Importance of Mental Health At Work
Find out why mental health at work matters and is key to business success today.
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In Australia’s business community, the spotlight on mental health has never been brighter. Beyond mere productivity metrics, fostering a mentally healthy workplace is proving crucial for organisational resilience and employee wellbeing.
From reducing absenteeism to enhancing creativity and collaboration, prioritising mental health isn’t just beneficial for businesses— it’s essential.
Job seekers are looking for organisations that prioritise worker mental health and wellbeing as they recognise that worker wellbeing reflects a bigger picture of a people-first workplace culture.
But more broadly, what impact does mental health have at work, and how can businesses take proactive steps to implement a supportive work environment?
Changing Perspectives on Mental Health in Australia
In Australia, there has been a significant shift in how mental health is viewed within workplaces. Once considered a taboo subject, mental health is now recognised as integral to overall wellbeing and organisational success.
This evolution acknowledges that supporting mental health not only enhances employee morale and productivity but also contributes to a healthier workplace culture.
UTS’s 2017 Mentally Healthy Workplaces in NSW: A Return-On-Investment Study found that mental ill-health was prevalent among workers.
It also demonstrated that organisations prioritising mental health initiatives saw a positive return of investment of nearly 4:1 as well as experienced reduced absenteeism, higher employee engagement, and improved performance outcomes.
Impact of Mental Health on Work
Maintaining good mental health is pivotal for enhancing job performance in numerous ways. Employees with robust mental wellbeing are better equipped to handle workplace stressors, exhibit higher levels of resilience, and consistently perform at optimal levels.
They demonstrate greater adaptability, creativity, and problem-solving abilities, contributing positively to team dynamics and overall organisational goals. Employees also experience improved overall wellbeing, which positively impacts their personal and professional lives.
Employers benefit from reduced absenteeism and lower turnover rates when mental health is prioritised.
Effects of Poor Mental Health on Work
Conversely, poor mental health can significantly impair an individual’s ability to thrive in a professional setting. Here are several detrimental effects:
1. Lack of Engagement
Employees experiencing mental health challenges may disengage from their work. This disengagement often manifests as a noticeable drop in motivation, where tasks that once seemed manageable or even enjoyable now feel burdensome.
The employee might struggle to find the energy or focus to complete assignments, leading to a decline in overall performance. Over time, this lack of engagement can result in a sense of detachment from the job, reducing their commitment to both individual tasks and broader team goals.
This could be a result of a number of psychosocial hazards like lack of role clarity, lack of employee recognition or remote and isolated work.
2. Reduced Productivity and Job Performance
When employees experience mental health issues such as anxiety or depression, it can significantly impact their ability to perform at work.
These conditions often impair cognitive functions, making it challenging to concentrate on tasks, organise priorities, and stay productive.
Simple tasks can become overwhelming, and complex projects may feel unmanageable. This decline in mental clarity and focus can lead to mistakes, missed deadlines, and a general reduction in the quality of work.
Over time, this can affect the employee’s overall job performance and contribute to feelings of frustration and inadequacy.
3. Impaired Physical Capability and Daily Functioning
Mental health problems can manifest physically, affecting energy levels, sleep patterns, and overall physical health. This can impact an employee’s ability to perform daily tasks effectively.
4. Poor Decision-Making
When someone is dealing with mental health challenges, their ability to make sound decisions can be compromised.
Anxiety, depression, or stress can cloud judgment, leading to impulsive actions or, conversely, a paralyzing indecisiveness. This impaired decision-making can result in choices that are not well thought out, potentially leading to negative consequences in the workplace.
Whether it’s rushing into a decision without fully considering the implications or hesitating too long to make a crucial call, the outcomes can undermine both individual and team success.
Implementing Mental Health Initiatives At Work
Addressing these challenges through proactive mental health support initiatives is crucial for fostering a positive work environment where employees can thrive both personally and professionally.
Importance of clear policies addressing mental health issues
Clear and comprehensive policies addressing mental health are essential for creating a supportive workplace environment.
These policies outline expectations, procedures for addressing mental health concerns, and mechanisms for seeking support.
They not only demonstrate a business’s commitment to employee wellbeing but also provide clarity on how mental health issues will be managed within the workplace.
Reducing stigma
Redefining mental health in the workplace involves transforming organisational approaches to prioritise employee wellbeing. This shift includes destigmatising mental health discussions, promoting open dialogue, and fostering a supportive culture where employees feel safe addressing their mental health needs without fear of judgment.
