June 2025
Mental health in the workplace is squarely in the spotlight, given figures show rising workers’ compensation claims due top sychological injury.
In NSW alone, psychological injury claims have doubled in six years. These claims now make up 12 per cent of total workers compensation claims. The average cost of a psychological injury claim has also increased, rising from $146,000 in 2019-20 to$288, 542 in 2024-25.
There are plenty of steps small business employers can take to protect their staff’s mental health, including taking regularbreaks to model healthy behaviours.
Aside from scheduling regular downtime, Steadfast Technical Broking Manager Annette O’Brien suggests small businesses draw on a range of tools to support staff mental health.
“Make sure staff are aware of any Employee Assistance Programs they can access. Recognise initiatives like R U OK Day and make sure staff understand the resources and procedures that can provide support. There are other things employers can do such as setting examples so employees don’t feel they have to work for long hours under intense pressure, which can lead to burnout and employees leaving their jobs,” she says.
An Employee Assistance Program (EAP) can be a confidential, cost-effective service small businesses can offer employees. It might include free short-term counselling and practical support for stress, financial pressures or family issues via phone or online platforms.
Designed to boost workplace productivity and morale, EAPs can connect staff with local mental health services and providers, helping employers foster resilience in often tight-knit small business teams.
It’s also important for small business owners to recognise some workers compensation claims that involve psychological injury can be very sensitive. Think about investing in specialist training to ensure you can support your staff in this way if they are experiencing mental health challenges.
There are plenty of other ways to model healthy boundaries in the workplace. As the business owner, it’s a good idea to publicise your leave dates in team calendars.
Delegating work to others while you’re away also shows staff it’s ok to completely clock off for a period. You can indicate this in your out-of-office email by naming your second in command as the go-to person while you’re away. Make sure they have the bandwidth to do this and that you’re not just loading them up with extra work.
Taking a proper holiday isn’t self-indulgent, it’s a way of showing leadership.
Talk to your Steadfast broker today to find out more about how the workers compensation system works, and the insurance you need.
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