Category: stress

Short radio interview on the cost of workplace mental health

I was interviewed this evening on the cost of mental stress by Your Rights at Night on Radio Adelaide. The podcast is now available HERE.

I have listened back to this interview this morning and have some advice for other OHS professionals who may find themselves in a similar situation.

Insist on seeing the interview questions prior to the interview.  I asked for this but the questions weren’t available.  Colleagues have advised me to refuse the interview if this occurs again as there is a risk of being trapped in a discussion that is very different from what was expected.

If the questions aren’t available, ask for the core theme of the interview so that topic parameters are established earl in the process. Continue reading “Short radio interview on the cost of workplace mental health”

If everyone claimed compensation for work-related stress in Australia, the estimated annual cost would be $83 billion

Lucinda Smith of Esteem People Management has made some excellent points about stress and mental health in her article – “The People Risk of Work-Related Stress“.  On determining the cost of mental stress she acknowledges authoritative government estimates but, significantly, states of the data:

“Although not fully exploring the issue of workplace stress because it only applies to accepted claims,…”

This is the core of much of the frustration in the OHS profession that injury and illness is always underestimated because data is based on workers’ compensation statistics.

Where Smith progresses the argument, though, is by comparing several important pieces of data.  Quoted in a Safe Work Australia report, Medibank Private estimated in 2008 that the direct cost of work-related stress was

“…$14.81 billion to the Australian economy, and $10.11 billion to Australian employers because of stress-related presenteeism and absenteeism.” (page 3 of the Safe Work Australia report)

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Beyondblue’s latest research report is too narrow

Beyondblue has just released a report into the cost of mental health in the workplace prepared by PricewaterhouseCoopers (PwC) and called “Creating a mentally healthy workplace – Return on investment analysis“. The report is interesting but of limited use for those looking for ways to make their own workplaces safer and healthier with minimal cost.  The Beyondblue  media release claims

“… that Australian businesses will receive an average return of $2.30 for every $1 they invest in effective workplace mental health strategies.

The research, which looked at the impact of employees’ mental health conditions on productivity, participation and compensation claims, also found these conditions cost Australian employers at least $10.9 billion a year.”

The first claim looks attractive but achieving such a return is unlikely unless the company includes the following:

  • “commitment from organisational leaders,
  • employee participation,
  • development and implementation of policies,
  • provision of the necessary resources, and
  • a sustainable approach.” (page iv)

The best chance for the return on investment (ROI) will likely occur in a company that has an enlightened management, “necessary resources” and a leadership that is already likely to have mental health and a safe organisational culture on its agenda.  This is a rare combination which limits the application of the PwC report findings.

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Self-employment should not be seen as a work/life solution

Work/life balance is a close cousin to occupational health and safety (OHS), particularly health.  It is often the gateway people use to reduce occupational health risks such as stress and other psychosocial issues.  Moving to self-employment can be a successful strategy but it is not as easy as simply relocating one’s individual workplace or teleworking, the expected control on work hours may not eventuate and it may be very difficult to maintain a livable wage.  In The Saturday Age on April 26 2014 (not locatable on-line), Dr Natalie Skinner of the Australian Centre for Work + Life, provided a useful perspective.

Skinner writes that her annual surveys over the last six years have indicated that:

“self-employment is neither better nor worse for work-life conflict than being an employee.”

Skinner acknowledges that this seems odd because there has been so much debate about the win-win of workplace flexibility.

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Lessons from Royal Commission into Home Insulation Program

Australia’s Royal Commission into the Home Insulation Program (HIP) demands the attention of all occupational health and safety (OHS) professionals, primarily, because a job creation and economic stimulus program was so poorly planned at the highest level of government, that it seems to have established a culture that led to workplace deaths. However the Royal Commission is already revealing information that shows how OHS is misunderstood by decision-makers, a situation that still persists in many jurisdictions and will only change by watching the Royal Commission carefully and analysing this information through the perspective of workplace safety.

State of Knowledge

The Royal Commission has been investigating when the workplace deaths in New Zealand from using metal staples with foil insulation were known by the Australian Government.  In OHS-speak, it is trying to determine the state of knowledge on this workplace hazard in the decision-making process.  The deaths of four young Australian workers prove that the state of knowledge was inadequate however it is well established that Australia and New Zealand operate independently and that, although there are legislative similarities, it is rare for a death in one country to generate regulatory change in another.  (One could look to the quad bike safety issues for an additional example.)  The recent legislative changes in New Zealand may indicate that they listen to Australia more than vice versa.

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Fair Work Commission girds its loins for workplace bullying complaints

Official statistics on workplace bullying in Australia are notoriously unreliable.  The Productivity Commission estimated the cost of workplace bullying with a huge margin of variation, between A$6 billion and A$36 billion annually.  WorkSafe Victoria has indicated in the past that the number of interventions on workplace bullying is way below the number of workplace bullying complaints.  On 29 October 2103, in a long discussion on workplace bullying the Australian Capital Territory’s Chief Minister, Katy Gallagher stated:

“According to reports from the Commissioner for Public Administration, reports of bullying and harassment have totalled 68 cases in 2010-11, 71 in 2011-12, and 118 cases in the financial year that has just passed, 2012-13. Proven cases of bullying have numbered four, eight 11 and 19 respectively. This amounts to complaints being made by 0.5 per cent of staff, and substantiated in relation to 0.08 per cent of staff.” (Hansard, page P3930, emphasis added)

These latest statistics, in conjunction with those previously reported, indicate that the perception of workplace bullying is much higher than the reality in Australia.   Continue reading “Fair Work Commission girds its loins for workplace bullying complaints”

Australia’s psychosocial barometer provides strong evidence for policy and corporate change

OnlineMBA.com recently uploaded a video about “The True Cost of a Bad Boss“.  It is a good summary of the spread of negative organisational and employee effects that can result from poor management  poor understanding and poor communication.  It is well worth remembering this spread when determining the best way to manage workplace safety and increase productivity.

Cover of The-Australian-Workplace-Barometer-reportAlthough the video is from the US, there is research evidence to support many of the points raised. In December 2012, Safe Work Australia released  The Australian Workplace Barometer Report On Psychosocial Safety Climate and Worker Health in Australia, a report that has been largely missed by the Australian media. The report says that:

“A standout finding here is that depression costs Australian employers approximately AUD$8 billion per annum as a result of sickness absence and presenteeism and AUD$693 million per annum of this is due to job strain and bullying.” (page 6)

This is a significant impact on Australian business costs and, if one takes the OnlineMBA information concerning bad bosses, Australian bosses may need to undertake a considerable amount of self-analysis when lobbying for red-tape reductions and calling for productivity increases. Continue reading “Australia’s psychosocial barometer provides strong evidence for policy and corporate change”

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