Workers compensation claims related to mental health are set to double by 2030, according to new research. HR professionals at these two organisations have rolled out trailblazing mental health initiatives to fight the trend of low psychological safety at work.

A recent report by the Committee for Economic Development of Australia (CEDA) has put the financial implications of poor employee mental health under the microscope, projecting that mental health-related workers compensation claims will double before 2030.

According to the report, serious workers compensation claims in Australia for mental health conditions have increased by nearly 60 per cent since 2000. Between 2000 and 2018-19, the median compensation cost for these claims tripled. Even with moderate growth assumptions, CEDA estimates that the number of claims will double again in the next 7-8 years.

Poor mental health costs the Australian economy around $70 billion every year, according to the Productivity Commission. Beyond the impact of mental health difficulties on an organisation’s bottom line, failing to take action against threats to psychological wellbeing also leaves businesses vulnerable to high levels of burnout, performance issues and increased staff turnover.

In response to growing concerns about the wellbeing of their workforces, many organisations are striving to reinvigorate their mental health strategies to better support the evolving needs of their employees. 

Among the organisations leading the way in designing and implementing these initiatives are Landcom and Australia Post, whose HR teams have been nominated for AHRI’s Workplace Mental Health Award for their tireless commitment to creating psychologically safe workplaces.

Support strategies with real results

With over 35,000 employees, Australia Post has implemented a huge range of wellbeing frameworks to support the needs of its broad and diverse workforce.

“With our size and reach across the country, Australia Post has a unique opportunity to provide a strong voice in support of the active role workplaces can play protecting mental health, promoting positive wellbeing and supporting team members with mental health conditions,” says Eliza​​ Knight-Smith, Health and Wellbeing Partner, People and Culture at Australia Post.

As well as its corporate partnerships with mental health organisations such as Beyond Blue and RU OK, Australia Post also has a suite of mental health education resources for leaders and team members, an annual program of health promotion activities and 800 health and wellbeing champions within the organisation, says Knight-Smith. Their most recent achievement has been the appointment of Australia Post’s inaugural Chief Mental Health Officer, Simon Brown-Greaves.

“HR departments work tirelessly every day to care, support and empower their organisations, within constantly evolving and emotionally demanding environments.” – Eliza​​ Knight-Smith, Health and Wellbeing Partner, People and Culture at Australia Post.

Using data and analytics from extensive surveys and assessments, the organisation was able to home in on the specific needs of its staff, and implement a framework that offered consistent and relevant support for all its employees.

“For example, following feedback that team members wanted more targeted mental health education, we have developed and implemented digital education available to every single team member.”

Landcom, the NSW Government’s land and property development organisation, has also built its most successful mental health strategies off the back of careful research into the specific types of support that employees were calling for.

“We partnered with organisations like Life Street, which is an EAP service that also provides workshops and wellbeing seminars for staff,” says Christalla Michael, Executive General Manager of People, Culture & Safety at Landcom. “We partnered with them in terms of looking at some of the key issues that we were hearing from employees, so they could tailor some of their programs for our people.”

Landcom’s approach to employee mental health is one that seeks to arm staff with the tools both to manage their own mental wellbeing and support the psychological safety of their colleagues.

“We implemented things such as a mental health mandatory e-learning course, so all staff could understand what it means to deal with other people with wellbeing issues,” says Michael.

These training programs were implemented to cater to employees who are not comfortable seeking help from a third party and would rather open up to a familiar face, she says.

Landcom’s wellbeing strategy takes a holistic approach that recognises the interconnectedness of mental and physical health. For instance, employees are offered a ‘fitness passport’, which provides discounted membership across a network of gyms and wellness centres across Australia. 

Michael also shares examples of out-of-the-box approaches the company took to support mental health during COVID-19 lockdowns.

“We had ‘laughing yoga’ rolled out, which was fantastic,” she says. “It was an opportunity for employees to be a bit silly and have a laugh. It was a facilitated session where we sat on Teams, and had someone do different laughs which made us laugh even louder.”

Employees’ response to  Landcom’s initiatives has been overwhelmingly positive, she says, with employees applauding the organisation’s commitment to listening to their needs and adapting their support frameworks accordingly.

“We have increased our employee engagement by 16 per cent over the period of time that we’ve been driving mental health and wellbeing initiatives,” says Vidia Henshaw, People and Culture Director at Landcom. “In the last employee survey we ran, 94 per cent of our employees felt that Landcom supported them in the area of health and wellbeing, which we think is an absolute standout score.

“It has also really solidified our culture. The very first thing I think many people would say about what it’s like to work here at Landcom is that we’ve got a really big focus on wellbeing and the individual, and how they bring their whole self to work.

“Culturally, we’ve landed on that as a part of our EVP. And that’s something that’s really exciting for us,” she says.

Australia Post has also seen significant positive change as a result of its mental health initiatives; Knight-Smith reports a notable shift in sensitive supportive conversations taking place and an increased level of trust in leadership care and connection.

Mental health management in the future of work

While many organisations went to great lengths to improve their mental health efforts during the pandemic, Henshaw stresses that the initiatives that were put in place to bolster employee wellbeing should not be put back in a drawer with our masks and hand sanitiser.

“Five or ten years ago, when we were talking about mental health in the workplace, it was almost like a bit of a secret. People didn’t want to be forthright and share their experiences around mental health. It’ll be interesting to see how far the pendulum is going to swing in terms of whether or not we return to that, and let some of the things that were focus areas in the last two or three years unwind,” she says.

“For [Landcom] as an organisation, we have absolutely no intention of unwinding any of our work. In fact, we want to deepen our approaches and our maturity in this space. But I do have this worry that as we transition away from a pandemic, we might lose some of the really impactful practices we’ve put in place over the last few years that drive a great workplace outcome.”

In order to avoid this, she says HR must be on the front line when it comes to keeping the leaders’ focus on wellbeing.

“It sits with the people and culture teams to remind management about the benefits we achieved as a result of the focus on wellbeing initiatives. We need to keep this front of mind, and we play a key role in reminding people that this is still important, whether we’re at home or in an office environment.”

“It’s an absolute privilege to be nominated for this award. I’m extremely proud of the work that me, my team and the organisation has done in this space, so it’s an honour to even be nominated as a finalist.” – Christalla Michael, Executive General Manager of People, Culture & Safety at Landcom.

Knight-Smith also highlights the extraordinary pressure on HR professionals to implement effective wellbeing frameworks, and applauds the profession’s tireless commitment to helping workforces thrive.

“HR departments work tirelessly every day to care, support and empower their organisations, within constantly evolving and emotionally demanding environments,” says Knight-Smith.

“Considering the distinct challenges of the past few years – bushfires, floods, the impact of the pandemic, rapidly increasing parcel volumes, physical safety concerns, and the rise in customer aggression – the importance and value of the HR function has never been more evident. We need to remember to support and celebrate the teams who work every day to care for and support us all.”

For Michael, being recognised by AHRI for Landcom’s efforts to protect mental health is a testament to the devotion of both her team and the wider organisation to providing this care.

“It’s an absolute privilege to be nominated for this award. I’m extremely proud of the work that me, my team and the organisation has done in this space. It’s an honour to even be nominated as a finalist.”

Don’t miss the chance to attend this year’s AHRI Award reception, hosted in Melbourne on 1 December. Reconnect with your HR peers and celebrate all the hard work that has gone into helping organisations to be prepared for new ways of working. Book now.