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Managing Your Team's Mental Health Guide

A practical guide to supporting your team's mental health at work

Pubished 
April 8, 2026

What's in this guide?

A practical overview of the mental health landscape facing Australian business leaders in 2026 — covering the real cost of mental ill-health (spoiler: it's more than you think), your legal obligations under psychosocial hazard legislation, and three concrete starting points for getting it right.

Includes data on workers compensation claims, productivity loss, and retention costs, plus a plain-English breakdown of what an EAP actually is and what to look for in one.

Written for HR managers and business leaders who know mental health matters but aren't sure where their obligations start and end.

How to use this guide

Use it as a reset. If your current approach is a phone number on the staffroom wall and an annual reminder email, this guide will show you exactly what's missing — and what it's costing you.

Share it with your leadership team or board when you need to make the case for investment.

The cost data on pages 2 and 3 does that work for you. Use the three starting points at the end as a practical checklist for where to focus first.

Why managing your team's mental health matters

Most business leaders know poor mental health affects performance. Fewer understand the actual dollar figure sitting behind it.

Mental ill-health costs Australian businesses an estimated $5,260 per employee per year in lost productivity, absenteeism, and presenteeism.

For a team of 20, that's over $100,000 leaving your bottom line annually — before a single workers compensation claim is lodged.

When claims do come in, mental health incidents average $45,900 each. That's five times the cost of a physical injury claim, with a median time off of 27 weeks compared to 7 for a serious physical claim.

Mental health claims are forecast to make up half of all compensation costs within seven years.

Then there's the legislation. Psychosocial hazard regulations now apply in every state and territory. Directors and PCBUs are personally liable for the management of psychosocial risk.

This isn't optional wellness spend — it's a legal obligation with penalties in the hundreds of thousands of dollars for businesses that can't demonstrate they're managing it.

The good news: businesses that get this right see measurable gains in retention, productivity, and claims reduction. The guide shows you how to start.

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Answers to the frequently asked questions.

Email us at enquiries@foremind.com.au and we'll get back to you  quickly with a response

Yes, we have culturally competent counsellors available, including those able to work with first nation and CALD employees.

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