Academic calls for better training on how to get workers back into work following period of absence
Mental health compensation claims have risen by almost 100% since 2022, and one academic says this isn’t surprising — and is set to get worse.
“We’ve been seeing issues for the past decade now and it’s gotten much worse because of COVID. There is an increased awareness about mental health in the workplace, but there’s also a lot of macroeconomic pressures being put on business which, ultimately, trickles down to employees,” Carys Chan, Senior Lecturer at Griffith University’s Business School, said.
“The thing I’m most shocked by is the amount it’s gone up by – depending on where you look, some sources say it could be 50 or even 60% increases.”
Mental health-related injury and illness accounted for 10.5% of the 14,000 serious claims in 2022-23, according to new figures. It has also been revealed that businesses lost an average of 37 weeks’ worth of work as a result.
The report – released by Safe Work Australia – also highlighted that mental health conditions are “one of the costliest forms of workplace injury. They lead to significantly more time off work and higher compensation paid when compared to physical injuries and diseases.”
All workers have the right to a healthy and safe working environment, yet work-related injuries and illnesses can occur in any industry or occupation, the report stated.
It found that the average amount of compensation paid to employees sat at over $65,000 and the average time lost from compensation claims (37 working weeks) was more than five times the time lost across all serious claims.
“We’ve seen work really speeding up, primarily bought on by artificial intelligence and generative AI, but there are also more traditional issues we’re seeing as well,” Chan said.
“Massive layoffs have put a lot of pressure on people both mentally and physically – we’re seeing more people suffering burnout.”
Australia’s Mental Health Check Up – commissioned by KPMG in November 2024 – found that, in 2021, people with mental health conditions returned to work after an average of 2.6 years. This included a greater number of people who were long-term impacted compared with the previous year. Flexible working from home during COVID is a main factor in this change, the report states.
It was also found that the time taken for mental health claims to be closed also increased – with white collar workers being able to work from home contributed for the rise.
“The entire process needs to prioritise employee wellbeing over immediate productivity,” Chan added.
With compensation both costing companies’ money and time – there needs to be greater training on how to get workers back into work following a period of absence, she said.
“Managers and leaders have pressures of their own, like from investors. It means a lot of them don't actually know how to have the right sort of conversation to make their employees feel better about returning to work. They just pass on [that] so that lack of human touch isn’t prevalent - it would be good if we treat our employees as humans.”
The focus needs to be moved from the business to the individual to ensure concessions and support are available to all employees to make the return to work more seamless, Chan added.
“In my opinion, this isn’t going to slow down. From 2023 to now, I can see the stats going up. COVID made many leave their jobs and others decided to take a break. In general, though, when you fall ill and you’re wanting to seek help, you have to wait for a long time.”
The Australian government has a number of programs and initiatives to support and improve people suffering with mental ill-health, including funding for phone and online mental health services.
There are a number of things employers can do to support employees returning to work following time away for mental health reasons, according to iCare. These include implementing measures such as addressing hazards and putting in place safety measures to mitigate any chance of additional injuries.
Adjustments to the employee’s workload and a review of their day-to-day responsibilities should also be done, according to their website.
“Regular check-ins with managers help monitor progress without adding pressure. Allowing them to work fewer days initially is a great way to help ease them back into their professional environment,” Chan said.
“Training managers in mental health support is also very helpful. This allows support systems to be in place and makes employees feel comfortable.”
