Nearly half of Australian workers would be willing to accept a pay reduction to improve their mental health, according to a recent survey involving more than 4,000 employees. The study revealed significant mental health challenges in the workplace, with two in five workers taking at least one day off in the past year due to mental health reasons.
Among the 4,065 respondents, approximately one-third reported having left a job because of its negative impact on their mental well-being. Additionally, 25 percent said they seriously contemplated quitting their current position within the previous 12 months due to mental health pressures.
Despite the prevalence of mental health-related absence, only about 25 percent of those who took time off disclosed the true reason to their employer. Nearly half of all workers surveyed expressed discomfort discussing mental health issues with management.
The research, conducted by personal injury claims manager EML, also surveyed 831 managers and leaders. Just over half of these leaders (56 percent) believed organizational workloads were sustainable in the long term. Less than half felt effective systems were in place to identify and manage psychosocial hazards, and only 21 percent were aware of a formal psychosocial risk assessment conducted within the past year.
When asked about future investment in mental health initiatives, 58 percent of managers anticipated no change, while only 20 percent expected increases. The survey also highlighted that a higher proportion of managers—20 percent—reported frequently losing sleep over work matters, compared with 14 percent of non-managerial employees.
Data from Safe Work Australia underscores the economic impact of workplace mental health issues. Mental health conditions accounted for 12 percent of serious compensation claims last year, representing about 17,900 cases that involved at least one week away from work. Compensation related to mental health claims was notably higher, with a median payout of $68,600—more than four times the median for other serious workplace claims.
Daniel Walton, group executive at EML and former Australian Workers Union national secretary, emphasized the often-overlooked burden faced by middle managers, who juggle their own mental health challenges while supporting their teams. He suggested that the complexity of addressing workplace mental health may contribute to a lack of decisive action, but that meaningful improvements could start with relatively simple measures.
“Granting as much autonomy and control as practical is pivotal,” Walton said. “Simply asking people in regular catch-ups whether they have the knowledge and the resources to succeed, and whether their work feels meaningful, can make a real difference.”
Walton noted the survey did not specify the amount of pay workers were willing to sacrifice for better mental health but indicated that EML plans to explore this in future research. He expressed surprise at the proportion of workers ready to accept a pay cut, interpreting it as a strong indicator of the increasing value placed on mental health in workplaces across Australia and globally.