Mental Health in the Workplace: A Balanced Approach for Employers

Mental health is no longer a silent issue in workplaces—it’s an essential part of running a sustainable, productive, and positive business. In Australia, mental health challenges have been on the rise, and the impact is being felt across industries. According to the Australian Bureau of Statistics (ABS), around 44% of Australians will experience a mental health disorder at some point in their life, with one in five experiencing a condition in any given year.

For businesses, the costs of ignoring mental health are substantial. Work-related mental health conditions cost Australian employers over $10 billion per year in compensation claims, absenteeism, and lost productivity. A mentally healthy workplace is not only beneficial for employees—it’s also good for business.

But what does a proactive, balanced approach look like? How can small business owners and employers support mental well-being without making it a forced or uncomfortable topic?

The Impact of Mental Health on Business

Beyond the personal toll, mental health challenges impact businesses in several ways:

✅ Increased absenteeism – Employees may take more sick days due to stress or burnout.

✅ Presenteeism – Employees may show up to work but struggle to perform at their best.

✅ Higher turnover rates – A lack of mental health support can lead to employees leaving.

✅ Reduced productivity – Mental health struggles can impact decision-making, creativity, and focus.

✅ Increased compensation claims – Work-related mental health claims are rising, adding to employer costs.

The unseen can stack up

How Employers Can Support Mental Health

While awareness campaigns and posters are helpful, most employees prefer mental health support to be built into the workplace culture rather than being made a direct focus.

Here are some practical, subtle ways to create a mentally healthy workplace:

1. Encourage Proper Breaks & Work-Life Balance

• Lead by example—if you're a business owner, take proper lunch breaks and avoid sending emails after hours.

• Set clear expectations around working hours, especially for remote workers or tradies running their own schedules.

• Encourage employees to actually use their leave (many Australian workers don’t take enough holidays).

2. Create a Comfortable & Positive Work Environment

• Small changes make a big difference—access to natural light, comfortable workspaces, and even plants can improve well-being.

• If possible, allow flexibility—whether it’s remote work options, flexible hours, or small accommodations for individual needs.

3. Offer Support Without Making It Awkward

• Instead of direct conversations about mental health, frame discussions around energy, workload, or motivation (e.g., "How are you finding your workload?" rather than "Are you struggling?").

• Provide information about mental health services discreetly (e.g., include links in an internal email or workplace intranet).

• Promote Employee Assistance Programs (EAPs) where available—many workers are unaware these exist.

An informal coffee run can be a great way to 'check-in' with employees.

4. Build a Culture of Support & Teamwork

• Encourage casual social interactions—whether it's a Friday BBQ, a team coffee run, or a quick chat about weekend plans.

• If you’re a small business or sole trader, build a network of support around you—other business owners, networking groups, or industry peers.

• Tradies, in particular, often work solo or in small teams—creating informal check-ins or small team-building efforts can make a difference.

5. Reduce Workplace Stressors Where Possible

• Clear communication is key—many workplace stresses come from uncertainty or last-minute surprises.

• Help employees manage workloads effectively, rather than assuming they’ll "figure it out".

• For business owners, setting boundaries with clients can also reduce stress—not every email needs an instant reply.

Finding Support for Employers

For business owners, supporting mental health isn’t just about helping employees—it’s about protecting yourself as well. Running a business can be incredibly stressful, and many small business owners feel like they have to handle everything alone.

Here are some supports available for employers:

Resources &Support Services

• Beyond Blue’s Heads Up Program – Tailored mental health resources for workplaces (Heads Up).

• Fair Work Ombudsman – Guides on managing employee well-being (Fair Work).

• Black Dog Institute – Mental Health at Work – Training and resources for businesses (Black Dog Institute).

• Employee Assistance Programs (EAPs) – If your business has access to an EAP, remind staff it’s there.

Mental health in the workplace doesn’t have to be a big, forced discussion—small, everyday actions go a long way.

Mel