A study by the University of South Australia reveals ways the global economy could save in the billions of dollars lost annually in the workplace due to illness and injury.
Each year the global economy suffers billions of dollars in losses through employees missing work due to illness or injuries suffered while on the job. Investigative reporting published by Integrated Benefits Institute in December 2020 put the amount at $575 billion in the United States alone. But a recent study by researchers from the University of South Australia’s Psychosocial Safety Climate Global Observatory may offer businesses ways in which to cut losses, saving millions yearly—and it begins with realizing the importance of employee mental health.
The study, published in the September 2024 issue of Safety Science, lists psychosocial safety climate (PSC)—the atmosphere around workers’ mental health—as a leading indicator in organizational time loss and slower returns to work. Studies show that days lost in companies with low PSC (177) were 160% higher than days lost (68) in companies with high PSC. Further, monetary expenditures on health expenses were 104% higher in companies with low PSC.
“Our findings show that a healthy psychological climate in workplaces is essential if companies want to reduce working time loss and costs related to workplace injuries and illnesses,” said Maureen Dollard, ARC laureate professor and director of the PSC Observatory for the University of South Australia.
So what exactly is a healthy psychological climate? The National Association of Safety Professionals (NASP) defines psychosocial safety as “A management practice that prioritizes organizational policies, procedures, and practices to protect workers’ psychological health and safety.” And the organization holds that the PSC of any workplace is formed through a combination of management systems, management priority, organizational communication and organizational participation on all levels working together in promoting employee mental health and safety.
The better these elements work together, the higher the PSC.
Examples of unwanted elements that can bring down workplace PSC include excessive workloads, inadequate resources, poor management, ineffective communication and minimal recognition and reward.
NASP suggests common sense measures such as promoting self-awareness and trust, owning up to mistakes and avoiding blame casting, actively seeking feedback, and promoting positive discussions as ways in which a healthier work environment can be built and maintained, raising the PSC, leading to a more engaged, enthused workforce and reducing time lost.
