Psychosocial health claims are on the rise. Here’s how to better support your people

New data on psychological health and safety in the workplace from Safe Work Australia paints a confronting picture. 

It reveals that not only are mental health condition claims on the rise, but they’re also disproportionately impacting workers in a number of industries and demographics. Women make up 57% of claimants, and workers aged 25-34 and over 65 are also more likely to be at risk.

Mental health condition claims have risen by almost 40% between 2017-18 and 2021-22, according to the data, compared to an increase of 18.3% for all serious claims over the period. They now account for 9% of all workplace claims. 

Not only are mental health conditions on the rise, they also have a much more significant effect on workplace productivity and cost businesses more than other conditions. The report found that the median compensation paid for mental health conditions in 2020-21 was $58,615 per serious claim, more than three times the median of $15,743 for physical injuries and illnesses. 

The median time lost for mental health conditions was also greater, coming in at over 34 weeks per serious claim, compared to eight weeks for other conditions. 

It’s clear that the rising risk of mental health conditions and claims is significant, for both individuals and organisations. But with businesses responsible for putting measures in place to minimise psychosocial hazards at work, what is the best path forward?

While every person and every case is unique, there’s plenty that can be done to lay good foundations for psychosocial safety in the workplace, and to support people before things reach the point of a serious claim.

Make harm prevention a habit

Begin by taking a proactive, rather than reactive, approach to supporting the mental health and psychosocial safety of your people. As the saying goes, ‘prevention is better than cure’. Proactively helping people and identifying risks early on will reduce the impact of mental health conditions on your workforce.

Making harm prevention a habit means equipping your managers and team leaders with the knowledge and tools they need to identify and manage psychological risks. 

For example, proactively checking in with people, particularly those who are at greater risk due to their job function or work environment, and providing channels for people to seek support and advice both inside and outside of work hours, mean your people will be on the front foot in minimising risk. 

Identify common hazards

The report found that the industries most at risk of serious complaints related to mental health were those with frontline workers in the healthcare and social assistance sectors, where people are more likely to be exposed to hazards such as high job demands, workplace bullying and work-related occupational violence. 

Public administration and safety, education and training and retail employees also account for a significant proportion of serious workers’ compensation claims for mental health conditions, showing the breadth of workers at risk. 

Interestingly, it’s not just obvious stressors such as work-related occupational violence and bullying that lead to mental health claims. The majority of claims identified the mechanism as mental stress (92%), with more than 25% of these claims relating to work pressure. So anyone in a high-pressure environment or job function is at risk.

Safe Work Australia has some guidance on the kind of hazards to look for — which range from poor support and lack of role clarity, through to bullying, isolated working conditions and gender-based and sexual harassment. 

Now is the time to identify potential risks, consult with your employees about their vulnerabilities at work, and put clear reporting channels in place, so that every person in your organisation knows where to turn when they encounter a psychosocial hazard in the workplace. 

Foster a culture of psychological safety

Creating a climate where people feel supported and safe in raising concerns is essential in fostering a psychologically safe work environment. 

Rather than putting the onus on individuals and managers, look for tech-powered solutions and external providers that can provide round the clock, specialist support that is accessible for all workers when they need it most. 

This kind of support can also give employees anonymity in discussing their mental health concerns and pressures. This is especially important given workers making mental health claims were more likely to believe they’d be treated differently by people at work as a result, or fired if they submitted a claim.

It makes business sense

As Marie Boland, chief executive officer, at Safe Work Australia said: “Proactively managing psychosocial hazards at work not only protects workers, it also benefits businesses by improving organisational performance and productivity”.

The business case is clear. Taking proactive measures to support people and reduce risk is the best way to reduce the business bottom-line impact of workplace claims relating to psychological safety and mental health. 

Let’s help all people feel confident, cared for and safe in the workplace, and make the growing number of serious mental health complaints a thing of the past. 

Raechel Gavin is the chief people officer at Sonder.