Ensuring that employees have access to both confidential EAP services and the ability to anonymously report mental hazards in the workplace, is critical to minimising potentially stigmatising situations.
Employee Assistance Programs (EAPs) and their benefits
Employee Assistance Programs (EAPs) are confidential, employer-sponsored programs designed to provide employees with professional assistance for personal issues, including mental health challenges.
EAPs offer counselling services, referrals to mental health professionals, and resources for managing stress, grief, and other personal challenges.
By offering accessible and confidential support, EAPs contribute to early intervention and the prevention of more serious mental health issues among employees.
Upskilling leaders on mental health
Employers can enhance mental health awareness and support by implementing training programs for managers. Managers are often the first point of contact for employees experiencing challenges, making it essential for managers to receive training on recognising signs of distress, initiating supportive conversations, and referring employees to appropriate resources.
Importance of ongoing evaluation and adaptation
Continuous evaluation of mental health programs is vital to ensure they meet evolving workplace challenges. Gathering employee feedback and using data-driven insights help organisations refine strategies, identify gaps, and introduce new initiatives. This approach demonstrates a commitment to employee well-being and a responsive organisational culture.
For more information on how you can support a healthy workplace that supports employee mental health, talk to our team today.
Related Content
- Identifying Psychosocial Hazards
- Mental Health Statistics in Construction
- Preventing Employee Burnout
- What Are The Benefits of EAPs?
Answers to the frequently asked questions.
Our last EAP was barely touched. Why would this be different?+
Most EAPs go unused because of how they're accessed, not because staff don't need them. Phoning a stranger, explaining yourself, then waiting weeks is enough to stop most people before they start. Foremind removes all three steps: staff see real counsellor profiles, pick someone themselves, and book the same day.
If you already have a provider, the question worth asking is what your current utilisation is. Most traditional EAPs sit in low single digits, which means you're paying for cover your people aren't reaching. If yours is being used, staff can get seen quickly, and it covers your psychosocial obligations, there's no reason to move. If not, it's worth knowing what you're getting for the spend.
Do you offer 24/7 support?+
Yes. A 24/7 after-hours crisis line means staff can reach someone immediately at any hour, including nights and weekends.
Counselling appointments are also available outside standard business hours, so shift-based and on-call teams aren't limited to a nine-to-five window. Those are two different things, and it's worth checking any provider offers both rather than just the crisis line.
Are your EAP counsellors based in Australia?+
Yes. Every practitioner on the platform holds current membership with an Australian professional body and practises under Australian standards, codes of ethics and disciplinary frameworks. There are no offshore call centres.
Practitioners hold membership with the Australian Counselling Association, the Psychotherapy and Counselling Federation of Australia, or the Australian Association of Social Workers, along with a current Working with Children or Vulnerable People Check.
How much does an EAP cost?+
Pricing is usually per employee per month, based on total headcount rather than how many people use the service. Costs vary widely depending on whether sessions are bundled in and whether compliance tooling is included.
A more useful comparison is cost per employee who actually uses it. An EAP with 2% utilisation can work out several times more expensive per person helped than one that gets used. Foremind offers pay-as-you-go, inclusive session plans and compliance-inclusive plans, with discounted pricing for not-for-profits and charities.
For full breakdown of our plans, see our EAP pricing page or request a quote for a tailored proposal.
What information does an employer receive about EAP usage?+
Nothing that could identify anyone. All counselling is completely confidential and all reporting is anonymous - you'll never see who booked, when, or what was discussed.
What you do see is the aggregated picture: how many people are using it, what psychosocial risks are prevalent in the business, and which teams are under pressure. Enough to know the investment is working and where to act, never enough to identify a person. Reporting thresholds mean small teams can't be reverse-engineered from the data.
Does having an EAP meet an employer's psychosocial duty of care?+
No. An EAP is a control measure, and a valuable one, but it only addresses harm after it has occurred. It doesn't identify hazards, assess risk, or evidence that controls are working.
Australian WHS law requires you to identify psychosocial hazards, assess the risk, control it so far as is reasonably practicable, and review whether those controls are working — with documented evidence at each step. Offering counselling on its own leaves three of those four steps undocumented.
Foremind covers both in one platform. See how the compliance side works in our product tour.