Mental illness is a major issue for Australian employees and their organisations. ABS statistics show that one in five Australian adults will experience a mental illness in any given year and that many individuals will experience mental ill-health in the workplace. Over three million Australians each year experience depression and/or anxiety disorders, and as many as one in four people experience an anxiety disorder in their lifetime.

Workers aged 18-34 have begun reporting worse mental health symptoms, which spiked during the period of Covid-19. In 2017,15% of young workers were reporting high levels of psychological distress, which doubled up to 30% during the period of Covid-19. Reports show that the most common reasons for work-related mental stress in Australia are: work pressure (31%), work-related harassment (27%), and workplace violence (14%).

According to research by the Black Dog Institute, depressive symptoms are more likely to develop amongst individuals who work in industries and jobs that have higher levels of psychological demand, lower levels of flexibility in decision-making, low levels of social and environmental support, and longer working hours. The expense of mental health conditions to organisations can be exorbitant, and research from Beyond Blue indicates that individuals with untreated depression are less productive and more absent, costing organisations up to $9,660 per full-time employee per annum. There are many people with mental health conditions, however, who work at all different levels of employment and are flourishing. With the right work environment and management practices, even those with severe conditions can be highly effective and fulfilled employees.

Employee wellbeing is a concept that has gained increasing attention in recent years, with many organisations investing in wellbeing to increase worker productivity, engagement, and return on investment. Wellbeing is not merely the absence of illness of disease but is a complex combination of a person’s physical, mental, emotional, and social health factors. Globalisation and the fast-paced technological world of today, have seen individuals’ lives affected by social, lifestyle, and employment changes. Changing expectations, including increased retirement age, flexibility, engagement, and outside access to work emails are some of the many revolutions individuals now face in the workforce. Despite these changes, however, individuals still have the same basic human needs for social support, physical safety, health, and a feeling that they can cope with life. Due to a large part of people’s lives being spent at work, individuals are demanding that their employers help them to achieve these needs.

Extensive research shows that workers who are happy and healthy at work and have a positive attitude toward their well-being, are more productive, and engaged, and have lower rates of absenteeism at work. According to the article posted by CFO magazine in 2023, Workplace absenteeism plays a big role in lost productivity and is a massive cost to businesses. In fact, absenteeism cost Australian businesses $24.2 billion lost productivity in the year 2022. The study also showed that employers in Australia have seen an increase in absenteeism to 70% in one year (from 2022 to 2023). This is causing the businesses to lose productivity, and is also affecting the business in less measurable ways, such as reduced customer service and satisfaction, reduced staff collaboration and teamwork, and lost revenue.

In addition to physical health, positive mental health is also vital for workers’ overall well-being. In the working context, mental well-being is determined by the interaction between the working environment, the nature of the work, and the individual. Developing an attitude of mind that enables the employee to have self-confidence, self-respect, and be emotionally resilient can greatly influence a person’s well-being. If the working environment does not support these elements and the individual feels that they don’t have a sense of purpose or aren’t being fulfilled, positive mental well-being is impacted, and as a result, mental health issues can subsequently arise.

The global financial crisis has been raised as a contributing factor to the declining mental health of working Australians as many now face greater uncertainty and job insecurity.

According to the JobAccess General Manager, Daniel Valiente-Riedl, improvement of mental health in the workplace is vital as it directly impacts the organisation’s productivity and profitability. He reveals that the failure to adequately respond to the needs of employee’s mental health challenges is costing Australian Businesses $11 billion a year. He also reveals that nine in ten employees believe working in a mentally healthy workplace is important. According to the National Study of Mental Health and Wellbeing 2022 report by the Australian Bureau of Statistics, one in five Australians experience ill mental health in a 12-month period.

Successful health and wellbeing programs provide an excellent return on investment, including decreased sick leave absenteeism by 25.3%, decreased worker’s compensation costs by 40.7%, and a saving of $5.81 for every $1 invested in employee health and wellbeing. Additionally, the financial performance of an organisation depends on its organisational health, and thriving and healthy workforces typically perform 2.2 times above average compared with organisations that don’t invest in their employees’ health and wellbeing. This demonstrates a link between mental health and return on investment.

Recognising and promoting mental health and well-being in the workplace is essential for creating a safe and healthy workplace. Regularly reviewing your organisational well-being policies and procedures, engaging in leadership and management training to support and encourage employees in the workplace, and removing obstacles to keeping employees at work, are some of the many initiatives employers can participate in to improve worker health and well-being.

Contact a  Steople consultant  to discuss on how to create a healthy workplace environment for your employees.