SafeWork NSW Targeting Psychologically Unsafe Workplaces

SafeWork NSW’s strategy for psychosocial health and safety reveals a 30% rise in mental health compensation claims between 2018-19 and 2022-23. This is despite significant expenditure in the awareness and education over the previous 4 years as part of the Mentally Healthy Workplaces Strategy. The strategy highlights though much work has been done the cost of psychologically unsafe workplaces to NSW is estimated at $2.8 billion. The department’s focus for the next 4 years is enforcing compliance in high-risk and large businesses and agencies, with a target to increase planned inspector compliance visits by 25% per year until 2026.

Key Statistics from the Strategy

Having a mentally healthy workplace is the second most important consideration for job seekers deciding to take a new role.

• 91% of Australian employees believe mental health in the workplace is important
• Despite this progress, psychological injuries continue to rise in number and severity. NSW data shows that psychological claims rose 30% between financial years 2018–19 and 2022–23, compared with 11% for physical claims.
• In 2022, 28% of workers experienced a mental health condition. That is more than one in four workers
• The average yearly cost to businesses of presenteeism, where workers attend work under stress or experiencing mental health issues, is estimated at $1,680 per employee. The annual cost of absenteeism, where employees are away from work due to mental ill-health, is an estimated $825 per employee

The cost of psychologically unsafe workplaces to NSW is $2.8B

• There are other related costs to businesses such as increased staff turnover and reduced productivity and quality while they recruit, train and up-skill new staff.

Planned Actions

Safe Work NSW plans to inspector compliance visits by 25% per year between 2023 to 2026, This includes inspectors completing Psychosocial WHS Checks when visiting any businesses or agency with two hundred or more workers.

If these organisations have not taken appropriate action in consultation with workers to comply with WHS legislation, SafeWork NSW will take regulatory action as appropriate. This action can include improvement notices through to prosecution for workplaces that repeatedly do not comply or where they have seriously breached WHS laws.

SafeWork NSW’s latest report highlights the departments focus on compliance in high-risk and large businesses and agencies. It has identified a number of high risk workplaces that consistently have high levels of psychological injury.

• Public Administration and Safety
• Education and Training
• Healthcare and Social Assistance.

What Does it Mean for Businesses

The Psychological Health and Safety strategy 2024-2026 demonstrates a strong commitment to by the regulator to reducing improving safety at work for individuals and reducing the cost of psychological injuries to both business and NSW government.

Business that have been avoiding the conversation about psychosocial risks in the workplace due to a fear that if employees were to voice concerns, they would be opening a Pandora’s box, are now at risk. With a growing number of incidents now finding there way into the mainstream media sphere you need to be on the front foot with talking with your team about these hazards and working collaboratively to resolve any issues.

Those industries at high risk are on notice to demonstrate a commitment to workplace safety, and incorporate systems for psychosocial hazard reporting and management of these risks.

The time to take action is now. Foremind has developed a unique approach that provides an integrated psychosocial safety solution; global safety culture surveys, incident management system, training and proactive mental health support all in one place. Read our article in the AICD Company Director Magazine for more information.

Invest in the creation of a psychologically safe workplace today, and reap the rewards tomorrow.

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Help is always available

Here are some useful resources for more help – for you and for your team:

• Lifeline – 13 11 14 and https://www.lifeline.org.au/ – offers fee, confidential, 24/7 telephone crisis support and lots of info and resources on their website
• Beyond Blue – https://www.beyondblue.org.au/ – info and support about mental health and suicide prevention
• Heads Up – https://www.headsup.org.au/ – the part of Beyond Blue that is specially developed for mental health in the workplace

This post has discussed challenging topics, which can be confronting for particular readers. If you need support, please feel free to contact Lifeline on 13 11 14 or 000 if you need immediate help to stay safe.

Find out more about how Foremind is making access to mental health mainstream for workers and supporting companies manage their Psychosocial Hazard compliance!