Safe Work Australia released its annual report and there were several key statistics to make note of relating to mental health claims. In this article, we will share these statistics, the potential implication of these and one strategy you can follow to prepare for this.
#1 – 14,600 mental health claims
This represented a 20% increase compared to the previous year. 10 years ago, that number was 7,200.
#2 – 5 times median time lost (37 weeks)
Mental health claims keep workers out for five times longer than any other injury or disease.
#3 – $65,400 median compensation
The median compensation claim is $65,400, which is just under $20,000 more than the next highest cost per claim.
Two key potential implications of this
- Increased compliance checks: It is natural to expect that as claims increase in a particular area, regulators will focus in on this area to assess if workplaces are managing these risks. This has also been confirmed by reports of a heightened focus on psychosocial risks over the coming years.
- The ripple effect: If employees see others successfully filing mental health claims, they may feel more comfortable or justified in making similar claims, creating a ripple effect. It is also possible there will be opportunistic people making claims to secure a settlement. The heightened awareness and openness around such issues can amplify the number of claims that are made.
The question you must ask yourself
How ready are we to defend our psychosocial risk management process?
A straightforward process to answer this question
I do believe that, when done well, a psychosocial risk assessment in consultation with workers can prevent claims. However, it can be hard to prove this. What I know to be true though, is the following:
- It is a legal requirement and,
- If your workplace is inspected or a claim is made, having this process in place will help you defend yourself against fines and large settlements.
Last year, Court Services Victoria was fined $380,000 and stated they failed to conduct a risk assessment (page 13). Below, we have put together a process you can follow to conduct a risk assessment in consultation with workers (click ‘Get started’):
We often hear that People & Safety teams are stretched trying to conduct psychosocial risk assessments. Workers are surveyed out and it is too complex to manage long term and learn a new system internally. There is an option to have an independent third party manage all of this for you. Please reach out to info@skodel.com if you are interested in hearing more about this.
