New research reveals Australian organisations are planning to invest $27.8 billion in diversity and inclusion practices and mental health support services over the next 12 months. The investment, which equates to an average of $38,771 per organisation surveyed, demonstrates an awareness of the importance of these issues by Australian businesses.
This support is urgently required, as the research by leading Workers’ Compensation insurer, Allianz Australia, revealed that nearly half of surveyed Australian employees (48 per cent) claim they feel fatigued and burnt out in their current work environment – a significant increase on 2023 figures [5]. Over a third (36 per cent) of surveyed Australian employees say they are likely to consider leaving their current organisation in the next 6-12 months, the equivalent of 2.7 million Aussies [6].
The research examined the experiences of workplace mental health and wellbeing by Australians, particularly looking into the diverse needs of the community from the perspective of gender, generational, cultural, neurodiversity, or people living with a disability.
Improved support from organisations is required, as over a third (39 per cent) of surveyed employees with a disability [7] and two-in-five (42 per cent) of surveyed employees who identify as neurodivergent [8] say they have withheld information about their personal situation due to fear of being perceived poorly by their manager or organisation. With industry research demonstrating that a diverse workforce is associated with improved business outcomes [9], it’s crucial that organisations focus on supporting all individuals regardless of their differences.
Introducing the empathy gap
Core to these challenges is that nearly a third (31 per cent) of surveyed employees reported feeling a lack of compassion from their manager towards their personal circumstances and how they impact at work and over a quarter (28 per cent) believe an unconscious bias [10] exists from their managers regarding the perception of their ability to do their job effectively.
In fact, one in five (22 per cent) surveyed employees with a disability have felt excluded due to their personal situation or characteristics, while female employees are more likely than male employees to have withheld information about their personal situation due to the fear of being perceived poorly by their manager or organisation [11].
Acknowledging employee concerns, a quarter of surveyed managers (25 per cent) believe there is an ‘empathy gap’ in their workplace, where workplace challenges are not handled with the level of care necessary for all employees, and nearly half (45 per cent) agree they may have an unconscious bias – or unintentional bias or prejudice – towards their team.
Increased economic pressures
Cost of living is having a direct impact on employee sentiment towards work, as nearly half (46 per cent) of surveyed Australian employees say cost of living pressures are negatively impacting their job satisfaction, over not being adequately rewarded at work (33 per cent) and mismanaged staff shortages resulting in an increased workload for the individual (25 per cent).
The friction caused by economic pressures and internal employee wellbeing challenges can naturally lead to mental health challenges, and hence work needs to be done to deliver effective workplace mental health support for a diverse range of needs. The findings come as new Allianz psychological Workers’ Compensation claims continue to spike, with a 47.5 per cent increase in active claim volumes and a 30 per cent increase in the number of days off due to mental health over the last five years [12].
Julie Mitchell, Chief General Manager of Personal Injury, Allianz Australia said, “Diversity and inclusion is so important within the workforce. It not only benefits individuals but also their teams, the organisation and society more broadly and at Allianz we believe in the benefits of a diverse and inclusive workplace that gives fair and equitable opportunities to all employees.
As well as creating a workplace that is diverse, employers need to focus on developing a culture whereby employees feel psychologically safe and that they can bring their best selves to work. Psychological safety is a shared belief by team members that it’s OK to express their ideas, concerns and questions – and to take risks and admit mistakes – without fear of negative consequences.
Our research demonstrates how vital it is for organisations to understand the needs of all Australians participating in the workplace and adopt a proactive approach to mental health support. Only by doing so can organisations take advantage of a more productive and successful workforce.”
While the majority of managers surveyed (85 per cent) believe they show empathy and/or compassion to their team regarding their personal circumstances and how they impact their ability to do their job effectively, less than half of employees (46 per cent) share the same sentiment.
Despite that, both employees and managers agree that more action can be taken within their workplace to support the mental health needs of employees [13]. Further, one in five (21 per cent) surveyed managers say their organisation is taking steps to address unconscious bias in their workplace.
Dr Sarah Cotton, organisational psychologist and Co-Director of Transitioning Well says, “Through our work, it is clear that managers are navigating a highly complex working environment, amongst a diverse workforce that is calling for workplaces to embrace the whole person.
“It is critical that organisations view their people as more than just workers and take the time to truly understand the often messy intersections between life and work in order to provide tailored support in meaningful and holistic ways.”
When asked what their ideal diverse workforce looks like, surveyed Australian employees described a place where they feel they belong no matter their personal experiences and characteristics (43 per cent), and where they can bring their whole self to work and be accepted and celebrated for who they are (41 per cent).
Specifically, surveyed employees called for improved opportunities for open and transparent conversations about individual workplace needs (39 per cent), alongside clear communication channels to voice workplace concerns (39 per cent) as the top measures they’d like to see their organisation commit to in order to improve support for diverse needs in the workplace.
Julie Mitchell continued, “The business case for diversity, equity and inclusion is stronger than ever before and employees who feel respected and valued develop stronger relationships and become more engaged in their work.
“By leading with empathy and inclusion, managers can create an emotionally intelligent and safe space for all employees, no matter their gender, generation, cultural background or experience of disability or neurodiversity. Only by doing so will they reap the benefits of the new workforce including increased productivity, creativity, improved decision-making and much more.”
