Statistics relating to the increase in psychological injury-based workers compensation claims bear witness to what most employers report anecdotally – that employee claims of bullying and harassment continue to rise at significant rates, and stress related absences often feel unsolvable. In broad terms, reports such as that released by Safe Work Australia in 2024 demonstrate that psychological injury claims:
account for around 9% of all serious workers compensation claims;
have increased by around 37% since 2017-2018;
have a median compensation payment that is four times greater than physical injuries; and
have significantly poorer outcomes with respect to return to work (some statistics suggest only half of employees with psychological injuries will return to work within one year, compared to around 95% of employees with physical injuries).
The pressures these claims have placed on workers compensation schemes in recent years have given rise to an increased focus on the elimination and control of psychosocial risks in the workplace. Most recently they have also seen a failed attempt by the NSW Government to introduce reforms that would have required claimants to first obtain a finding of bullying or harassment from the NSW Industrial Relations Commission, before being permitted to proceed with a workers compensation claim.
Irrespective of how workers compensation schemes look to manage the challenge, it’s clear employers will continue to be a primary focal point.
So how do employers make meaningful change? The causes of psychological injuries are complex, but our own experiences provide three clear, cultural guideposts:
Be clear and consistent about what ‘Good’ looks like: You don’t get a second chance at a first impression, so it is critical that new employees understand organisation expectations around performance and behaviour from day one. With that groundwork laid, it then becomes the daily mission to ensure that employee’s lived experience within the organisation does not undermine the stated expectations.
Manage performance, daily: Perhaps the most common risk point for allegations of bullying is performance-based discussions. This most commonly occurs where the discussion turns to managing an individual’s poor performance. This risk can be effectively reduced by managing performance daily. By doing that, we:
Are usually managing performance, not poor performance.
Remove (or at least minimise) the emotional response caused by a conversation about performance which otherwise only occurs when there’s a problem.
Remove (or at least minimise) the space for misalignment between a manager’s and individual’s perspective about actual performance.
Create a space for nuanced discussions around fluctuations in performance.
Create a safe space for personal accountability, and for learning from mistakes.
Empower and support managers to manage.
Of course, ensuring our managers are appropriately trained, and supported through effective systems, is critical to their ability to deliver on this.
Address poor behaviours quickly: Irrespective of whether they are personal in nature or work related, poor behaviours are toxic to workplace culture. A failure to deliver on managerial basics creates an environment where the key drivers of psychosocial risk (such as poor communication, poor work and time management, and divergent expectations) grow. By actively and promptly addressing poor behaviours (including poor managerial behaviours), we also align with external legal expectations in the growing sphere of positive duties.
All of this comes back to a central point – our organisation’s culture is critical. Importantly, that’s not necessarily determined by the values we pick and self-promote, but it’s certainly determined by the values our people live and experience as their daily reality.
