Did you know that right now, almost half of your employees are likely to look for a new job in the next 12 months? And mental health has a huge role to play in this. As we approach World Mental Health Day on 10 October, it’s more important than ever for Australian business leaders to reflect on the wellbeing of their staff. Find out why your workers are feeling the strain and how surprising aspects such as pay gaps and a lack of engagement can affect their mental health. And, importantly, discover what you can do about it.
The state of mental health on World Mental Health Day 2023
According to the latest National Study of Mental Health and Wellbeing published by the Australian Bureau of Statistics, 43.7% of working-age Australians (or 8.6 million people) have experienced a mental disorder at some time in their life, with 21.4% (or 4.2 million people) suffering from a mental disorder lasting over 12 months. Long-term mental health disorders, notably anxiety, can affect relationships and functioning in the workplace.
The 2023 State of the Future of Work report found that many Australian workers are not only exhausted and time-poor but also have little opportunity for advancement – leading to a negative impact on their mental health. Although, according to Indeed Hiring Lab experts, the ‘Great Resignation’ is behind us, businesses may face declining productivity and high staff turnover rates if they do not attend to these issues.
World Mental Health Day is, therefore, a great opportunity for business leaders to bring attention to mental health in their organisation, and to actively seek out solutions.
Why exactly are your staff wanting to leave?
Before you can implement any strategies to retain your employees, it’s crucial to understand why they feel the need to leave in the first place.
In 2023, the rising cost of living is creating immense financial pressure for many workers, also affecting their mental health. Many are forced to seek out pay rises or look for a new job in order to be able to combat the pressures of inflation. In fact, Gallup's 2023 Global State of the Workplace report has found that a staggering 43% of Australian employees are currently watching for or actively looking for a new job opportunity. Notably, Australian workers also reported the second-highest percentage (47%!) of daily stress out of all survey respondents. This is no coincidence, as studies have repeatedly shown that high stress levels at work increase the risk of staff wanting to resign.
Another reason why some employees may want to leave their jobs is if they feel like they are being paid unfairly compared to their co-workers. In fact, studies have shown that Australia still has a gender pay gap of 13.3%, and in some sectors, certain workers are paid up to 38% less than their peers, with Aboriginal and Torres Strait Islander staff the most affected.
Finally, Gallup’s Global State of the Workplace report also found that 67% of Australian employees report not feeling engaged with their work. This is an issue because actively disengaged employees are 1.7 times as likely to be diagnosed with anxiety, and actively disengaged employees almost twice as likely as engaged employees to be diagnosed with depression.
How to keep your staff – and safeguard their wellbeing
Worryingly, a 2022 Deloitte survey found that executives tend to underestimate how much employees are struggling in terms of their physical and mental health. While 84% of leaders said they believed their employees’ mental wellbeing was good or excellent, for example, just 59% of employees shared this sentiment. This discrepancy suggests that leaders might be out of touch with how their workers are actually doing and might have some homework to do in this area.
The University of Melbourne Work Futures Hallmark Research Initiative makes it clear that workplaces must prioritise workers’ wellbeing to provide greater support in addressing burnout and mental distress.
Tackle pay gaps
Fair compensation is a cornerstone of employee wellbeing and retention. Before you do anything else, you may want to consider running a pay gap analysis in your organisation to determine the actual pay gaps you’re dealing with. Review pay data including each employee's gender, race or ethnicity, job title and salary. This is especially important because, from 2024, the Workplace Gender Equality Agency (WGEA) will publish the gender pay gap for employers with a workforce of 100 or more employees. WGEA is therefore actively encouraging employers to start conducting gender pay gap analyses and understand what’s driving the differences in their organisations.
What's more, once you’re armed with the facts, you can take systematic action. After all, pay transparency can be a crucial tool when it comes to addressing gender and diversity pay gaps. Shedding light on salary disparities can help identify and eliminate inequities, allowing you to ensure that your staff receive equal pay for the same work. This, in turn, will increase their sense of wellbeing and make them more likely to stay on.
Create a diverse and inclusive environment
Employee wellbeing and mental health are also affected by how safe and welcome staff feel at work. When your staff and managers can be who they are and don’t feel like they need to hide part of their personality, they will feel respected and more engaged. This will help boost your organisational success overall and keep your turnover rates low, thus saving you money.
Develop a workplace mental health strategy
The Black Dog Institute suggests that every company should have a mental health strategy in place as a matter of course. Yet, according to Indeed’s recent wellbeing survey, one-in-five (19%) workers said their organisation doesn’t offer any support to employees with mental health challenges or concerns. Perhaps it is not suprising then that a further two-in-five (42%) workers think their employer treats mental health and wellbeing as buzzwords, and only pay lip service to these important elements of a worker’s ability to perform in their job. As change starts from the top, leaders need to demonstrate positive behaviours and create a culture that is open and supportive. This will then guide the rest of the workplace.
A corporate mental health strategy would need to include relevant training for all staff as part of your professional development offering. Given that Indeed’s survey found two-in-three workers (60%) initially turn to their direct managers for support when experiencing mental health challenges, this will better equip them with the necessary skills and knowledge required to handle mental health conversations sensitively and effectively. You may also want to establish fixed meet-ups or social activities to allow your workers to connect with one another and build personal relationships.
Another important aspect is promoting the disclosure of mental health issues and encouraging staff to seek help. This can be done by normalising safe and respectful discussions about mental health in the workplace and sharing contact details of support workers, mental health counselling services or other resources.
In general, try to offer your staff flexible working arrangements and help them achieve a healthy work-life balance. All of this will help you support workers' mental health.
Make every day Mental Health Day
In October, World Mental Health Day once again reminds us of the mental health challenges faced by many Australian workers. Business leaders and executives are called upon to prioritise the wellbeing of their teams and ensure that their organisations are nurturing environments where their staff can thrive. In other words: you have the power to create a workplace where mental health is a priority every day, not just on 10 October. This can make a meaningful difference to the lives of your staff and your business as a whole.
