Mentally Healthy Workplaces

Mental health isn’t just a personal matter—it’s a workplace game-changer. We’re not perfect—we’re human, just like you—and we’ve seen firsthand how workplaces can lift us up or wear us down. In Australia, where 1 in 5 people grapple with a mental health condition each year (AIHW, 2020), the stakes are real. Untreated mental health issues cost Aussie businesses up to $10.9 billion annually in lost productivity, absenteeism, and staff churn (PwC, 2014), with more recent estimates pushing upwards of $20 billion (HRM Online, 2024). That’s not just a number—it’s a signal that we need to act. When employees feel supported, they bring their whole selves to work: engaged, creative, and ready to connect. So, how do you build a workplace where mental health thrives, no matter the size of your team? Let’s dive into why it matters, how to make it happen, and what it means for Australian businesses like yours.

Why Mental Health Matters in Australian Workplaces

Here’s the truth: a mentally healthy workplace isn’t a luxury—it’s a necessity. In Australia, approximately 7,230 workers’ compensation claims are paid each year for severe work-related mental health conditions, with 93% tied to psychological distress (Safe Work Australia, 2021). That’s thousands of people—maybe someone on your team—facing burnout, anxiety, depression, and worse, because of workplace pressures. But it’s not just about avoiding the downside. Some estimates show that businesses that invest in mental health see a return of $2.30 for every $1 spent – thanks to happier, more productive teams (PwC, 2014). Employees who feel supported are 2.5 times more likely to stick around, and teams with high psychological safety—where people can speak up without fear—are 50% more effective (Harvard Business Review, 2017).

Think about a tradie pushing through stress to meet a deadline, or a retail worker juggling long shifts with family life, study, and cost of living pressures. When they’re supported, they don’t just survive—they thrive. Ignoring mental health, on the other hand, can erode morale, spike sick days, and send your best people out the door. In a country where 83% of workers report feeling stressed at work (Australian Psychological Society, 2022), creating a supportive environment isn’t just smart—it’s urgent. 

Four Practical Strategies to Kick Things Off

You don’t need a massive budget or a complete overhaul to get started—just a commitment to your people. Let’s explore some ways to make it happen.

First, start by offering mental health days. These are dedicated days off for employees to recharge, separate from sick leave, and may drop absenteeism by 20% in six months (Deloitte, 2020). It’s a small step that says, “We see you, and we’ve got your back.” 

Next, think about training managers to spot signs of distress—like someone pulling back from team chats or missing deadlines—and respond with care. Research shows trained managers can cut workplace stress by 20% (Dimoff & Kelloway, 2019). A simple “How are you holding up?” can open the door to real support. This kind of training comes with massive benefits.

Encouraging open conversations is another winner. Normalize mental health talks with casual check-ins or workshops. Evidence suggests that starting monthly “mental health huddles” can increase team trust by 15% within a year (CIPD, 2022). It’s about breaking the silence in a way that feels natural, not forced. 

Finally, promote work-life balance with flexible hours or hybrid setups. The Australian Psychological Society found that 95% of workers value employers who respect their boundaries (APS, 2023). Give your team room to breathe, and they’ll bring more energy to the table.

The Power of EAPs: A Lifeline for Your Team

One of the smartest moves you can make is providing access to counseling for your team members through Employee Assistance Programs (EAPs). These programs offer free, confidential support for anything from workplace stress to personal challenges—think of them as a safety net that catches people before they fall too far. The business covers the expense, so that employees can seek support without worrying about the financial hit. In Australia, EAPs are a lifeline: with 7,230 mental health-related compensation claims each year (Safe Work Australia, 2021), early support can stop small struggles from becoming big ones, and all the challenges that stem from there.

EAPs aren’t just a nice-to-have—they’re a practical tool tailored to Aussie workplaces. They connect employees with counselors and psychologists who get the local context, whether it’s the pressure of a FIFO roster in WA or the grind of a corporate gig in Sydney. Unlike private therapy, which can cost $250-$350 a session and take weeks to book, EAPs are free and fast—often available within 48 hours (EAPA, 2021). Confidentiality is a big deal too: 90% of users trust that EAPs won’t spill to their boss (EAPA, 2021), which matters in Australia’s tight-knit work culture. 

But here’s the catch—only 5% of employees use EAPs, often because they don’t know they’re available (Spill, 2024). That’s where you come in. Promote them loud and clear. Share a story—like how a manager in Perth used an EAP to tackle burnout—and make access straightforward with a quick link or phone number. Keep the messaging stigma-free: “It’s there if you need it, no judgment.” Tailor your EAP to your team’s needs too. Look for providers offering neurodiversity support—like help for ADHD or autism in the workplace—or a focus on performance psychology to boost focus and resilience, taking evidence-based approaches to building performance for the long term. It’s about meeting people where they’re at, and supporting them to grow and remain well and connected.

