Research indicates that a significant proportion of Australian employees are experiencing work-related mental distress amid rising rates of burnout and psychological compensation claims. Nearly 59% of employees have faced mental distress linked to their jobs, with excessive workloads, frequent meetings, and strict deadlines cited as key contributors. Employees estimate that, on average, 3.31 hours each week are spent on tasks or meetings considered unnecessary, and 32% say they cannot take proper breaks due to continuous schedules.
In addition, almost 80% of surveyed employees and nearly two thirds of managers do not believe their organisation enforces good workplace habits or boundaries that might mitigate burnout. A relative increase of 28.4% in primary psychological workers’ compensation claims has been recorded between FY21 and FY25, with the average time off work per claim rising to 81 days in FY25.
The research highlights that 78% of managers see systemic hurdles to combating burnout, pointing to time and resource limitations, lack of suitable technology, and conflicting priorities as particular obstacles. Less than 40% of managers think their organisations enforce procedures that support healthy habits and work-life balance.
The data tells us that mental stress and work pressure is the second highest contributor of primary active psychological claims (34%). We are all on a journey and everyday we are learning more and more about supporting mental health in the workplace. While Allianz works to support injured workers who have been harmed by workplace stress, we recognise that the best outcomes are achieved through prevention. Through our insights, guides and other resources, we hope to positively contribute to creating more mentally healthy workplaces.
Financial pressures and outside-of-work responsibilities are compounding workplace distress for many employees. The survey found that 24% of employees say cost of living concerns and other financial strains affect their focus at work, while 19% reported technology makes it difficult to switch off at the end of the working day.
Work-life balance is further affected by domestic demands: 78% of employees revealed that household responsibilities are not shared equally, and 81% do not have a reliable support network to help with routine tasks like childcare or school drop-offs. Only 27% schedule regular personal time to maintain their wellbeing.
The findings coincide with a growing trend of employees considering seeking alternative employment, with 2.73 million Australians likely to consider leaving their jobs in the coming year. Employees are asking organisations for better training for managers in supporting wellbeing (36%), fewer unnecessary tasks and meetings (34%), and regular mental health days on a monthly or quarterly basis (30%).
Burnout looks differently, depending on the person, role or industry. But burnout certainly doesn’t have to be part of a job. It can be prevented when teams are checking in with each other on the right things and taking action early. Employees can start by recognising when their stress / recovery balance is off, which could feel like fatigue, overwhelm, irritability, or caring less about their work than usual. Speak up before things escalate and be specific about what’s making it harder to limit stress or recover well – whether it’s meeting overload, lack of breaks, unrealistic deadlines or inability to focus due to pressures outside the workplace. Ask for what you need, and use the support your workplace offers, like EAP Assist. Don’t underestimate the power of small changes: taking proper breaks, setting boundaries, and prioritising recovery activities like sleep and exercise can be enough to reset your stress / recovery balance, preventing burnout for good.
