A recent article in the Daily Telegraph shared some claims from iCare boss Richard Harding, Saying mental health workers compensation claims are growing by 13 to 17% per year. In his words mental health is going to become the “single greatest workplace issue” over the coming years.

What he doesn’t share in the article, is that the average mental health related workers compensation claim in terms of time off work is 26 weeks. That is more than the average spinal cord related claim. So we have an increase in the number of claims as well as an extension in time off work. 

For NSW businesses who have an annual workers compensation premium of more than $30,000 per annum better stand up and take notice.  These businesses are known as claims sensitive businesses meaning that they premium is adjusted in response to any claims.

So what are some of the tools in the toolkit in order to manage this issue?

One of the first things we discuss with claim sensitive clients is to review their current workers compensation policy. Over the years we have developed a network of insurance brokers who have demonstrated an ability in many cases to help reduce the premium paid. Of course, this is just a Band-Aid solution to fixing the problem and tells him address the symptoms. However, if you would like us to refer you um to a competent insurance broker, please reach out to us by visiting our website at ondemanndhr.com.au.

Next, we often have discussions with clients around challenging claims where appropriate very early in the piece. Typically, you have 7 to 10 days in order to challenge a claim before it is provisionally accepted and after this, it is very difficult to challenge a claim. We are not saying here that businesses should challenge claims that a genuine, however as part of the NSW workers compensation legislation claims cannot be made against the business in response to genuine performance management processes. 

Finally, one of the key inclusions in On Demand HR’s membership is access to an employee assistance program. Providing employees access to this has been demonstrated overtime to genuinely assist them in a confidential manner with any work or personal issues that they’re facing. On the one hand this is the right thing to do for businesses but the byproduct is that has a positive effect on reducing mental health related workers compensation claims and all the other associated challenges and costs for businesses with these claims.

If you would like to have a chat with one of our team about managing mental health claims within your business or any other HR or workplace relations matter, play keep watching to hear from some of the On Demand HR consultants who will share details of our free HR consultation and strategic action plan.