Managers can lead the charge here. If you’ve used the EAP yourself, say so—it’s a powerful way to show it’s okay. As an example, if a Sydney CEO shared their EAP story in a team meeting, EAP usage may shoot up by 30% in a month (PeopleSense, 2023). Even better, weave EAPs into your culture. Add EAP info to onboarding packs and you’re likely to see engagement rise (Mental Health Foundation, 2020). Make it part of the furniture—normal, accessible, and human.

Here’s a real-world twist: men in Australia are less likely to use EAPs. That’s a challenge worth tackling. Frame it as a practical tool, not a “feelings fix”—think “a mental health toolbox” or “mental fitness” rather than “therapy”. Male uptake of EAP has been shown to double in three months with these tweaks to language (EAPA, 2022). Small tweaks like these can make EAPs work for everyone – because we all need mental and psychological support, not just some of us.

If you’re interested in setting up an EAP for your workplace, reach out to a psychology practice in your area who you trust. Check out their websites to see if they offer EAP, seek feedback from others who may have built an EAP before, and call or email practices to see what they can offer you. Building a trusting relationship with this psychology practice will be crucial to the success of your EAP – so look for experience, expertise, and a variety of counsellors and psychologists within the team who can be matched to the diversity of your employees. 

(And as an aside – we at Sydney City Psychology offer EAPs to businesses of all sizes, with years of experience and a focus on performance and neurodiversity principles that can be applied as needed).

Tips for Managers: Supporting Your Team Every Day With Conversations

Managers, you’re the heartbeat of this effort. You don’t need to be a therapist—just a human who cares. Start by learning the signs of distress. If someone’s quieter than usual, snapping over small things, or missing deadlines, it might be more than a bad day. A casual “How’s your workload feeling?” can spark a conversation. Don’t push—just listen. With 83% of Aussie workers feeling stressed (APS, 2022), you’re not imagining it.

When it’s time to talk, keep it simple. Try, “I’ve noticed you seem a bit off—want to chat about it?” If they’re not ready, that’s fine—let them know support’s there when they are. If it feels right, point them to the EAP. Know how it works: “It’s free, confidential, and they get what work stress is like—worth a shot.” One team leader called it “a stress-busting shortcut,” and half their team gave it a go within weeks (Converge International, 2023).

Follow up without hovering. A week later, ask, “How’s that project going? Need a hand?” It shows you’re in their corner, not checking boxes. And don’t stop at one chat—build a rhythm of checking in. A weekly “quick catch-ups” initiative can increase team morale by 12% (Deloitte, 2022). It’s about connection, not control. You can’t solve everything, but you can listen.

What You Gain Long-Term

This isn’t just about dodging costs—it’s about building something lasting. Mentally healthy workplaces spark engagement. When the workplace is mentally healthy, people stop quiet quitting and start sharing big ideas. Training managers on mental health can increase employee satisfaction by 15% and reduce staff turnover by 10% within a year (Mental Health Foundation, 2020). Customers noticed too—happier staff meant better service.

Even small wins add up. Starting regular mental health check-ins can improve retention by 12% (Deloitte, 2022). It’s proof that caring pays off, no matter your size. When people feel seen, they stay—and they shine. In a country where mental health awareness is growing (think campaigns like R U OK? Day) businesses that step up, stand out.

Tailoring It to Your Business Size

Every workplace is different, but the principles hold. Here’s how to make it fit.

For small teams, keep it simple. Offer mental health days and talk up your EAP. A startup with 10 staff shared EAP details over a team lunch, and usage doubled in a month (Life Sherpa, 2023). It’s low effort, high impact. Medium-sized businesses can take it further. Train managers and weave mental health into regular chats. Running a six-month mental health program saw productivity jump by 20% in one example (CIPD, 2022). It’s about building habits.

Large organizations need scale. Embed mental health into your culture with workshops and policies. Consistency turns intent into action. Whatever your size, start where you are—every step counts.

Let’s Get Started Together

Creating a mentally healthy workplace isn’t a solo mission—it’s a team effort. We’re here to help with workshops tailored to your needs, from manager training to wellbeing strategies, as well as to offer EAPs that fit your needs. Want to see how this can work for your business? Get in touch with Sydney City Psychology today. Let’s build a workplace where everyone thrives—because when people feel supported, the possibilities are endless.