The United Project's second Leaders Lunch for 2024 was held on 14 November at Norton Rose Fulbright. The event brought together senior executives for a crucial discussion on workplace mental health, organisational change, and leadership accountability.

The timing couldn't have been more relevant, as recent data reveals unprecedented challenges in workplace mental health.

The Growing Mental Health Crisis

The urgency of addressing workplace mental health has never been clearer. Australian research shows worker compensation claims due to mental stress continue to reach new highs, with each claim resulting in an average of 34.2 lost working weeks—more than four times the duration of other injuries and diseases. The median compensation paid per claim stands at $59,534, marking these as among the most costly workplace injuries.

Even more concerning is Allianz's 2024 recent report showing a 61% increase in psychological injury claims due to workplace harassment. The breakdown of claims reveals a clear pattern:

• Workplace harassment and bullying: 27.5%
• Work pressure: 25.2%
• Workplace violence: 16.4%

Support All Staff: From High Performers to Struggling Team Members

“As leaders, we often place all our energies and focus on the poor performers, laggards, and naysayers, but we also need to check in with the achievers and perfectionists to make sure that they are ok.”

A key theme emerged during the lunch: the importance of supporting mental health across the entire workforce.

Participants acknowledged that mental health challenges don't discriminate based on performance levels. High achievers, often perceived as resilient, may mask struggles while maintaining exceptional output. Meanwhile, team members experiencing difficulties might be dealing with temporary challenges that, with proper support, can be overcome.

The discussion highlighted that:

• High performance and mental health challenges aren't mutually exclusive.
• Top performers may face unique pressures that require specific support.
• Creating psychological safety benefits both struggling team members and high achievers.
• A supportive environment can help prevent high performers from burning out while enabling others to reach their potential.
  
  

Leadership Accountability & Legal Obligations 

During the lunch, discussions centred on the critical role of leadership in addressing these challenges. Under the Work Health and Safety Act's Positive Duty legislation, directors and executive leaders have specific obligations to protect their workers' psychological health.

Key leadership responsibilities include:

• Maintaining current knowledge of psychosocial work health and safety.
• Understanding operational psychosocial risks.
• Ensuring appropriate resources for risk elimination/minimisation.
• Implementing timely response procedures.
• Verifying compliance effectiveness.
  
  

Cultural Transformation in Action

The event highlighted successful approaches to cultural transformation, emphasising that high performance and positive mental health can—and must—coexist.

Participants shared insights on effective change management, including:

• Direct CEO and executive team involvement
• Data-driven methodologies
• Clear communication of the 'Why' behind changes, and
• Implementation of performance management programmes that equally weight both results and methods.

The group spent some time discussing the need for leadership accountability during change, while establishing an environment for ‘Fierce Conversations’, ensuring alignment in a safe and open way.

“Post training and after fully equipping leaders, they were held accountable through a carrot & stick performance management program… Where the ‘What’ and ‘How’ were equally important and measured and assessed accordingly. This initiative, plus the appointment of change champions across the global business, were key elements that moved the needle by reinforcing behaviours and removing obstacles. It also created quick wins plus continued the change momentum.”

The Business Case for Change

The financial implications are substantial: poor employee mental health costs Australian employers up to $70 billion annually in lost productivity, absenteeism, turnover, and healthcare expenses. However, the discussion revealed that organisations taking a systematic approach to mental health support are seeing significant returns through improved performance, innovation, and retention.

Creating an Environment for Excellence & Wellbeing

In their latest Indicators of a Thriving Workplace report, SuperFriend reports that one in three workers with lived experience of mental ill-health report unfair treatment in the workplace, while 22% withhold personal information fearing negative perceptions. These statistics highlight the critical need for environments where:

• High performance is celebrated alongside wellbeing.
• Support is available without stigma.
• Open dialogue about mental health is encouraged.
• Both personal and professional growth are valued.
  
  

A Call to Action

As leaders, we can no longer afford to view workplace mental health as separate from organisational performance. The path forward requires a holistic approach that supports all team members, regardless of their current performance or mental health status.

Consider these steps to transform your organisation

1. Through targeted research and analysis, evaluation your current psychological safety practices, behaviours and measures in line with the WHS Act and Positive Duty legislation.
2. Assess your organisation’s operating model to determine workplace hazards, risks and priorities.
3. Develop clear processes for addressing psychological risks.
4. Create leadership alignment around mental health initiatives.
5. Design a systematic approach to measuring and monitoring workplace mental health.
6. Openly encourage an environment where both high performance and wellbeing are celebrated.
7. Establish support systems that accommodate different needs across your workforce.
8. Train leaders to recognise and respond to mental health challenges at all performance levels.
9. Design and implement a new operating model that is wellbeing informed.
   
   

Looking Forward

The United Project Foundation will continue to lead crucial conversations about workplace transformation and is ready to support you.

Special thanks to Sally Capp AO for sharing her wise words and experiences, to Norton Rose Fulbright for hosting, and Amrop Carmichael Fisher for sponsoring this important event.

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