting a home, having children or saving money or earning pensions for a comfortable retirement.
Furthermore, while remote and hybrid work have eased personal stress post-pandemic, it has added barriers to obtaining career skills by limiting on-the-job apprenticeships, relationship-building or observational learning. And, as with other age cohorts, geopolitical, social and environmental crises have added to the difficulties.
Our work with Canadian companies reveals that the gaps between expectations and reality, perceived lack of control over one’s path and tensions owing to mistakes or misunderstandings among managers and colleagues are among the many reasons Gen Z employees may find themselves struggling in the workplace and requesting mental health leaves.
Today, more than 500,000 Canadians miss work because of mental illness each week, with an economic cost of $51-billion annually. Canada’s Gen Z employees are experiencing the fastest growth in mental health issues compared with other age groups. This may herald significant financial implications for organizations over time. Companies are searching for solutions that support Gen Z employees and keep them on the job – all while recognizing the fiscal reality of corporate Canada today.
Understanding Gen Z
Gen Z is distinct among generations. Gen Z Canadians, now approximately 14-29 years old, generally value empathy, compassion and individuality and are considered entrepreneurial and self-directed. They prioritize their mental health and are comfortable discussing it. And they are focused on different markers of success and happiness, including self-care, good mental health and strong and expanding social – rather than business – networks.
While awareness of Gen Z’s mental health and other challenges is growing, there has not been a large-scale shift in how workplaces support Gen Z employees. Many organizations are beginning to recognize the scope of the issue. Some organizations we work with are seeing signals in their pulse survey data, benefits utilization and disability claims that younger employees may be experiencing higher levels of stress, burnout and mental health challenges.
Managers as change agents
Working with and supporting Gen Z employees will take new strategies, processes and accommodations, and they begin with the leaders managing Gen Z.
Many managers have not been trained to recognize early signs of burnout, anxiety or disengagement in younger employees. Providing training and practical tools can help managers support conversations around workload, well-being and career development, identify challenges early and offer accommodations to prevent mental health leaves among Gen Z. Training includes how to deliver feedback, guide difficult discussions and ensure periodic check-ins are intentional and effective.
Training can also help managers lead conversations with their direct reports about mental health and how to support it, how to navigate available benefits, how to understand and encourage psychological safety and how to work with Gen Z to prioritize work-life balance. Significantly, managers may need coaching on having more inclusive and collaborative conversations rather than authoritative ones, which don’t tend to work well with Gen Z.
Seven steps to bridge the Gen Z gap
In addition to management training, options to support and integrate Gen Z in the workplace include:
- Maintain flexibility: Gen Z appreciates work-life balance, autonomy and the ability to manage personal responsibilities alongside work. In response, consider retaining hybrid work models or flexible scheduling where possible.
- Expand mental health supports and access: Provide high coverage limits, virtual therapy and digital care options. Gen Z often prefers virtual or app-based care.
- Improve awareness of benefits: Young employees may be unaware of available supports or unfamiliar with terms such as EAP (employee assistance program). Improve how benefits are communicated and accessed, including simplified navigation and language.
- Create structured opportunities for dialogue: Town halls, small group discussions and expert-led sessions can create safe spaces for employees to ask questions about mental health, benefits and well-being.
- Embed wellness and connection into onboarding: Gen Z report higher levels of social isolation. Provide opportunities for Gen Z to build networks through events and mentorship. Offer practical tools to help employees navigate change and build resilience.
- Create skills pathways: Some Gen Z employees have been remote since Day One on the job. Invite them into meetings and workshops to help develop new skills, gain experience and build connection.
- Prioritize inclusion: Develop formal inclusion committees, policies and practices, and offer mentorship and sponsorship opportunities.
The steps outlined above have had positive impacts for our client companies in engaging Gen Z and other age cohorts. Impacts include increased utilization of mental health resources and benefits and reduced claims for mental health medications and disability. In addition, employees are mentioning improvements in well-being indicators through pulse surveys and the like.
As a creative, ‘digital native’ generation, Gen Z has a lot to contribute to Canada and Canadian companies. A comprehensive approach to attract and support Gen Z in the workplace and training to ensure management engages Gen Z based on their distinct values and needs can help employees remain satisfied, productive and on the job. For decades to come.
This column is part of Globe Careers’ Leadership Lab series, where executives and experts share their views and advice about the world of work. Find all Leadership Lab stories at tgam.ca/leadershiplab and guidelines for how to contribute to the column here.