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Safety Management
Updated April 09, 2024
Throughout the advanced world, mental illness continues to be one of the leading causes of sickness absence and long-term work incapacity. Numbers are stark.
Nearly one in five adults in the U.S. live with a mental illness, according to the National Institute of Mental Health. Almost 3 million Australians have a mental illness, while an additional 440,000 working-age people in the country care for someone affected with mental illnessi.
In both advanced economies, these elevated rates of mental illness have ripple effects. In Australia, the annual cost of ill health and suicide ranges from AUD 43 billion to AUD 70 billion, according to a parliamentary productivity commission. Every year the direct cost of healthcare expenditure and other services and supports comes in at around AUD 16 billion.
In the larger American economy, the American Psychiatric Association estimated the macroeconomic loss at USD 210.5 billion per year. Every month, a single, surplus poor mental health day was associated with a 1.84 per cent drop in per capita real income growth – the equivalent of USD 53 billion lost in total income every year from 2008 to 2014, according to a separate analysisii.
Productivity loss from absenteeism and presenteeism was one of the key culprits, here. Employees with unresolved depression in the U.S. experience a 35 per cent reduction in their productivity, according to the American Psychiatric Association. In Australia, the Productivity Commission estimates that employees with mental illness take an annual average of 10 to 12 days off due to their psychological distress; total costs from lost productivity range from AUD 12 billion to AUD 39 billion.
The emotional fallout from the COVID-19 crisis is also exacerbating the trend. The Household Pulse survey in the U.S. revealed sharp rises in the number of adults suffering anxiety (from 31.4 per cent to 36.9 per cent) and depressive disorders (from 24.5 per cent to 30.2 per cent).
Rates of depression rose sharply in Australia, as well, from a pre-COVID-19 baseline of around 10 per cent of the population to nearly 30 per cent (27.6 per cent) in 2020, according to OECD data. Anxiety also rose, from 13 per cent to 21 per cent over the same period.
Frontline workers were particularly affected. In the early phase of the pandemic, a survey of critical care healthcare workers in Australia and New Zealand, conducted by a team of public health researchers and captured in the scholarly Australian Critical Care publication, found that between a fifth and a third of respondents reported moderate to extremely severe depression, anxiety, and stress symptoms.
Confirming these numbers, a poll of 10,000 Australian healthcare workers, conducted by Associate Professor Natasha Smallwood of the Royal Melbourne Hospital, came out later in 2020, finding anxiety, burn out, and depression rates of 61, 58, and 28 per cent respectively. So acute was the crisis that respondents confessed to planning to leave the profession outright.
For healthcare workers, specifically, the mental health and wellbeing crisis predates the pandemic. Work pressure and exposure to occupational violence are psychosocial hazards. Healthcare workers deal with both – sometimes daily.
Throughout the 2010s, for instance, the health care and social assistance industry in Australia logged the second highest rate of serious accepted claims caused by mental stress, again according to the Productivity Commission. The industry also saw the highest increase in costs per employee for providing mental health treatment for six months.
Nor can the compliance costs of ignoring psychological wellbeing be ignored. By law, persons conducting a business or
undertaking (PCBUs) are obligated to eliminate risks to the health and safety of their employees.
In many countries, health encompasses physical and psychological wellbeing. As a result, employers must consider a
broad array of psychosocial hazards, i.e., aspects of work that have the potential to cause psychological or physical harm.
Aspects of work likely to fall under an employer’s duty of care obligation include:
What’s then to be done to avoid severe compliance costs and recoup lost productivity and engagement? Of course, implementing a best-practice wellbeing program as noted in international standard ISO 45003 is a sure way to manage psychosocial health and safety at work.
What of the start-up costs of getting such a best-practice wellbeing program operationalised, though? Organisations certainly can’t belabour implementation in the face of such an acute mental health (and compliance) crisis. Nor can they afford to launch broad-based wellbeing efforts without an adequate means of tracking effectiveness against organisational targets.
Here, certain digital wellbeing management technologies can help businesses (1) respond to mental health and wellbeing events, (2) implement and track proactive initiatives to support their personnel, as well as (3) better understand the opportunities for mental health and wellbeing improvement.
Specific capabilities matter, too – they matter a lot. To that end, the capabilities organisations should be looking for include:
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Finally, successfully implementing wellbeing practices and programs entails senior management supporting workers to create positive habits. Available in safety management platforms, certain wellbeing management solutions, such as Noggin Wellbeing, help organisations do just that, enabling workers to create and track their own wellbeing targets using analytics that reinforce behaviours based on mood ratings.
That’s not all, the COVID-19 crisis has turbocharged an already explosive mental health and wellbeing crisis; and as safety regulators move to catch up to the advances in the wellbeing space, the mentally resilient workforces of today will only lengthen their competitive (compliance) advantage over their less developed peers.
Organisations now can’t afford to stay on the wrong side of this divide. Instead, they should invest in wellbeing management strategies and easy-to-use technologies to promote mental health resilience, reduce compliance and injury risk, as well as boost productivity, engagement, and morale.
i. Edie-Louise Diemar, HRM: Employers’ role in addressing Australia’s $220 billion mental health issue. Available at https://www.hrmonline.com.au/ mental-health/productivity commission-employers-role/#:~:text=The%20report%20estimates%202.8%20million,estimated%20%2417%20billion%20 a%20year.
ii. Penn State, Science Daily: Poor mental health days may cost the economy billions of dollars. Available at https://www.sciencedaily.com/ releases/2018/07/180730120359.htm.