Mental health at work: The risks and opportunities employers can’t afford to ignore

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Over the past couple of years, we’ve seen mental health in the workplace come to the fore. While it’s far from a new issue, the pandemic and the unique impact it has had on how we work has not only created new stress factors; it’s also opened up the conversation and driven improvements.

When you consider the business risks of an employee who is struggling with their mental health, Rob Kosova, QBE Insurance General Manager, Commercial says there’s a clear connection between creating a workplace that supports mental health and business success.

“The World Health Organisation [WHO] says it best – a healthy workplace is one that not just has an absence of negative health impacts, but an abundance of health-promoting ones,” Kosova tells Kochie’s Business Builders.

“So I think the organisation’s got to see the risk of it, but also the opportunity. The opportunity is if individuals are healthier and they are at their best… then the organisation has more of its staff available, present and productive.”

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Why is mental health a workplace issue?

The recent National Study of Mental Health and Wellbeing found that almost 44 per cent of Australians aged 16 to 85 had experienced a mental disorder at some time in their life.

Just as employers are legally obligated to provide a safe workplace in terms physical wellbeing, they must also do so in terms of mental wellbeing.

To this end, Safe Work Australia recently released a code of practice called Managing Workplace Psychosocial Hazards, and while New South Wales and Western Australia are the only two states to have already jumped on board and made it a legislative obligation, Kosova predicts the rest of the country will be quick to follow.

The code not only provides practical guidance on how to achieve the standards of work health and safety required under the WHS Act and the Work Health and Safety Regulations, it’s a useful tool for identifying and managing risks.

Legal obligations aside, it makes good business sense. The WHO’s Guidelines on Mental Health at Work note safe, healthy and inclusive workplaces not only enhance mental and physical health but likely also reduce absenteeism, improve work performance and productivity, boost staff morale and motivation, and minimise conflict between colleagues.

“When people have good mental health, they are better able to cope with the stresses of life, realise their own abilities, learn and work well and contribute actively to their communities. And when people have good working conditions, their mental health is protected,” the guidelines read.

On a purely economic level, Safe Work Australia notes that by avoiding productivity losses and costs from work-related injuries or illnesses, Australia’s economy would be $28.6 billion larger each year. Mental health is becoming an increasingly important part of that picture.

Watch: Mental health and business risk

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What employers need to know to act

For employers, creating a safe mental health space at work can also help reduce workers’ compensation claims in the long run, according to Kosova.

In giving advice to businesses looking to mitigate those risks, Kosova points to both the recommendations outlined in Safe Work Australia’s code of practice and WHO’s Guidelines on Mental Health at Work as great starting places.

“For example, having a critical mental health incident protocol and making sure that managers and team members attend some basic awareness training so they’re more equipped with the language and how to approach people in the workplace,” he says.

Good work design is also crucial. “This includes looking at the work your people are doing and asking if you’re able to introduce a degree of flexibility, autonomy and control over the work – the pace, the tempo, or the repetition,” Kosova says. “These things can contribute to negative health impacts – or conversely, they can be turned into positives.”

Identifying workplace risks is another component of creating a healthy workplace, in consultation with employees. Ideally, offering a variety of ways to contribute ensures everyone feels comfortable sharing their feedback honestly – some may prefer a one-on-one with a manager or HR, while others will be more open in an anonymous survey.

Open up the conversation

Kosova advises people leaders to walk the talk on mental health in the workplace. While initiatives like R U OK? Day have led the way in driving awareness, there’s nothing more powerful than fostering an environment of openness around discussing mental health all year round.

“Talk about it in the workplace,” he says. “[Leaders should] share relevant stories about their own mental health struggles. That helps depersonalise it and connect with people. Once they’re connected with their people, they find it easier to care both ways. That mutual care is the environment that helps people be at their best and be their most productive selves. And if they are their most productive selves, the organisation has more productive days than a competitor who perhaps isn’t doing this.”

While the pandemic has made these conversations a lot more accepted in workplaces, there’s still more to be done. “At the end of the day, workplaces are such an important part of the whole mental health picture because we spend so much time at work,” Kosova adds.

If you’re keen to find out more, Kosova says there’s some great tools available including QBE’s Q Insights resources on people risks. As well as Safe Work Australia, there are Small Business Associations across Australia, and insurance brokers can also be helpful as they are knowledgeable about assessing best practice with workplace risks.

Visit QBE Insurance’s Q Insights for more information.


This article is brought to you by Kochie’s Business Builders in association with QBE Insurance.

The advice in this article is general in nature and has been prepared without taking into account your objectives, financial situation or needs. You must decide whether or not it is appropriate, in light of your own circumstances, to act on this advice. You should ensure you obtain and consider the Policy Wording or Product Disclosure Statement and Target Market Determination for the policy before you make any decision to buy it. For more information, visit www.qbe.com.au.

Feature image: AdobeStock

Melanie Hearse is a West Australian-based freelance writer, specialising in real estate, personal finance, health, lifestyle and small business writing. Her work has appeared on four continents, and she regularly contributes to news and lifestyle outlets, magazines and speciality websites. When she’s not tapping on her keyboard, she can be found reading a book or talking the ear off a stranger, usually with one of her dogs in tow.

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