Best Employers in Canada – Powered by Mercer
The workplace landscape in Canada continued to evolve in 2025, driven by shifts in how people relate to work, the workplace environment, and the very nature of their roles. This era of change presents both challenges and opportunities for employers striving in some cases to realign their employee value propositions with the shifting expectations of their workforce. Through all this change, the Best Employers have found a way to foster a sense of fulfillment and engagement among employees, and the payoff of an engaged workforce is clear: enhanced morale, improved retention rates, increased productivity, and a stronger competitive edge in the marketplace.
Economic pressures also remain a significant catalyst for change. Ongoing concerns such as rising inflation, higher interest rates, and escalating costs are still straining both employers and employees. Historically, periods of economic uncertainty have resulted in upwards shifts in overall engagement – the recession of 2008-2009 and more recently during the COVD19 pandemic in 2020 both reflected that trend. And it is important to note that during those times, those increases in engagement do not necessarily translate into increased productivity.
Mercer’s upcoming “Inside Employee’s Minds 2025” research, expected to be shared externally in early 2026, highlights that in Canada, 40% of workers reported having to cut back on discretionary spending, and 30% reported having to reduce or even to dip into savings due to continued high inflation. Additionally, workers reported having to do more with fewer resources – 21% of employees reported facing increased workloads as organizations reduce hiring or implement layoffs. These realities underscore the critical importance of job security and financial well-being, which, alongside workload and work-life balance, remain top priorities for today’s workforce. In a landscape marked by economic volatility, geopolitical instability and the complexities introduced by tariffs, organizations must prioritize the employee experience as a critical component of their success.
Technological advancements are equally reshaping the work experience. Artificial Intelligence (AI) is becoming a central tool in how tasks are performed, with nearly one in four employees learning to use AI technologies, and employers increasingly providing access to these resources and an expectation for their adoption. While 53% of employees acknowledge that new technologies boost their efficiency, 36% find them frustrating or difficult, and 47% harbour concerns about job security amid rapid technological change. Successfully navigating this complex landscape requires employers to thoughtfully integrate technology while offering robust support to help employees adapt.
Amidst these ongoing changes, many employees report mixed feelings about their work experience. Data from Canada in 2025 reveals that although more than 60% feel appropriately compensated and more than 70% take pride in their organizations, engagement levels are divided with around one in three employees disengaged. Critical elements such as a sense of belonging and motivation at work are notably declining compared to previous years, highlighting the urgent need for employers to cultivate environments where employees feel valued, connected, and empowered.
One constant remains: the most successful organizations are those that build engaged, energized, and productive workforces. Achieving this begins with a deep understanding of employee needs and delivering on those expectations in alignment with strategic business goals. This commitment to fostering an engaged and empowered workforce is precisely what the Best Employers in Canada – Powered by Mercer certification program seeks to identify and celebrate. This certification program recognizes organizations that demonstrate exceptional employee engagement, distinguishing themselves from their peers. This recognition is based on the most reliable measure available: the direct feedback and opinions of their employees.