Why Mental Health in the Workplace Matters
We spend most of our waking hours at work. Daily stressors such as overwhelming workloads, looming deadlines, and complex relationships can significantly impact mental wellbeing. In fact, one in five Australian employees has taken time off in the past year due to feeling mentally unwell. Yet stigma still prevents many from seeking help.
Creating a mentally healthy workplace isn’t just compassionate. It’s a veritable necessity. Mental health issues can affect every level of performance, engagement, and morale, with silent suffering taking a toll on both employees and businesses.
The Cost of Poor Mental Health to Australian Business
In addition to being heavily personal, mental health conditions can also have economic consequences:
- The Australian economy loses around AUD 12 billion annually due to lost productivity and sick leave from mental health conditions
- Burnout, often driven by chronic stress, costs from AUD 12.2 to 22.5 billion each year
- The 2024 Indicators of a Thriving Workplace report shows that only 53% of employees rate their current wellbeing as high, while 10% have resigned due to lack of support
Failing to address mental health can lead to a ripple effect—absenteeism, lost productivity, low morale, high turnover, and reputational damage.
Breaking the Stigma: Encouraging Open Conversations
Avoiding mental health conversations only deepens stigma and isolation. Employees often worry about:
- Job security
- Judgement from managers or colleagues
- Being seen as incapable
To reduce barriers and build psychological safety:
- Encourage managers and staff to check in regularly on colleagues’ wellbeing
- Share educational resources about common mental health challenges
- Promote awareness of support services—EAPs, Lifeline, Beyond Blue, Black Dog Institute
- Support recovery and return-to-work with care and confidentiality
New Insights into Australian Workplace Mental Health
- A 2024 report by Safe Work Australia found that 14,600 mental health claims were lodged, with the median time off at 37 weeks—five times longer than for physical injuries
- The TELUS Mental Health Index (April 2024) reports 47% of Australian workers end their day feeling mentally or physically exhausted
- Young workers (Gen Z, Millennials) are leading the call for workplaces that recognise emotional boundaries and promote mental health days
What Employers Can Do to Prioritise Mental Health
1. Commit to Psychosocial Safety
Create policies, working practices, and leadership approaches that reduce stress and promote psychological safety. Low psychosocial safety climates cost Australian businesses an estimated AUD 6 billion annually
2. Provide Mental Health Training
Educate managers to recognise psychological distress and support employees effectively.
3. Roll Out Wellbeing Programs
Offer EAPs, mindfulness sessions, stress management workshops, and confidential support.
4. Promote Work-Life Balance
Encourage flexible hours, regular breaks, and discouragement of late-night work—especially important as younger generations expect work-life integration
5. Support Recovery and Return to Work
Provide empathetic return-to-work plans and modifications, maintaining contact during absences.
How Phoenix Occupational Medicine Can Help
We support organisations in creating mentally healthy, resilient work environments:
- Psychosocial risk audits to diagnose hazards
- Advisory services for policies, culture, and training
- Individual support plans and specialist referrals
- Ongoing measurables to track cultural and health improvements
Get in touch with us today to discuss how we can help your organisation.
