Work-related psychological strain is emerging as a significant issue for Australian employers and the workers’ compensation sector, with new research from Allianz Australia indicating that nearly two million employees often lose sleep because of job stress and pressure. The findings suggest a mismatch between growing corporate spending on wellbeing and how employees perceive their organisation’s efforts to prevent burnout.
Allianz’s survey shows that 74% of employees do not believe their organisation has clear initiatives and support in place to reduce burnout, despite an estimated $36.2 billion in planned spending on wellbeing and cultural initiatives over the next 12 months. About one in 10 organisations expects to allocate more than $100,000 to such programs this year. Surveyed workers indicated they are looking for changes that alter how work is structured rather than add-on wellness offerings. Forty-five per cent (45%) say they want access to mental health days or wellbeing leave. Another 31% want initiatives that reduce administrative or low-value work, including shorter meetings and tools that cut down on routine tasks. A further 35% would like better in-office benefits, such as coffee or lunches, largely to create social connection and breaks during the day. Almost one in five (18%) say they would be willing to trade part of their salary for flexible or hybrid work arrangements.
Brianna Cattanach, Allianz Australia’s national manager, mental health strategy – personal injury, commented: “We know organisations care deeply about their people, but there’s a clear opportunity for leaders to incorporate feedback from employees to improve their approach to workplace culture, job design, and support. It’s a critical time for Australian leaders and organisations to evaluate if their current wellbeing and cultural initiatives are positively impacting their employees. Our new research revealed that employees believe proactive mental health days, a greater focus on social connection and recovery opportunities, initiatives to address low value work, and a focus on leadership capability would most benefit their experience at work. By doubling down on the fundamentals of culture, job design, and capability, organisations can start to truly turn the dial on workplace burnout.”
The survey results are consistent with Allianz’s workers’ compensation data, which point to psychological injury as an increasing driver of claim volumes and costs. Between the 2024 and 2025 calendar years, Allianz recorded a relative 17.3% increase in primary psychological workers’ compensation claims. Of overall psychological claims, 42.3% were linked to mental stress and work pressure. Over the 2021 to 2025 financial years, primary psychological claims rose 28.4% across Allianz’s underwritten and managed fund portfolios. Average time off work for a primary psychological claim increased by 10% over that period, reaching 81 days in FY25. Allianz reports that mental health claims cost between 2.7 and 2.8 times more than physical injury claims, with an average cost of $46,143 per mental health claim in FY25.
The research frames burnout within a broader shift in how work and personal life intersect. The World Health Organization defines burnout as a syndrome resulting from chronic workplace stress that has not been successfully managed, typically involving exhaustion, mental distancing from work, and reduced professional efficacy. Allianz describes burnout as the outcome of prolonged stress that is not offset by adequate recovery. In this framing, work demands deplete personal resources over time, while rest and non-work activities replenish them. When recovery does not keep pace with demands, the balance moves toward exhaustion.
Survey responses suggest that work demands are interacting with pressures outside the workplace:
“Allianz’s research revealed that surveyed Australian employees felt that external pressures are affecting their ability to focus at work. We aim to support Australians and their workplaces to address and mitigate burnout by considering the full spectrum of responsibilities and activities that contribute to this experience,” Cattanach said.
The study identifies several industries with higher reported burnout indicators, which may be relevant for insurers and employers in assessing sector-specific risk. In construction, 25% of surveyed workers say they often make mistakes at work because they feel burnt out. In healthcare, 19% report feeling burnt out, and 43% say back-to-back schedules prevent them from taking proper breaks. Among education and academia workers, 26% say they feel burnt out, and 38% report they cannot take adequate breaks during the day. In professional services, 62% say they have experienced anxiety, burnout, or emotional exhaustion linked to work overload, including meeting volume and deadlines.
Allianz estimates that 2.73 million Australian workers are likely to consider leaving their jobs in the next year. Nearly six in 10 surveyed employees cite excessive workloads, constant meetings, and unrealistic timelines as key contributors to mental distress. Dr Helen Lawson Williams, co-founder of TANK and a collaborator on Allianz’s burnout research, said high contributors may need particular attention. “The causes of burnout are excessive stress and insufficient recovery… Your highest performers are often most at risk, because they care deeply and struggle to switch off,” she said.
When asked what would help, employees pointed to measures that sit within organisational control. Thirty-six per cent (36%) say improved manager training is important, including skills to recognise early signs of burnout and respond to concerns. Thirty-four per cent (34%) want fewer low-value tasks and meetings, estimating they spend more than three hours a week on activities they consider unnecessary. Thirty per cent (30%) support recurring mental health days embedded in policy as part of a broader approach to recovery. Nineteen per cent (19%) highlight the need for clearer expectations around after-hours use of technology. Seventy-three percent say they cannot regularly set aside time for themselves, underlining the influence of workload and scheduling on work-life balance. In response to these trends, Allianz has developed “Unschedule the Burnout,” a package of employer resources that includes video content and guidelines focused on psychosocial risk factors and recovery. The materials encourage organisations to review workload, time pressure, communication, autonomy, and perceived fairness as part of their risk management approach.
