Allianz wants a nationwide "workplace realignment" and mental health solutions for employees after a survey indicated widespread fatigue and burnout.

As many as 1.4 million Australians are set to quit, the survey found.

Allianz wants employers to better understand employee expectations and implement tailored mental health solutions, saying a "reset” is needed and managers must modernise their “monolithic” approach to mental health or risk losing staff.

Allianz Australia Personal Injury GM Julie Mitchell says a diverse, multigenerational workforce means effective mental health support is becoming more complex to deliver, and a disconnect between managers and employees at the root of the issue.

“This has a serious impact on workplace satisfaction and employee retention, and in turn, is continuing a worrying trend of increasing mental health claims in the workplace,” she said. 

"In the face of increasing complexity, and more generations working alongside each other, there is a real shift for organisations to respond to workplace mental health.” 

Employers must address changing staff expectations by “acknowledging their concerns and offering mental health and wellbeing programs aligned to expectations,” she said, listing engagement, culture, remuneration, career progression and retention as areas of focus. 

Allianz claims data shows a 46% increase in workers’ compensation volume since pre-covid, with the cost of claims up 36%. It shows a 39% increase in average days taken off work due to mental health in the last four years – equating to 76 work days off per claim in the year to June 30.

Across all portfolios over the past five financial years, psychological claims are more likely to experience time loss than physical claims, while payments to psychological claims are 2-7 times higher. Work-related harassment and work pressure are the main drivers.

“If changes aren't made, we're likely to see an increase in psychological injuries and ongoing employee turnover,” Ms Mitchell said. "We encourage organisations to think through practical solutions that can improve the mental health outcomes for their employees.”

An Allianz survey of 1500 employees and 521 managers found 33% reported fatigue and burnout, while almost a quarter felt they were underpaid and 35% said cost of living pressures were negatively impacting job satisfaction.

It found 28% felt exhausted by work, and for Gen Z that figure jumped to 40%.

Almost two thirds of surveyed employees felt negatively about their work, and almost one in five said they often have mental health challenges triggered by work. Yet of managers surveyed, 89% were satisfied with their organisation’s ability to create mentally healthy workplaces for employees. 

"While the majority of surveyed managers say their organisation has gone above and beyond to provide support and systems to create a mentally healthy workplace, just 33% employees share the same sentiment,” Allianz said.

Empathic and emotionally intelligent environments, adequate remuneration and clear processes and policies to communicate concerns were listed as measures staff want to drive improved mental health outcomes.

“Culture needs to shift,” Consultant Psychiatrist Mark Cross said. "It encompasses initiatives around employee engagement, culture, attraction and retention.”

Allianz’s “Workplace Realignment” plan makes many practical recommendations, including having discussions about anxiety about speaking up when faced with an issue at work, training for leaders, a diverse peer support network, regular check-ins, and anonymous reporting mechanisms. 

"Ensure employees feel relevant by developing their technological capabilities, ensure clear processes and policies are in place to communicate workplace concerns,” it says.

Leaders should address unconscious bias and develop a matrix for transparency around access to career opportunities, take emotional intelligence training, and use processes that are free from bias such as diverse interview panels.

Policies and processes should address challenges with burnout, ensure employees speak up if they are overwhelmed, address peaks in work, ensure workloads are achievable, and avoid work communication outside of agreed hours.

“Encourage open and safe dialogue with employees on what balance looks like for them,” Allianz says.