Workers in the financial services sector are seeing the highest proportion of workers’ compensation claims for psychological costs.
According to research by Allianz Australia which surveyed over 2,000 employees, 80 per cent of expenses claimed by workers in the finance and insurance sector are related to psychological costs.
The research surveyed 20 different industries for the research.
Around a third of employees in banking and insurance say fatigue and burnout is negatively impacting their job satisfaction and 20 per cent say they feel underpaid at work.
Speaking to Money Management, Julie Mitchell, chief general manager for personal injury at Allianz, said: “This is a continuation of a trend we have seen for a few years now. There are definitely opportunities for the financial services sector to make some change.
“Our data also shows that when we see a psychological claim, we also measure people who have a physical injury with secondary psychological overlay and the cost for the financial services sector is higher than we see for other industries.
“If people lodge a claim, it is likely to mean they will be away from work for a longer period of time and that’s the primary driver of those costs being higher – reimbursement of wages. There’s not only the human element but also the financial element.”
As to why the financial services sector experienced such volumes, she said: “The sector does have a lot of customer interaction and a lot of work volume so being aware of those inputs of workload is really important for financial services organisations to consider.”
Across all sectors surveyed, Allianz said there has been a 46 per cent increase in active psychological claims and a 36 per cent increase in costs since pre-pandemic times, primarily driven by work pressures.
Over a quarter of surveyed employees said they have felt exhausted when it comes to work over the last 12 months, 63 per cent say they have felt negatively about their work over the last 12 months and 19 per cent said their work has triggered mental health challenges.
Psychological workers’ compensation active claims are responsible for around 69 employee leave days per claim, a 39 per cent increase in the average days taken off work for mental health reasons in the last four years.
Some 41 per cent said they are likely to consider leaving their current organisation in the next six to 12 months.
In light of the findings, Allianz Australia is urging workplaces to take employee mental health seriously and better understand the expectations of their employees in a post-pandemic world and how these marry up with the support they provide as a workplace.
This includes being aware of the wider elements impacting employee sentiment and mental health at work, and effectively implementing a modern approach to workplace mental health.
Much has been written about how the financial services and financial advice have seen increased problems and higher stress levels in recent years as they navigate compliance, regulatory and educational changes as a result of the Hayne royal commission.
A study by Forte Asset Solutions and Philippa Hunt in May 2022 of almost 700 advisers found 95 per cent said their stress levels had slightly or significantly increased, and 87 per cent said their mental health had significantly or slightly declined.
Some 18 per cent said they were on medication compared to 7 per cent prior to the royal commission, and more than 20 per cent said they had entertained thoughts of self-harm.
An earlier paper from e-lab’s Dr Adam Fraser and Deakin University’s Dr John Molineux in June 2021 found over 40 per cent were considering leaving the profession due to stress, and advisers reported poorer mental health and wellbeing, higher stress levels and higher feelings of overload than other professions.
If you are affected by problems mentioned in this article, please contact Lifeline on 13 11 14.
