As we observe World Mental Health Day 2024, the importance of addressing mental health in the workplace is undeniable. The theme, “It’s time to prioritise mental health in the workplace,” comes at a crucial moment. According to SafeWork NSW, mental illness is now the leading cause of long-term work incapacity and sickness absence in Australia, costing the economy up to $12 billion annually. Given the amount of time we spend at work, our workplaces have a significant influence on our mental wellbeing. When our work environment is supportive, it provides us with a sense of purpose, belonging, and accomplishment. However, when it negatively impacts mental health, it can lead to serious consequences for both individuals and businesses.
A mentally healthy workplace is one that promotes mental wellbeing, supports individuals experiencing mental ill-health, and helps prevent mental health risks. Creating such a workplace isn’t just good for employees—it’s smart business. Here are seven compelling reasons why prioritising mental health in your workplace should be a top priority.
When employees feel mentally healthy and satisfied with their jobs, they perform better. Mental health issues, on the other hand, can significantly reduce productivity. According to a 2020 report by PwC Australia, untreated mental health conditions cost Australian businesses an estimated $10.9 billion each year through absenteeism, presenteeism (when employees are at work but not fully productive), and compensation claims. By investing in evidence-based mental health initiatives, businesses can create a positive return on investment through improved performance, reduced absenteeism, and higher employee engagement.
Workplace stress is becoming more common, with serious consequences for both mental and physical health. In any given year, one in five Australians will experience a mental health issue. The Australian Psychological Society’s 2023 survey found that 73% of Australians identify work as a major source of stress. Long hours, excessive workloads, and ambiguous job expectations can push employees toward burnout.
A mentally healthy workplace is one of the most important factors employees consider when looking for a job. Yet, a report by Beyond Blue found that while 91% of employees believe mental health is important, only 52% feel their workplace is mentally healthy. This gap presents a clear opportunity for improvement.
Poor workplace mental health often leads to high staff turnover, which is costly both financially and in terms of lost knowledge. By investing in mental health initiatives, businesses can foster a supportive culture where employees feel valued and engaged, leading to increased retention. Employees who feel their mental health is prioritised are far more likely to stay with their employer for the long term.
Under Australian law, employers are required to provide a safe working environment, and that includes mental health. The Work Health and Safety Act 2011 emphasises that psychological health is just as important as physical safety. Ignoring mental health risks can result in legal penalties and costly workers’ compensation claims. Read our article: Navigating Psychosocial Risk Legislation in Australia.
The Australian Government’s National Mental Health Commission recommends that businesses implement risk management strategies to identify and mitigate psychosocial hazards like bullying, harassment, and unreasonable workloads. Prioritising mental health and taking a strategic approach ensures that businesses not only meet their legal obligations but also create a safe, supportive environment for employees.
Despite growing awareness, stigma around mental health remains a major barrier for employees seeking help. Many workers still fear that admitting to mental health challenges could affect their career. According to SANE Australia, 35% of Australians with mental health conditions experience stigma or discrimination in the workplace.
Employers have the power to change this narrative. By fostering a culture of openness, where mental health is discussed without judgment, organisations can help reduce stigma. Encouraging conversations about mental health, offering mental health training, and upskilling leaders in their rights and responsibilities can create an environment where employees feel safe to seek the support they need. Read our article: Psychosocial Risk and the Critical Role of Leaders
Investing in mental health is not only beneficial for employee wellbeing but also yields significant financial returns. According to research by Deloitte, the average return on investment (ROI) for workplace mental health programs is 5.2:1, meaning for every dollar invested, businesses can see more than five dollars in return. This ROI comes from reductions in absenteeism, presenteeism, and compensation claims, as well as improvements in employee engagement and productivity.
The Australian Institute of Health and Welfare also reports that mental health conditions account for 13% of Australia’s overall disease burden, meaning that addressing mental health in the workplace can also have a long-term impact on employees’ physical health. When businesses focus on mental health, they contribute to the overall wellbeing of their workforce, improving job satisfaction and reducing turnover.
In today’s competitive job market, businesses that prioritise mental health are more likely to attract and retain the best talent. Employees increasingly value workplace cultures that prioritise wellbeing, work-life balance, and mental health support. A positive workplace culture has a ripple effect, contributing not only to individual wellbeing but also to a more productive and harmonious work environment.
When businesses invest in mental health, they are investing in their greatest asset—their people. Mental health programs, leadership training, and supportive policies all contribute to creating an inclusive, high-performing workplace where employees can thrive.
As we reflect on World Mental Health Day 2024, it’s clear that mental health in the workplace is not just a passing trend—it’s a priority. The benefits of a mentally healthy workplace are undeniable, from improved productivity to higher employee retention, reduced stigma, and even legal compliance.
Creating a mentally healthy workplace requires a commitment to supporting employees at all levels, whether through policies and practices, leadership training, or mental health awareness programs. At Aspect Group, we’re here to help. Our Psychosocial Risk Advisory Services and Leadership Development Training are designed to equip businesses with the tools they need to create mentally healthy, thriving workplaces.