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Mental health absences surge in Aussie SMBs

Australian workplaces have recorded the highest increase in mental health-related absences globally, according to new research from Peninsula Australia. 

The research was conducted by the global HR, employment law and health and safety consultancy across its client base in Australia, New Zealand, the UK, Ireland and Canada.

Surveying Peninsula Australia’s client base of 30,500 small to medium-sized business owners in Australia, the survey finds that 33% of surveyed Australian employers had observed an increase in sickness absences due to mental health over the past year.

Over half of the Australian employers surveyed (51%) also report an increase in the number of staff experiencing mental health challenges at in the workplace.

Support needed

Despite these shifts, formal support measures are still evolving.

72% of surveyed employers said they don’t currently offer dedicated mental health days and have no plans to introduce it in the next 12 months. Meanwhile, one in six surveyed employers provide mental health leave outside of annual entitlements, and just 39% have an Employee Assistance Program (EAP) in place.

Kayleigh Frost, Associate Director of Operations at Wisdom Wellbeing ANZ, Peninsula Australia’s Employee Assistance Program provider, says these findings mirror what her team is witnessing on the ground across frontline support services.

“There is a clear shift in awareness around mental health across our workforce. The conversations are becoming more open, and the demand for support is rising,” she says.

“In the past year, we have seen a 222% increase in calls to our EAP and a 128% increase in referrals for structured counselling. Mental health concerns now account for nearly a third of all calls. The volume and urgency we are hearing on the helpline paint a very real picture of a rising need.”

Ms Frost notes that the majority of these calls are coming from women (63.6%), particularly those between the ages of 30 and 39.

“We often talk about resilience and wellbeing in the abstract, but the numbers show us where the pressure points are,” she says.

“With 76% of [surveyed] employers not confident their staff would feel safe speaking up about mental health, there is still a culture of silence we need to break.” 

Good intentions

Encouragingly, 68% of surveyed Australian employers now offer some form of mental health support. Compared to their global counterparts, they are leading in their intentions to invest in manager and employee trainings, EAP access, mental health days and flexible work.

Ms Frost says this progress is welcome and ongoing.

“We are seeing more businesses engaging with mental health as a workplace issues, and many are starting to take steps to support their teams,” she says.

“At the same time, there is still a gap between what is currently offered and what employees may need. The increase in calls to our support line shows that more people are reaching out, and it reinforces the need for sustainable support.

“Support needs to be accessible and meaningful, not a tick-the-box exercise. Poor mental health is estimated to cost Australian employers approximately $11.5 billion a year. We cannot afford for mental health to be the thing that is talked about in policy but missed in practice. The opportunity lies in translating this awareness into consistent and tangible support for employees.”

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