December 16, 2025
Mental Health Benefits Beyond EAP: What's Actually Working in 2026
Employee Assistance Programs (EAPs) have been the default mental health benefit for decades. But here's what HR leaders are discovering: EAP utilization rates typically hover between 3-5%. That means 95% of your employees aren't using the mental health support you're paying for. It's not that employees don't need help—it's that traditional EAPs aren't meeting them where they are.
Why Traditional EAPs Fall Short
Let's be honest about EAP limitations:
Access barriers:
- 1-800 numbers feel impersonal and outdated
- Limited sessions (typically 3-5) aren't enough for real issues
- Long wait times for appointments
- Counsellors don't always match employee needs
Stigma persists:
- Employees worry about confidentiality
- "EAP" still carries a stigma of "having problems"
- Many don't know what services are actually available
One-size-fits-none:
- A 25-year-old new grad has different needs than a 45-year-old parent
- Not everyone wants traditional talk therapy
- Digital-native employees expect digital-native solutions
What's Actually Working in 2026
Forward-thinking Canadian companies are moving beyond the EAP checkbox. Here's what's making a real difference:
1. Flexible Mental Health Spending
Instead of pre-selecting mental health providers, give employees dollars to choose their own support. Through an HSA or dedicated mental health LSA, employees can access:
- Private psychologists and therapists
- Psychiatrists
- Registered counsellors
- Art therapy, EMDR specialists, or other modalities
- Digital mental health apps and platforms
Why it works: Employees choose providers they trust, for services they actually need. No gatekeeping, no session limits.
2. Digital-First Mental Health Platforms
Apps like Calm, Headspace, BetterHelp, and Canadian platforms like Inkblot are seeing real engagement. These offer:
- 24/7 access (not just business hours)
- Text-based therapy options
- Self-guided CBT programs
- Meditation and stress management tools
Coverage tip: Include digital mental health subscriptions as an eligible HSA or LSA expense. Many employees will use an app who would never call an EAP line.
3. Telemedicine Mental Health
Platforms like Dialogue offer mental health support as part of their virtual care. Key benefits:
- Same-day appointments possible
- Video sessions from home (no commute, no waiting room)
- Integration with primary care when needed
- Feels more like healthcare, less like "employee assistance"
4. Mental Health Days (Really Using Them)
Unlimited PTO means nothing if the culture doesn't support actually taking time off. Companies seeing success are:
- Explicitly naming "mental health days" as legitimate sick days
- Leadership modeling by taking mental health days themselves
- Removing the need to disclose why you're taking a day
- Creating meeting-free blocks for decompression
5. Manager Mental Health Training
Your managers are on the front lines. Investing in their skills pays dividends:
- Mental Health First Aid certification
- Training on recognizing signs of burnout
- Scripts for supportive conversations
- Clear escalation paths when someone needs help
Reality check: Many mental health crises at work are first noticed by direct managers—not by HR, and definitely not by an EAP hotline.
6. Proactive Wellbeing, Not Just Crisis Response
The best mental health benefits prevent problems, not just address them:
- Stress management workshops
- Financial wellness programs (financial stress = mental stress)
- Workload audits and burnout prevention
- Boundaries around after-hours communication
Building a Mental Health Benefits Stack
Here's a practical framework for 2026:
LayerWhat It DoesExampleBaseImmediate crisis supportEAP (keep it as backup)AccessRemove barriers to ongoing careMental health LSA or HSA coverageDigital24/7 self-service supportSubsidized app subscriptionsCultureNormalize mental health at workMental health days, manager trainingPreventionAddress root causesWorkload management, financial wellness
No single benefit covers all these layers. A comprehensive approach combines multiple elements.
What Employees Actually Want
Recent surveys of Canadian workers reveal:
Access to private therapy: 67% want employer-covered therapy sessions Flexibility in provider choice: 72% want to choose their own mental health provider Digital options: 58% would use an app for mental health support Time off: 81% want mental health explicitly included in sick day policies
The message is clear: employees want choice, access, and reduced stigma—not a phone number they'll never call.
The Business Case for Better Mental Health Benefits
This isn't just about being nice. The ROI is substantial:
Absenteeism: Mental health issues are the leading cause of disability claims in Canada Presenteeism: Employees struggling with mental health are less productive even when present Turnover: 50% of employees who leave cite burnout or mental health as a factor Recruitment: Mental health benefits are now a top-3 consideration for job seekers
For every $1 invested in mental health programs, companies see an average return of $4 in reduced absenteeism, improved productivity, and lower healthcare costs.
Quick Wins You Can Implement Now
Don't have budget for a full mental health transformation? Start here:
- Communicate your existing benefits better. Half of employees don't know what's available. Send a clear email outlining mental health resources.
- Add mental health apps to your LSA/HSA. Low cost, high impact. Headspace, Calm, and similar apps can be claimed under many flexible benefit programs.
- Update your sick day policy. Explicitly state that mental health days are a legitimate use of sick time. Put it in writing.
- Train one manager cohort. Start with a pilot group on Mental Health First Aid. Measure the impact before rolling out broadly.
- Survey your team. Ask what mental health support they'd actually use. The answers might surprise you.
Moving Beyond the Checkbox
The question isn't whether to offer mental health benefits—it's whether those benefits actually help.
An unused EAP is a checkbox. A comprehensive, flexible mental health strategy is a competitive advantage.
Your employees are already dealing with stress, anxiety, and burnout. The companies that make it easy to get real help—without stigma, without barriers, without limits—will win the war for talent.
Tedy's flexible benefits make it easy to cover mental health expenses that matter to your team. From therapy sessions to wellness apps, employees choose what works for them. [See how →]
