Indicators of a Thriving Workplace 2020

The impact of COVID-19 on Australian workers has been profound, according to Australia’s largest workplace mental health study.

• Three in five workers experienced a mental health condition this year (up almost 9 percentage points from 2019 to 59.5%)
• Over a quarter (27.8%) of workers who have experienced a mental health condition had their first experience during the pandemic
• Mental health concerns are the most common reason for lower productivity this year, affecting three in five workers (59.7%)
• At a national level more than half of workers (55.1%) report that no action is being taken in their workplace to address mental health
• COVID-19 has resulted in a better work-life balance for nearly half of Australia’s workforce (48.5%) and a range of mental and physical health benefits (44.5%)
• Information media and telecommunications is the most thriving industry in 2020 (score: 71.6 out of 100) followed by financial and insurance services (score: 67.6 out of 100)
• Transport, postal and warehousing has the highest proportion of workers experiencing stress (40.3%), followed by public administration and safety (37.9%) and retail trade (37.7%)

Australia’s largest workplace mental health study found that three in five workers experienced a mental health condition this year (up almost 9 percentage points from 2019), with many struggling for the first time during the pandemic.

The new research, released today by SuperFriend, also showed clear benefits of improved financial and mental health outcomes for workers at organisations that invest in mental health initiatives, but more than half of Australia's workers (55.1%) report their workplace is taking no action.

SuperFriend, the national mental health organisation that partners with the superannuation and insurance industries, surveyed 10,338 Australian workers for the annual Indicators of a Thriving Workplace study. The research, now in its sixth year, measures and tracks the current state of mental health and wellbeing in Australian workplaces against a desired state. This year the study also includes a strong focus on the impact of the COVID-19 pandemic on Australia’s workforce.

The 2020 national workplace mental health and wellbeing index score increased to 65.1 out of 100[1], after remaining steady for the previous two years at 62.7.

Commenting on the findings, SuperFriend CEO, Margo Lydon said: “The improvement in the overall score is surprising, but welcome news in these extraordinary times.

“Australia’s workplaces have moved closer to thriving over the last year. While this improvement may seem counter-intuitive during such turbulent times, it infers two things: work is generally good for our social connections and mental health, and long-term sustained efforts to improve workplace mental health are starting to gain traction.”

Unexpected COVID benefits: Connectedness, productivity, and access to leaders

The research found that Australian workers are feeling more connected than ever before, particularly in organisations where everyone worked remotely for at least a month since March 2020, compared to those who worked on-site (71.3 vs 67.6 out of 100).

There has also been a surprising increase in the number of people who have become more productive throughout this period (up 4pp from February to 29.4% in June). The most popular productivity boosters were identified as “Reduced commute to work” (38.4%), “More comfortable clothing” (31.3%) and “Flexible work hours” (29.4%).

“Who'd have thought a pandemic which introduced ‘social distancing’ as a behaviour norm would make us feel more connected at work?” Ms Lydon said.

“A key positive coming from this crisis is the surge in the sense of shared purpose. Workplaces are increasingly feeling like communities where people support each other beyond getting the job done.

“Time usually spent getting ready for work, commuting and attending unnecessary meetings is instead spent with loved ones, exercising, pursuing personal interests or getting more sleep – all known factors to improve wellbeing and increase productivity,” she added.

COVID-19 has “turbocharged leadership changes at Australian workplaces” according to Ms Lydon, particularly at organisations that are taking tangible action to improve workplace mental health and wellbeing. "We know that leaders' work and travel habits have shifted substantially in the wake of COVID-19, creating space and time for more accessibility, which also had a big impact."

Three in five employees (58.9%) working in action-oriented businesses confirmed that leadership has improved since March with leaders being more accessible when needed and acting as champions for their teams (versus 1.7% in less committed workplaces).

“For leaders, this is a fantastic opportunity to get to know their staff better, practice self-reflection, build resilience and trust to effectively reduce worker frustration and stress and create happier, healthier workplaces,” Ms Lydon added.

Concerning hot spots: Casual and insecure work and stigma

The Thriving Workplace research found that casual workers are the furthest from thriving, and that the gap has widened due to COVID-19. As an example, the culture index score was 66.0 for full-time workers, compared with only 62.0 for casuals. Casual workers also reported persistent declines in respect and inclusiveness over three consecutive years.

“This is hugely concerning” said to Ms Lydon. “Over the last few years of conducting this research, we have noticed a persistent decline in outcomes for casual workers and industries with higher casualised workforces. Casual workers have very little job security, and fewer opportunities to access workplace mental health programs and resources compared with their securely employed peers. Accommodation, food services and arts and recreation workers have been particularly hard hit because of this."

Further, while organisational supportiveness of employee mental health and wellbeing has improved since last year (up 8.8pp to 51.9%), stigma around other issues has emerged, such as physical health and racism.

6.6% of workers reported that they have experienced stigma around physical health issues (cold and flu symptoms) this year, and 5.1% experienced racism in the workplace. These workers also have overall thriving workplace scores that are well below the national average of 65.1 out of 100 (54.7 and 56.6, respectively).

“It’s encouraging to see there’s more support for workplace mental health, which may be partly due to an increased public dialogue about mental health and wellbeing since the beginning of the pandemic, and the elevated role work has played in people’s lives while other activities have been restricted.

"Some things have been really eye-opening, though, such as people having access to very basic things for the first time since COVID, like team meetings," she added.

Taking action is not a choice, but a necessity

According to the report, workplace commitment to improving workers’ mental health and wellbeing through tangible action has been particularly important this year, and more people reported their workplace took action compared with 2019.

The best industry for taking action was information media and telecommunications, and the worst ranked was transport, postal and warehousing.

Also, while ‘lack of time and commitment’ has tumbled as the most commonly perceived barrier preventing employers from investing in workplace mental health and wellbeing, ‘businesses facing more important issues / struggling to survive’ has emerged as the new biggest hurdle, especially for small businesses.

One in three workplaces (29.8%) have implemented new initiatives to support workers' mental health and wellbeing since March, such as paid mental health days off, sick pay for casual workers, meeting-free blocks and substantially longer break times.

However, more than half (55.1%) of workplaces are still not taking any tangible action, despite a stronger national focus and additional funding. These workplaces are missing out on huge benefits to their workforce and their business more broadly.

“Lost productivity due to mental ill-health is estimated to cost the Australian economy between $10-18[2] billion every year, but on the flip side, every dollar invested into workplace mental health is estimated to deliver a return on investment of 5:1[3].

“In light of this, taking action by investing in workplace mental health and wellbeing is not an optional extra, it’s a must have. With Australia’s increasing awareness of workplace mental health and its links to productivity, combined with our radically transformed ways of working, I hope this marks a positive tide of change." concluded Ms Lydon.

[1] An index score of 100 represents the desired state of mental health and wellbeing in the workplace

[2] Productivity Commission into Mental Health estimate using HILDA data, published October 2019, https://www.pc.gov.au/inquiries/completed/mental-health/draft#footnotes

[3] Mental health and employers; Refreshing the case for investment, January 2020 Deloitte UK, https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/consultancy/deloitte-uk-mental-health-and-employers.pdf