Originally published by the Australian Institute of Health & Safety
There has been a 47.5 per cent increase in primary psychological injury claims from 2019 to 2023 under Allianz Australia’s national claims portfolio.
These claims are also resulting in 29.9 per cent increase in average claims costs and 30.2 per cent increase in time loss, equating to some 655,000 days of absence in the Allianz portfolio alone, according to Brianna Cattanach, national manager for mental health at Allianz Australia.
“As such, proactively addressing the increasing impact of psychological injury claims in the workplace is crucial for businesses to ensure the wellbeing of their employees and maintain a productive work environment,” she said.
There are four key drivers behind the increase in psychological injury claims, according to Cattanach.
“Firstly, instances of work-related harassment or bullying and the experience of poorly managed workplace stress and burnout account for 78 per cent of all psychological injury claims,” she said.
“This tells us that there is ongoing work to be done in managing psychosocial hazards associated with workplace cultural factors, conduct and behaviour, role clarity, job demands and change management.”
On the issue of burnout, Allianz research found that 48 per cent of employees report feeling fatigued and burnt out – a 23 per cent increase on data captured in similar research from 2023.
Compounding this experience are factors outside of the workplace (including cost of living pressures) which 46 per cent of Australians said are negatively impacting wellbeing and job satisfaction.
“Workplaces need to broaden the conversations they are having around wellbeing and consider the scope of supports and flexibility they are able to provide to lessen the psychological impact of both work and life stress,” said Cattanach.
While experiences aligned to workplace culture, relationships and workload continue to dominate claims trends, she said the fastest growing cause of psychological injury is exposure to work-related violence and aggression.
Psychological injuries experienced by male employees, for example, increased by 58 per cent, while there was an 87 per cent rise for female employees since 2019.
“In particular, frontline industries need to develop a dedicated approach to reducing the instance of and providing support for the experience of workplace violence and aggression while also considering the multitude of avenues where employees may now be at risk given the rise in technology, social media and work from home arrangements,” said Cattanach.
“Finally, one of the most important insights from Allianz’s research unpacks the experience of support that employees receive from their leader in response to mental health challenges.”
The research found that 88 per cent of surveyed leaders believed they show great empathy and compassion with regards to their team’s wellbeing and personal circumstances, however only 46 per cent of employees share this sentiment.
“This really demonstrates the existence of an empathy gap developing, where the workplace response to wellbeing challenges does not offer a level of care or understanding needed by employees,” said Cattanach.
“Organisations and leaders can only manage what they know, so as a priority we want to encourage more important conversations about mental health, wellbeing and diverse needs and see leaders leading with curiosity and empathy.”
The research also suggested that organisations are planning to invest some $27.8 billion (an average of $38,771 per organisation surveyed) in diversity and inclusion practices and mental health support services over the next 12 months.
“At an organisational level, we know that positive mental health outcomes are driven by dedication to policies and programs that champion psychosocial risk management, psychological safety and the diverse needs of individuals,” said Cattanach.
“Workplace activity can range from specialised training to inclusive and flexible employment opportunities, or creating channels for story sharing and ensuring employees have a safe space to voice workplace concerns. The key is to ensure that this activity actually meets the needs of the whole workforce.”
