Canada’s productivity is slipping, and it’s not a short-term dip. It’s a persistent decline that has been holding back our momentum for nearly a decade. 

From 2015 to 2023, output per hour worked dropped by nearly 8%, a decline linked to less innovation, slower production of goods, and underemployment. This trend isn’t just troubling for economists. It’s a wake-up call for every business and people leader in the country. The answer to Canada’s prosperity challenge isn’t only policy or investment—it’s how we lead. 

When we talk about prosperity, we often default to conversations surrounding Gross Domestic Product (GDP), economic growth, and market performance. But prosperity isn’t solely economic. It’s human. 

Prosperity is also about whether people are thriving, feeling secure, supported, connected to their communities, and fulfilled in the work they do. It’s about building not just strong businesses, but strong lives, where purpose and performance coexist. 

Canada is a highly educated, diverse, and resource-rich country. Yet, alongside our declining productivity, we’re seeing rising dissatisfaction, mental health strain, and disengagement at work. As of mid-2025, unemployment remains at a moderate 6.2%, but that number doesn’t tell the full story. People are working, but they are not thriving. 

When people feel unsupported or unfulfilled, their ability to perform and contribute meaningfully declines. That’s not merely a workplace issue. It’s a national crisis that must be addressed and that starts with human-centered leadership. 

The Hidden Engine of Prosperity: Human-Centered Leadership 

HR professionals, team leads, and executives are the individuals that directly shape the daily experience of work. They influence flexibility, recognition, psychological safety, and culture. Behind every retention rate, engagement score, and productivity metric is a team, and behind every team is a leader. 

To build lasting prosperity in Canada, we need to invest in the capabilities that create thriving, productive environments. Today, that means preparing for one of the most significant generational transitions in our workforce and building AI-ready teams equipped for the future. Success will hinge on keeping people at the center of that transformation and business strategy.  

To drive prosperity means focusing on three pillars that support the performance, retention, and sustainability of a team: 

1. Building Teams Aligned by Trust, Purpose, and Belonging 

People don’t thrive in isolation. They thrive when they feel valued and connected to something bigger than themselves. This is true in every aspect of their lives, including work. In today’s evolving world of work, trust, inclusion, and shared purpose are essential performance drivers. 

When people feel like they truly belong, they bring more of themselves to the table: their ideas, energy, drive, and commitment. The data is clear. In 2019, Harvard Business Review found that those with a strong sense of belonging drive 56% better performance and take 75% fewer sick days. 

Belonging doesn’t only shape culture; it drives outcomes. When paired with a sense of purpose, it can unlock creativity, innovation, and resilience. It empowers teams to take calculated risks, adapt through uncertainty, and lift each other higher. In a world where human potential is our greatest competitive advantage in Canada, fostering these positive sentiments isn’t just the right thing to do, it’s the smart thing to do. 

2. Creating Cultures of Growth and Excellence 

Create a culture of excellence where people are empowered to drive growth and innovation within the organization, and in return, are supported to grow themselves. When organizations fuel personal development, they unlock collective excellence. 

People are more motivated and likely to stay in places where they can grow. In environments where growth is prioritized, organizations see stronger cultures, higher productivity, and better business outcomes. That means continuous learning, constructive feedback, and visible career opportunities, especially as we enter a new era of technical advancement. Yet too often, development is reactive or reserved for the few. 

Growth isn’t just a workplace need. It’s a human one. People crave purpose, progress, and the chance to evolve. Forbes reinforces that development is one of the strongest predictors of satisfaction and retention. In a truly prosperous country, individuals feel a sense of movement in both their careers and their lives. Organizations play a major role in creating those conditions professionally. 

People leaders must embed upskilling, mentorship, and career conversations into the fabric of daily work. When people grow, they don’t just stay. They lift the performance of everyone around them. That’s how growth at work becomes growth for our communities and our country. 

3. Support Wellbeing to Unlock Potential 

Wellbeing isn’t a perk. It’s a strategic driver of productivity, creativity, and retention. 

People can’t perform if they’re depleted. Yet, burnout remains one of the most persistent threats to workforce performance. Deloitte reports that employees who feel uncared for are twice as likely to quit. When people feel genuinely supported in their wellbeing, they’re far more engaged, loyal, and motivated to contribute at their best. 

Burnout and stress aren’t just workplace problems. They’re a reflection of the pressure Canadians are carrying every day. Rising costs of living, housing insecurity, caregiving demands, and global instability are weighing heavily on people. In this environment, most Canadians spend at least a third of their lives at work and for many, work is where the pressure intensifies.  

That’s why the responsibility of leadership has never been greater. People leaders are uniquely positioned to make work feel more supportive and human-focused, not more overwhelming. That starts with prioritizing wellbeing not as a program, but as a way of leading. 

One of the most effective tools is flexibility. That doesn’t necessarily mean remote work. It means autonomy, clear expectations, and co-created ways of working that honour both performance and the reality of people’s lives outside of work.  

Ultimately, wellbeing is shaped by the cultures we build, the conversations we normalize, and the choices leaders make every day. When people feel seen, supported, and safe to be human, they perform at their best. That kind of leadership doesn’t just improve workplaces. It strengthens our communities and fuels national resilience. 

The Role of HR Leaders in Canada’s Prosperity 

Businesses need to focus on elevating human potential to drive prosperity within organizations, and our nation broadly. We can’t build a stronger Canada without rethinking how we lead and support our own. 

Canada’s greatest resource has always been our people. We are home to some of the most skilled, creative, and capable talent in the world, yet potential alone doesn’t power prosperity. It must be cultivated, supported, and led. 

That’s where HR leaders come in. They are not simply enablers of culture or process; they are builders of systems that allow people to do their best work and become their best selves. They are a foundational pillar of change.  

HR leaders shape how leadership shows up, how cultures take hold, and how people experience work. They drive momentum through our people and hold the key to unlocking Canada’s next era of growth. 

They’re not just supporting teams. They’re building the infrastructure of prosperity. 

Co-authored by Jodi Kovitz, CEO, HRPA & Anthony Ariganello, CEO, CPHR Canada 

For the first time, the HRPA and CPHR Canada are bringing together seasoned HR leaders from coast to coast for HRXchange, a strategic forum to elevate leadership, expand networks, and shape the future of work in Canada.