Annual Distribution of Mental
Ill-Health in Australia

National Mental Health Commission, Contributing lives, thriving communities – Report of the National Review of Mental Health Programmes and Services, 30 November 2014, Summary, p. 8. Cited in https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Health/Health/Fourth%20Interim%20Report/c02

Comparing the Costs

Claims for psychological injury are disproportionately higher in cost and duration than physical claim costs.

Australian Government Comcare 2016, Psychological Injury and Performance, Comcare, https://www.comcare.gov.au/__data/assets/pdf_file/0017/134315/Psychological_Injury_and_Performance_PDF,_661_KB.pdf
Safework Australia Website 2019 - Mental Health, Snapshot of mental Health Conditions https://www.safeworkaustralia.gov.au/topic/mental-health

Comparing the Costs

Claims for psychological injury are disproportionately higher in cost and duration than physical claim costs.

Australian Government Comcare 2016, Psychological Injury and Performance, Comcare, https://www.comcare.gov.au/__data/assets/pdf_file/0017/134315/Psychological_Injury_and_Performance_PDF,_661_KB.pdf
Safework Australia Website 2019 - Mental Health, Snapshot of mental Health Conditions https://www.safeworkaustralia.gov.au/topic/mental-health

Productivity and Absenteeism

  • Wages paid to absent employees
  • High-cost replacement workers
    (overtime pay for other employees and/
    or temporary workers)
  • Administrative costs of managing absenteeism
  • Poor quality of goods/services resulting from overtime fatigue or understaffing
  • Reduced productivity
  • Excess manager time (dealing with discipline
    and finding suitable employee replacements)
  • Safety issues (inadequately trained employees
    filling in for others, rushing to catch up after
    arriving as a replacement, etc)
  • Poor morale among employees who have to
    “fill in” or do extra work to cover
    absent coworkers
Forbes Media LLC 2013, The Causes and Costs of Absenteeism in the Workplace, 10 July 2013, Forbes, https://www.forbes.com/sites/investopedia/2013/07/10/the-causes-and-costs-of-absenteeism-in-the-workplace/#2e84845e3eb6

Direct Costs

  • Wages paid to absent employees
  • High-cost replacement workers
    (overtime pay for other employees and/
    or temporary workers)
  • Administrative costs of managing absenteeism

Indirect Costs

  • Poor quality of goods/services resulting from overtime fatigue or understaffing
  • Reduced productivity
  • Excess manager time (dealing with discipline
    and finding suitable employee replacements)
  • Safety issues (inadequately trained employees
    filling in for others, rushing to catch up after
    arriving as a replacement, etc)
  • Poor morale among employees who have to
    “fill in” or do extra work to cover
    absent coworkers

Modelling on Return on Investment

We will work to model an accurate ROI based on your
intervention and key metrics. However, the following gives
your some approx expectations.

PWC (2014) modelled various initiatives to facilitate better mental health in Australian workplaces which it estimated would deliver an average return to employers $2.30 for every $1.00 invested.

PricewaterhouseCoopers 2014, Creating a mentally healthy workplace. Return on investment analysis, PwC https://www.headsup.org.au/docs/default-source/resources/beyondblue_workplaceroi_finalreport_may-2014.pdf

Similarly, KPMG and Mental Health Australia (2018) estimated a return to Australian employers which ranged from $1.30 to $4.70 for every $1.00 invested

PricewaterhouseCoopers 2014, Creating a mentally healthy workplace. Return on investment analysis, PwC https://www.headsup.org.au/docs/default-source/resources/beyondblue_workplaceroi_finalreport_may-2014.pdf

PWC (2014) modelled various initiatives to facilitate better mental health in Australian workplaces which it estimated would deliver an average return to employers $2.30 for every $1.00 invested.

PricewaterhouseCoopers 2014, Creating a mentally healthy workplace. Return on investment analysis, PwC https://www.headsup.org.au/docs/default-source/resources/beyondblue_workplaceroi_finalreport_may-2014.pdf

Similarly, KPMG and Mental Health Australia (2018) estimated a return to Australian employers which ranged from $1.30 to $4.70 for every $1.00 invested

PricewaterhouseCoopers 2014, Creating a mentally healthy workplace. Return on investment analysis, PwC https://www.headsup.org.au/docs/default-source/resources/beyondblue_workplaceroi_finalreport_may-2014.pdf

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