Comcare - Australian Goverment
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Health is a 21st century workplace challenge

Workforce health poses a critical risk for organisations. Today’s workforce operates in a broader context that creates significant challenges for employers. The following factors are important:

Chronic disease

Chronic disease is placing an increasing burden on health systems, taxes and costs of coverage, which increasingly burden organisations and their employees.

Productivity losses associated with workers with chronic disease include disability, unplanned absences, reduced workplace effectiveness, increased accidents, workers’ compensation claims and negative impacts on work quality or customer service. In Comcare’s scheme, claims with one or more weeks off work are now made up of injury and disease in equal proportion (for premium–paying scheme employers.)

Many common diseases are directly linked to lifestyle factors. Chronic disease can be prevented and its effects mitigated by changing lifestyle choices—such as maintaining a healthy weight and following a nutritional diet.

Sedentary work characterises many of our workplaces. This increases the risk of chronic disease among employees.

Ageing population

Our ageing population will result in a drain on trained and experienced resources as workers retire or see their health status reduced. Older workers are more likely to develop chronic health conditions that can result in early retirement or long-term disability.

Health promotion and wellness efforts are likely to keep older workers healthy longer by reducing health risks and avoiding or delaying new chronic conditions, or exacerbating existing ones.

Mental health

Mental health conditions are among the major causes of absence due to sickness and an inability to work. Some statistics in Australia include:

  • 20% of people will experience a mental illness during their lifetime
  • 10% will be affected by an anxiety disorder at some point
  • 3% of our population are affected by a psychotic illness such as schizophrenia
  • 7% will experience substance abuse disorders.

A variety of work factors can impact the mental health of employees.

Work can provide social interaction and a sense of belonging, which improve workers’ wellbeing. Poor health due to job stress is a major problem that is largely preventable. Employers have a major part to play here by identifying and addressing psychosocial risk factors and developing strategies to address them.

Staff involvement, enhanced job control, workload management, clear roles and policies to tackle bullying are all important. An inclusive work culture—one that is open to difference and accepting of health problems at work—has been shown to increase productivity, create greater trust and better align corporate and worker values.

Skills shortages

Skills shortages and an ageing workforce affect organisations. The long-term economic impact of chronic diseases and an ageing workforce will reduce the available labour supply, and productivity. Organisations that show they value people on a more personal level are more likely to attract, retain and motivate the right employees. Employees who are engaged are motivated to perform at their highest levels and commit discretionary time to the success of an organisation.

The case for work health

There are three good reasons for investing in work health:

It’s the law

Employers have a duty of care to ensure the health and safety of workers. This means reducing or completely eliminating any physical or psychosocial risks that could harm them.

Effective ways to do this include providing information, training, instruction or supervision, and monitoring the health of workers and conditions in the workplace. Employers need to talk to workers and find out where the problem areas are and, together, develop solutions to combat them.

Physical safety issues are usually easy to identify, but what are the psychosocial health risks workers face? Psychosocial hazards are those aspects of the design, organisation and management of work, and its social and environmental context, that can cause psychological, social or physical harm.

Psychological injury claims are a significant driver of workers’ compensation premiums and other costs for organisations.

It’s the right thing to do

The workplace plays an important part in combating the rise in chronic disease, improving social inclusion, and preventing needless disability. The workplace can affect the physical, mental, economic and social wellbeing of workers and therefore offers opportunities to improve employee health.

To realise the health benefits of work and accelerate the prevention of chronic disease, workplaces need to extend their agenda to include health and wellbeing.

PricewaterhouseCoopers talks about the ‘converging aims’ of employers, health system payers and individuals. This is evident in the Joint Statement of Commitment to Promoting Good Health at Work (insert link), a Healthy Workers’ Initiative that is being implemented under the National Partnership Agreement on Preventative Health.

It’s the smart thing to do

The workplace is affected by reduced productivity and increased costs caused by chronic disease. Wellness programs can improve performance and productivity and reduce indirect costs such as absenteeism and presenteeism, as well as investing in human capital and making the workplace attractive in a competitive labour market.

Healthy safe workplaces have a future because they can face change and adversity. They contribute to prosperity and a sustainable economy will create new opportunities. Businesses that protect worker health are also among the most successful over time.

‘A cultural shift is gradually occurring in Australia. Employers, health system payers and individuals are increasingly seeing the benefit of the workplace as a setting for optimising physical, psychological and social health.’
(PricewaterhouseCoopers 2010.)