Mental illness is now recognised as the fastest-growing workplace injury worldwide, costing businesses hundreds of billions annually and impacting employee wellbeing more than traditional physical injuries. Employers who fail to address psychosocial hazards risk higher absenteeism, reduced productivity, and significant compensation claims.

Why Mental Illness is the Fastest Growing Workplace Injury

• Independent research shows psychological injuries are increasing faster than physical ones.
• Workplace stressors such as unrealistic workloads, poor management practices, bullying, and lack of support contribute to rising cases.
• Surveys reveal that over 60% of employees have experienced mental illness due to employers failing to manage psychosocial hazards.

Economic and Organisational Impact

• Cost to businesses: Mental illness costs hundreds of billions per year globally in lost productivity, compensation claims, and healthcare.
• Absenteeism & presenteeism: Employees either miss work or attend while mentally unwell, reducing efficiency.
• Retention challenges: High turnover rates occur when workplaces neglect mental health.
• Legal exposure: Employers face growing liability under workplace health and safety laws if psychological hazards are ignored.

Key Recommendations for Employers

• Treat psychological health like physical health: Workplace Health & Safety (WHS) frameworks must prioritise mental wellbeing equally.
• Implement no-liability treatment policies: As recommended by the Productivity Commission, workers should access mental health support without complex claims processes.
• Promote supportive culture: Encourage open conversations, reduce stigma, and provide training for managers.
• Risk assessments: Regularly identify and mitigate psychosocial hazards such as excessive workloads or toxic team dynamics.
• Employee assistance programs (EAPs): Offer confidential counseling and mental health resources.

Risks of Ignoring Mental Health

Reduced competitiveness due to lower productivity and innovation.

Legal penalties under workplace safety laws.

Reputation damage from poor employee wellbeing practices.

Conclusion

Mental illness is no longer a secondary workplace issue, it is the fastest-growing workplace injury and demands urgent action from employers. By prioritising psychological health alongside physical safety, organisations can reduce costs, improve employee wellbeing, and build resilient, productive teams.

The
Australian Council of Trade Unions has welcomed some recommendations from the
Productivity Commission, including no-liability treatment for mental health
injuries and claims.

Psychological
health and safety should be treated with the same importance as physical health
and safety and WHS in the workplace.

ACTU conducted a survey this year and I was found that over 60% of respondents had experienced It was also found in this survey that nearly half of participants felt their employers were not prepared to support workers experiencing mental illness in the workplace.

At ABILITY GROUP, we specialise in workplace health and safety strategies that protect both physical and psychological wellbeing.

SOURCE: https://www.miragenews.com/mental-illness-fastest-growing-workplace-hazard-costs-hundreds-of-billions-per-year/