Five Benefits of Creating a Mentally Healthy Workplace

Creating a mentally healthy workplace has many benefits for staff and organisations.

1. A Mentally Healthy Workplace Supports Staff with Mental Health Problems

Supporting the mental health of all staff is particularly important because we know that mental health problems are common in Australia.

Key Statistics	Source
1 in 5 Australians will experience a mental illness each year	Australian Bureau of Statistics (2022)
44% of Australians will experience a mental illness in their lifetime. The most common are depression, anxiety, and substance use disorders	Australian Bureau of Statistics (2022)
2 in 5 young Australians aged 16-24 experienced a mental illness in 2020-2021	Australian Bureau of Statistics (2022)
75% of mental illnesses develop before age 24.	Kessler et al. (2007)

Given these statistics it is highly likely that there are people in your workplace who are struggling with their mental health – in particular, due to the significant number of young people employed in our industry.

For people who may be struggling with their mental health, working for a mentally healthy workplace can be an important part of their recovery.

That is because, good, healthy, work:

Provides structure and a sense of daily routine;
Contribues to a sense of meaning and purpose;
Provides opportunities for feelings of achievement and accomplishment;
Provides opportunities for social inclusion and support; and
Provides financial stability,

All of which are important contributors to good mental health.

2. Not Supporting Staff Mental Health is Costly for Individuals & Businesses

Mental health problems can often result in symptoms such as people not sleeping well, being unable to concentrate, having low energy levels, feeling unmotivated, and physically not feeling well. These symptoms can result in absenteeism (the inability to go to work) and presenteeism (the inability to fully function at work).

Key Statistics	Source
Mental ill health related absenteeism and presenteeism cost Australian businesses $17 billion per year. This does not include the cost of turnover.	Australian Institute for Health and Safety (2017)
2 in 5 Australians have left a job because of a poor workplace mental health environment each year. This is a big loss of expertise and puts more staff under pressure.	Headsup (2014)
Mental health claims are the most expensive, and fastest growing type of workers compensation claim. The median time lost for mental health conditions is 30.7 working weeks per serious claim, compared to 6.7 working weeks per serious claim for physical injuries	Australian Institute for Health and Safety (2022)

Therefore, two key components of a creating mentally healthy workplace are: 1) preventing mental injuries from occurring in the workplace (learn more here) and intervening early to support workers who may be struggling with their mental health (learn more here).

3. Promoting Mental Health Yields A Positive Return on Investment

Building a mentally healthy workplace has many benefits for employees and business owners. These benefits include:

Improved staff wellbeing
Increased staff engagement
Fewer work-related injuries
Reduced absenteeism and presenteeism
Increased productivity
Reduced staff turnover

A report from PWC found that, on average, every dollar spent to promote good mental health in the workplace reaped a return of $2.30.

Source: PWC. (2014). Creating a Mentally Healthy Workplace: Return on Investment Analysis. Final Report. Australian Government National Mental Health Commission. pwc.com.au/publications/pdf/beyondblue-workplace-roi-may14.pdf

4. It’s What Workers Want!

Recruiting and retaining talent requires a strong employee value proposition – a compelling answer to the question “Why would a highly talented person choose to work here?”

A recent report from PWC has found that, following pay and remuneration, workers most value wellbeing at work. In fact, 22% of employees valued support of their wellbeing above all other factors.

Source: PWC. (2021). The Future of Work. What Workers Want: Winning the War for Talent. https://www.pwc.com.au/important-problems/future-of-work/what-workers-want-report.pdf

5. It Helps Meet your Legal Obligations

Under the Occupational Health and Safety Act 2004 (Vic) (the OHS Act) employers must provide and maintain for employees "a working environment that is safe and without risks to health". The OHS Act defines “health” to include mental health.

Read more about the legal duty to provide a not harm employee mental health here.