Reducing the cost of mental health in the workplace

Approximately 45% of Australians will experience a mental health disorder during their lifetime, which can have a profound impact on Australian businesses.

Productivity costs associated with mental health can be understood in terms of absenteeism, presenteeism, disengagement and negative implications for work and client relationships.

Despite this, many business owners see it as being impractical to adjust their business practices in the interests of improving employee mental health. This is despite the fact that around 15% of depression is attributable to work.

Kïrsten Way, from the Centre for Sustainable HRM and Wellbeing in the Faculty of Law and Business at the Australian Catholic University, said that while employers may not be duty-bound to manage the risk of all mental health disorders within the community, they are still required to manage the risk of mental health disorders associated with work.

“There may be more circumstances where they are required to act, but this approximately 15% is the bare minimum,” said Way.

She said that high work demands include time pressure, dealing with emotional clients, exposure to emotionally distressing situations, role overload, low control over how the work is done, low levels of support to achieve work outcomes, role conflict, poorly managed relationships including conflict between co-workers or bullying, poorly managed change or a lack of recognition and reward.

“Each of these risk factors is underpinned by significant theory and empirical evidence that supports these being central to knowing if your jobs are high risk for mental health disorders,” said Way.

She suggests that employers measure the risk factors known to increase mental health issues, ask workers about their experience of these risk factors and, where appropriate, put benchmarks in place.

“What is reasonably practicable when ensuring psychological health and safety is relatively clear, and implementing these steps should never mean that businesses are less competitive,” said Way.

“Indeed, the best risk control measures for ensuring psychological health and safety have measurable productivity benefits, most commonly manifested as a decrease in absenteeism or turnover. These benefits can be reaped not only by those who may be experiencing harm from exposure to psychosocial hazards, but for the entire workforce. When you consider the base prevalence of mental health disorders, these benefits may be significant for your business.”

To watch Kirsten Way's video about mental health in the workplace, visit the Safe Work Australia website.

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