Why January Is the Hardest Month for Your Team's Mental Health and What Actually Helps

Jan 15
4 min read

Organizations spend more on mental health benefits than ever - Employee

Assistance Programs, wellness initiatives, mental health days, mindfulness apps. The investment is real. But access to resources doesn't automatically translate to better outcomes, especially during the months when employees need support most.

January is when mental health challenges peak in Canadian workplaces. Understanding why and what leaders can actually do about it is the difference between genuine support and performative gestures.

Why January Hits Harder in Canada

The statistics tell a stark story. Depression rates in January are 70% higher than in August across Canada, with December, January and February showing the highest proportions of major depressive episodes. Estimates suggest that approximately 2% to 3% of Canadians experience clinically significant Seasonal Affective Disorder (SAD), while up to 15% experience milder seasonal mood changes. Based on these prevalence rates, this means hundreds of thousands of Canadians, and likely close to 1 million, are significantly affected by seasonal depression each year.

But SAD is just part of the picture. January brings a convergence of stressors: post-holiday financial strain (42% of Canadian employees cite money as their top source of stress), broken New Year's resolutions, shortened daylight hours and the emotional comedown from a socially intense holiday period. For employees already navigating workplace pressures, January can tip the scale from manageable stress into something more serious.

The Workplace Mental Health Crisis Isn't Seasonal

Even outside of January's peak, Canadian workplaces are struggling. Recent data shows 39% of Canadian employees report feeling burnt out, up from 35% in 2023. Among those experiencing burnout, 70% say their productivity has declined due to worsening mental health and 40% are living with constant stress.

The numbers are worse for certain groups. Women and racialized Canadians report burnout rates of 42%. Healthcare workers face burnout rates of 38%, while legal and HR professionals hit 59%. And only 42% of employees with a mental health diagnosis feel comfortable disclosing it at work, often due to fear of career consequences.

Here's what should alarm every leader: burnout costs employers between $5,500 and $28,500 per employee annually. For a company with 500 employees, that's a potential $3.4 million loss in productivity and salary costs each year.

Why Benefits Alone Don't Work

Most organizations have mental health benefits. According to Mental Health Research Canada, 68% of Canadian employees consider their workplace to offer adequate services and benefits for psychological health. Yet burnout keeps rising and only 11% of employees say burnout prevention is a top priority at their workplace.

The disconnect is clear: access to an EAP doesn't help if employees are afraid to use it. A meditation app can't fix a manager who creates chronic stress. Wellness stipends can't undo a culture where taking time off is quietly punished.

Mental health benefits operate on a flawed assumption, that employees will recognize when they need help and feel safe asking for it. But in most workplaces, the biggest barrier isn't access to resources. It's the fear of being seen as struggling, unreliable or uncommitted.

What Actually Makes a Difference: Leadership Capability

The data shows what works: employees who report strong support from managers and co-workers experience significantly better workplace mental health. Organizations that prioritize burnout prevention see rates 30% lower than average, translating to approximately $3,400 saved per employee per year.

But here's the problem: only 52% of Canadian managers believe they can identify when team members are struggling with psychological distress. And fewer than half of employees receive regular feedback that helps them grow or feel they're given time to participate in training.

Leadership capability isn't about sending managers to a one-hour mental health awareness session. It's about equipping them to:

Recognize early warning signs of burnout and depression. Changes in work quality, withdrawn behavior, increased absences, irritability - managers need to know what to look for, especially in January when symptoms intensify.
Have direct conversations about workload and capacity. Heavy workloads are the primary source of stress for 74% of Canadian employees. Managers need permission and training to discuss realistic capacity, redistribute work and say no to unrealistic demands.
Create psychological safety on their team. When only 42% of employees with mental health diagnoses feel comfortable disclosing at work, the issue isn't benefits - it's trust. Employees need to believe that admitting struggle won't tank their career prospects.
Model healthy boundaries. If managers are burnt out themselves (and many are, 24% of Canadian employees experience burnout "most of the time" or "always"), they can't support their teams. Leaders need to demonstrate that rest isn't weakness.

What to Do This January

If you lead people, here are concrete actions that matter more than another wellness initiative:

1. Normalize January as a hard month

Acknowledge that shortened daylight, financial stress and post-holiday fatigue are real. Give your team permission to not be at peak performance in January.

2. Check in on workload, not just mood

Don't ask "How are you?" and accept "fine" as an answer. Ask: "What's on your plate right now? What can we deprioritize? Where are you feeling stretched?"

3. Be alert for warning signs

Missed deadlines from someone usually reliable. Withdrawal from team interactions. Increased sick days. These aren't performance problems, they're distress signals.

4. Make accommodations without requiring disclosure

Flexible hours, remote work options, deadline extensions - these help whether someone has a formal diagnosis or is just struggling. Don't make people prove they're "sick enough" to deserve support.

5. Train managers properly

One-hour sessions don't cut it. Invest in ongoing training that builds real skills in recognizing distress, having difficult conversations and managing workload expectations.

The Bottom Line

January is hard. Seasonal depression is real. Workplace burnout is escalating. But throwing more benefits at the problem won't fix it if your managers don't know how to lead through it.

The organizations that actually move the needle on mental health aren't the ones with the best EAP. They're the ones where leaders understand that supporting mental health is a core management competency, not an HR initiative.

Need help building leadership capability around mental health?

The Orion Group provides comprehensive training on psychological health and safety, burnout prevention, and trauma-informed leadership. Contact us to ensure your managers have the skills to support their teams - not just in January, but year-round.