Gen Z are suffering the most when it comes to wellbeing: Dialogue

Medical director at Dialogue explains why traditional EAPs are no longer working, advocating for a virtual-first approach

Gen Z are suffering the most when it comes to wellbeing: Dialogue

Generation Z are known to have several positive characteristics. They’re known to be self-reliant, collaborative, and pragmatic. They’re also known for being financially minded, value conservative spending, having stable jobs, and making smart investments. They’re not motivated by financial gain but by a sense of connection as well as personal and professional relationships. These are all qualities that employers look to have in their future leaders of the workforce.

Unfortunately, not everything can be sunshine and rainbows for Gen Zs. Dialogue’s recent year-end report, with insights from the World Health Organization’s (WHO) Well-Being Index (WHO-5) framework found young Canadians’ (aged 20 through 29) wellbeing scored lower than any other generation on the index, with an average Well-Being Score of 46.3 out of 100. The reasons outlined by Dialogue include lack of sleep and physical activity, resulting in financial stress. Meanwhile, the average Well-Being Score remains unchanged since the last released report, suggesting what organizations currently offer their employees simply isn’t enough.

It’s no question that financial stress is weighing more heavily on the minds of younger Canadians, with nearly 3 in 4 stating that it has had at least one negative impact on their lives. But despite such stressors worsening the mental health of workers, Dr. Marc Robin, Dialogue’s medical director, says the findings present an opportunity to employers and plan sponsors alike to rethink traditional benefits, including Employee Assistant Programs (EAPs) and providing targeted support systems.

Courtesy of Dialogue

“This is your generation who is comfortable talking about their mental health more than any other generation, but the typical 1-800 EAP model does not reach them where they are,” says Robin. “We’re increasingly seeing employers reimagining their EAP, offering a virtual first approach and trying to reach that very important group in their workforce who look to their employer for mental health support and financial counselling.”

Statistics Canada and the Canadian Social Survey also emphasize Dialogue’s findings as the share of Canadians who reported high life satisfaction declined from 54 per cent in mid-2021 to 48.6 per cent in early 2024. Younger adults (aged 25 to 34) had notable declines in their life satisfaction in 2024, with their proportions declining an average of 3.9 percentage points per year since 2021.

By 2024, fewer than 4 in 10 of these adults were highly satisfied with their lives. Feeling hopeful about the future is also declining with 65 per cent of Canadians who reported feeling happy in 2021 when compared to almost 60 per cent in 2024.

Despite EAPs already offering resources for mental health, financial counselling, and overall wellness, Dialogue’s findings also found EAPs are being underutilized; over 50 per cent of eligible employees never access them. Robin believes the traditional 1-800-number-based EAP model often feels outdated and inaccessible for young workers, which often include long wait times for appointments.

A lack of digital integration means these programs fail to meet employees where they are: on their smartphones, ready for immediate action, notes Robin, adding that virtual EAPs are valuable in helping people access quick support. By embracing a virtual-first approach to EAPs, this can result in an average of 12 per cent utilization, compared to 5 per cent for traditional models.

“Employers who invest in virtual mental health services are seeing a strong return on investment because of accessibility, and the ability to consult earlier on in members’ health journey, especially since 70 to 80 per cent of EAP utilization is for mental health,” Robin says.

From a clinical perspective, Robin acknowledges promoting earlier access can also reduce an employee’s time on short-term disability leave, helping bring an employee back to work in half the amount of time. “Timely access is also important to improve productivity by addressing presenteeism linked to mental health challenges,” he says.

Rather than waiting for employees to reach a crisis point, Robin asserts employers should empower their teams to be proactive about their well-being. "We prefer people to be proactive and use the app three times a week rather than once a year," he explains. "A lot of times, it's using ICBT [internet-based cognitive behavioural therapy] tools to kind of understand, for themselves, am I worried about something, or am I suffering from anxiety?"

Courtesy of Dialogue

Robin also emphasizes benchmarking surveys and assessments can provide valuable insights. "Eighty per cent of members who undertook the survey actually went one step further and adopted healthy habits around sleep or around physical activity," says Robin.

While Robin doesn’t explicitly say whether EAP programs are working or not, he believes younger employees are unaware of the full scope of benefits available to them, such as financial counselling.

“There’s certainly work to be done when it comes to highlighting the benefits of these programs. Canadians are expecting more for their employers, and employers are stepping up their game,” says Robin.

“Having the ability to benchmark where employees are at and accessing the tools they need to help them stay focused on work, despite some months being harder than others, is a good partnership, I think, between employers and employees,” he added.

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