Rising Mental Health Claims

by ABILITY GROUP | Feb 19, 2024 | Claim management, Injury Management, Injury Prevention, Managing Psychosocial Hazards

In recent years, Australia has witnessed a concerning surge in workers’ compensation claims related to mental health issues. This trend not only reflects the growing awareness of workplace mental health challenges but also underscores the need for comprehensive support systems and interventions. We delve into the factors contributing to this rise and explore potential solutions to address rising mental health claims.

Understanding the Rise

The increase in mental health-related workers’ compensation claims in Australia is multifaceted and can be attributed to several key factors:

1. Heightened Awareness: There has been a significant increase in awareness and recognition of mental health issues in the workplace. Employees are now more inclined to report mental health-related issues, leading to a rise in compensation claims
2. Work-Related Stress: Modern workplaces often operate in high-pressure environments, leading to increased levels of work-related stress. Factors such as long working hours, tight deadlines, and job insecurity contribute to heightened stress levels among employees
3. Stigma Reduction: Efforts to reduce the stigma surrounding mental health have encouraged individuals to seek help when experiencing psychological distress. This has resulted in more employees coming forward to seek support and lodging compensation claims for work-related mental health issues
4. Changing Work Dynamics: The shift towards remote work, intensified by the COVID-19 pandemic, has introduced new challenges such as social isolation, blurred work-life boundaries, and increased feelings of disconnection, all of which can impact mental well-being
5. Inadequate Support Systems: Despite growing awareness, many workplaces still lack adequate support systems and resources to address mental health issues effectively. This deficiency can exacerbate existing problems and contribute to the rise in compensation claims

Addressing the Issue

To effectively address the surge in mental health-related workers’ compensation claims, it is imperative to implement comprehensive strategies that prioritise the well-being of employees. Here are some potential solutions:

1. Promoting Mental Health Awareness: Employers should prioritise mental health awareness programs and initiatives to foster a supportive and inclusive workplace culture. This includes providing education on stress management, resilience building, and destigmatising conversations around mental health
2. Implementing Work-Life Balance Policies: Organisations should promote work-life balance by implementing flexible work arrangements, encouraging regular breaks, and setting realistic workloads. Creating a culture that values employee well-being can help mitigate work-related stressors and reduce the likelihood of mental health issues arising.
3. Enhancing Support Services: Employers should invest in comprehensive support services, including employee assistance programs (EAPs), counselling services, and mental health resources. These services should be easily accessible and confidential to encourage employees to seek help when needed
4. Training Managers and Supervisors: Providing managers and supervisors training on recognising signs of mental distress, managing workloads effectively, and offering appropriate support can play a crucial role in preventing mental health issues and reducing workers’ compensation claims
5. Creating a Psychologically Safe Environment: Organisations must prioritise creating a psychologically safe work environment where employees feel comfortable discussing mental health concerns without fear of judgment or reprisal. Open communication channels and supportive leadership are essential in fostering trust and well-being.
6. Regular Monitoring and Evaluation: Employers should regularly monitor and evaluate the effectiveness of their mental health initiatives to identify areas for improvement and ensure that the needs of employees are being met adequately

The rise in mental health-related workers’ compensation claims in Australia highlights the pressing need for proactive measures to support employee well-being in the workplace. By prioritizing mental health awareness, implementing supportive policies, enhancing support services, and fostering a culture of openness and support, organizations can mitigate the risk of mental health issues and create healthier, more resilient workplaces for all. It is essential for employers, policymakers, and stakeholders to collaborate effectively to address this critical issue and ensure the holistic well-being of the workforce.

Mental health or psychological workers compensation claims are typically 7-8 times more than physical injuries. They are often complex & if not actively managed, they can have substantial impacts to your business.

Need help with a psychological or mental health related claim, contact our team to discuss.

For further information, please refer:

Source: SafeWork

Title: Psychological health and safety in the workplace report

Read Time: 10+ minutes