Workplace depression is a widespread issue, with nearly half of all employees reporting that their job makes them feel depressed at least some of the time. A new study based on UK data, matching workers with their employers, reveals that managers play a critical role in either exacerbating or alleviating this problem.
The Scale of the Problem
Australia is facing a mental health crisis. The Productivity Commission estimates that mental health issues cost the country between A$200 billion and A$220 billion annually, equivalent to one-tenth of the nation's economic output. Job stress is a major contributor, affecting both physical and mental health. An Australian study using data from 2007 to 2021 found that employees experiencing moderate or high psychological distress took more sick leave, were less productive, and were more likely to be underemployed.
Safe Work Australia data from 2022–23 shows that work-related mental health problems kept employees off work five times longer—about 35 weeks—than the average for serious claims. Women are disproportionately affected compared to men.
Remote Work Not a Simple Solution
Contrary to expectations, working from home or hybrid arrangements do not appear to be a straightforward remedy. Recent post-pandemic Australian research found that employees working from home or in hybrid setups experienced more negative emotions, loneliness, depression, and anxiety.
Key Factors Behind Workplace Depression
The new research, surveying 20,000 employees, found that about 49% said their job made them feel depressed at least some of the time in the past few weeks. Key factors include job demands such as work pressure and insufficient time to complete tasks. Managers who overload workers and impose excessive pressure increase work-related depression. Australian research also identifies bureaucratic hassles, emotionally taxing work, and workplace conflict as additional job demands.
Fortunately, managers can also make things better. Greater autonomy—allowing employees to determine how to do their work, set start/finish times, choose tasks, control pace, and decide task order—is linked to less work-related depression. Autonomy enables employees to structure their workday to minimize negative impacts. However, this runs counter to the trend of higher-level management seeking more control and the growing use of remote monitoring software.
Support from managers and coworkers also improves mental health outcomes. Additionally, employees with greater job security report less work-related depression.
Implications for Workers
For workers, choosing an employer wisely is crucial, as it can impact health as well as income. While crowdsourced sites like Glassdoor offer some information, managerial practices are hard to observe from outside and can change. The researchers suggest mandatory reporting of psychosocial hazards—aspects of a workplace or its culture that can cause psychological or physical harm—similar to current gender pay gap reporting. Safe Work Australia already requires businesses to monitor and consult on psychosocial hazards; public reporting would create incentives for improvement and allow potential employees to make better choices. The spotlight on the gender pay gap has already helped narrow it in recent years.
Work Conditions Matter for Business
Managers must recognize that costly mental health problems are partly driven by their management practices and work conditions. Poor mental health outcomes hurt the bottom line. Australian businesses with employees who have better mental health are more productive. Moreover, workers' compensation costs are levied on businesses, reducing competitiveness.
Over the ten years to 2023–24, serious mental health compensation claims rose by 161% in Australia, the largest increase of any workplace injury. Safe Work Australia found that work pressure accounted for about 25% of serious mental stress claims, harassment/bullying for 33%, and exposure to violence and harassment for 16%. Management can potentially reduce all three.
Societal Costs
The costs of serious workplace mental health issues are borne by the community through lower productivity and strain on the public health system. Research suggests burnout not only affects the individual but also reduces spousal income and the education levels attained by their children. Improving management skills is in the national interest, as good management boosts profit and reduces public health costs.
If this article has raised issues for you, or if you're concerned about someone you know, call Lifeline on 13 11 14. For workplace trauma, abuse, or bullying, call 1800 RESPECT at 1800 737 732 or text 0458 737 732. 13YARN (13 92 76) is a free and confidential 24/7 crisis support line for Aboriginal and Torres Strait Islander people.
