Australian workplaces are experiencing persistent challenges related to employee mental health, according to new research from Allianz Australia.
The study indicates that a significant proportion of employees and managers are struggling with mental distress linked to their work environment.
Approximately 80% of employees and nearly two-thirds of managers surveyed expressed doubts that their organisations have effective policies or practices to prevent burnout.
Managers identified several barriers to addressing these issues, including insufficient time and resources, lack of appropriate technology, and competing business priorities.
The research found that nearly 60% of employees have encountered work-related mental health concerns, with the most common factors being excessive workload, frequent meetings, and tight deadlines.
On average, employees reported spending over three hours each week on tasks or meetings they considered non-essential, and about one-third said their schedules prevented them from taking adequate breaks.
Outside of work, technology was cited by 19% of respondents as a factor that makes it difficult to disconnect, while financial concerns and cost-of-living pressures were also reported as affecting concentration and performance.
The study estimates that over 2.7 million Australians are contemplating leaving their current jobs within the next year.
These workplace trends are mirrored in insurance data. Allianz Australia reported a 28.4% increase in primary psychological workers’ compensation claims from FY21 to FY25. The average duration of time off work per claim also rose by 10%, reaching 81 days.
Mark Pittman, executive general manager of personal injury at Allianz Australia, noted that mental stress and work pressure now represent the second largest category of active psychological claims.
“Our claims data tells us that mental stress and work pressure is the second highest contributor of primary active psychological claims (34%),” he said. “While Allianz works to support injured workers who have been harmed by workplace stress, we recognise that the best outcomes are achieved through prevention.”
The rise in mental health concerns has implications for the insurance industry as a whole. Government statistics show that nearly half of Australians between the ages of 16 and 85 have experienced a mental disorder, and this is reflected in increased claims across workers’ compensation, compulsory third party (CTP), public liability, and life insurance.
The Insurance Council of Australia (ICA) has highlighted the economic impact of mental illness, estimating the cost to the Australian economy at more than $200 billion annually, including lost productivity and insurance payouts.
The Council of Australian Life Insurers (CALI) reported that mental health now accounts for nearly one-third of all total and permanent disability (TPD) claims.
In 2024, life insurers paid over $2.2 billion in mental health-related claims, nearly double the amount paid five years earlier.
Income protection claims for mental health reached $887 million in the same year, and the rate of TPD claims among Australians in their 30s has increased by more than 700% over the past decade.
CALI CEO Christine Cupitt stated that the sector is seeing more Australians, especially younger people, leave the workforce permanently due to mental health conditions.
She noted that while TPD payments provide financial assistance, they may not ensure long-term security for younger claimants, and the industry is considering new ways to support customers facing mental health challenges.
In response to these findings, Allianz Australia has introduced resources aimed at helping organisations address burnout.
These include sector-specific guidelines and video tutorials for industries such as construction, education, healthcare, and professional services.
The company’s approach acknowledges that factors outside the workplace, such as financial stress, also play a role in employee wellbeing.
The research also highlighted that 73% of employees are unable to regularly schedule personal time, and a majority do not share household responsibilities equally.
Only a minority of managers believe their organisations are supportive of working parents and carers, and even fewer think employees feel comfortable raising concerns about discrimination related to family or caring duties.
Brianna Cattanach, national manager mental health strategy at Allianz Australia, said business leaders can help by designing jobs with manageable workloads and by establishing clear boundaries for after-hours work.
“This should be accompanied with manager training on how to set these healthy workforce habits, and respond with empathy to work-related burnout and mental distress. This was the most sought after measure that surveyed employees want their organisation to commit to,” she said.
Helen Lawson Williams, co-founder of the anti-burnout program TANK, added that burnout can be mitigated when teams communicate effectively and take early action.
“Employees can start by recognising when their stress/recovery balance is off, which could feel like fatigue, overwhelm, irritability, or caring less about their work than usual,” she said.
She encouraged employees to speak up about their needs and to make use of available support services.
Further information and resources for addressing workplace burnout are available through Allianz Australia’s “Unschedule the Burnout” initiative.
