Read The Times Australia

Daily Bulletin

Australians are spending more on mental health services and employers need to take notice

  • Written by: The Conversation Contributor

New data released by the Australian Institute of Health and Welfare (AIHW) shows that Australians spent an estimated A$8 billion on mental health related services in 2013-14. The direct financial impact on Australian business is in the vicinity of $11 billion every year, largely due to absenteeism ($4.7 billion) and reduced productivity ($6.1 billion) from unwell workers still attempting to work.

All this shows that mental health is more than a social issue. It should also be right at the top when we are thinking about which factors influence productivity and prosperity.

At the launch of the government’s response to the National Mental Health Commission in November last year, Prime Minister Malcolm Turnbull said:

“ Mental illness gnaws away at participation, it gnaws away at productivity.”

Federal and State Government spending on mental health services has steadily increased over time although what’s not known is how much employees are spending out of their own pockets.

image CC BY-ND

In recent years, the big implications mental ill-health has on economic productivity and production have become clearer. Of the 3.7 million Australians who have mental health problems in any year, some 3 million have a mild to moderate condition. Many of these are in paid work but they are not there as often as they should be, or contributing as much as they would like when they are there.

A 2014 report from PricewaterhouseCoopers (PwC) found mental health conditions result in around 12 million days of reduced productivity for business in this country each year. And, given one in six people in employment experience a mental health issue every year, those millions of days are being lost across the economy; in every sector and among organisations of all sizes. This is not just an issue for the big end of town.

image CC BY-ND

A 2012 OECD report also sought to quantify the productivity losses caused by mental ill health. It found workers with a mental disorder are absent for work for health reasons more often than other workers (32% versus 19%), and they are away for longer (six days versus 4.8). The report also concluded that 74% of workers with a mental disorder reported reduced productivity while they were at work in the previous four weeks, compared to 26% of workers without a mental disorder.

So what can business do to reduce those losses? Plenty.

A few years ago the National Mental Health Commission joined with the business sector, the mental health sector and the government to form the Mentally Healthy Workplace Alliance. It commissioned a study that combed peer-reviewed literature to find what workplaces can do in relation to stress, mental strain, psychological health and wellbeing. That report, Creating Mentally Healthy Workplaces, concluded there were six key areas and strategies for business to explore.

Many of the report’s recommendations are common sense measures. Things like smarter work design and positive work cultures, for example, were found to be key to preventing mental health problems. Similarly, promoting resilience and early intervention can help reduce the impact of mental ill health, and promote recovery.

In 2014, the Alliance teamed up with beyondblue to launch Heads Up, a national campaign for mentally healthy workplaces. The response of businesses that have signed up has been encouraging. They report lower turnover rates, less time off due to stress related injuries and find staff are managing their own mental health “up front”.

All of this makes good business sense. In fact, the PwC research suggests the average return on every dollar invested in improving mental health yields a $2.30 return. It also compared the return on investments in mental health for small, medium and large organisations.

image CC BY-ND

Across the country, our awareness of the importance of mental health is gradually improving. People are taking stock. A Heads Up survey of 1000 Australian workers found workers will leave jobs they judge to be mentally unhealthy.

So the evidence is in and smart employers are taking action. It makes sense on so many fronts. If we enable people to live contributing lives – to lead the type of fulfilled lives we all seek in terms of relationships, family and jobs – we can lift national productivity and make our country a kinder, better place to live.

One word of caution however. Creating a mentally healthy workplace is not a set-and-forget type action. It takes ongoing care and attention. And, like all key areas of organisational culture, change has to come from the top.

This article is the first in a series on mental illness and the workplace.

If you are distressed by this story or want to seek help for someone you know, please contact Lifeline 13 11 14 lifeline.org.au or SANE Australia 1800 187 263 sane.org/get-help

Authors: The Conversation Contributor

Read more http://theconversation.com/australians-are-spending-more-on-mental-health-services-and-employers-need-to-take-notice-53642

Business News

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The strategic rise of Bali as Australia’s next essential healthcare support hub

As Australian healthcare providers grapple with unprecedented operational bottlenecks, a new nearshore model is quietly transforming patient care delivery. Forward-thinking organisations,  including...

Daily Bulletin - avatar Daily Bulletin

Cost Savings and Benefits of Using Used Pallets in Logistics

In today’s competitive logistics and supply chain industry, businesses are constantly looking for ways to reduce operational costs without compromising efficiency and reliability. One of the most prac...

Daily Bulletin - avatar Daily Bulletin

How Fulfilment Services in Australia Help Businesses Scale Efficiently

The growth of e-commerce and modern retail has transformed customer expectations. Consumers now expect fast shipping, accurate order processing, and seamless delivery experiences regardless of where...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Moving Out of a Rental in Melbourne? A Practical Moving Checklist

Moving out of a rental in Melbourne is one of those things that always feels further away than it ...

Why a Cordless Rebar Tying Machine Is a Smart Investment for Australian Construction Projects

Tying reinforcing steel by hand means spending hours bent over while making the same twisting moti...

How to Get a Document Notarised in Sydney: What to Bring, What It Costs and How Long It Takes

If an overseas bank, embassy, university, employer or land registry has asked you for a notarised ...

The 2026 Used-Car Market

For a few strange years, the used-car market rewrote its own rules. Supply shortages sent second-h...

Why CCTV Alone Is Not Enough for Modern Business Security

Cameras are usually the initial step that companies take to strengthen their physical security. If...

Why Every Workplace Should Take Emergency Preparedness Seriously

Emergency planning is one of those things many workplaces know they should think about, but it oft...

Why Clearer Communication Still Matters in a Digital-First Business

It’s never been easier for businesses to communicate, but that doesn’t mean they’re always communica...

What Happens After You Lodge a BYDA Enquiry? The Step Most Excavation Projects Miss

Every excavation project in Australia — from a backyard deck footing to a multi-storey commercial bu...

How to Choose the Right Dentist on the Gold Coast

Finding a dentist you trust is one of those decisions that quietly affects your health for years, ye...