Australian workers face mounting burnout as mental distress rises
Research from Allianz Australia indicates that a significant proportion of Australian employees are experiencing work-related mental distress amid rising rates of burnout and psychological compensation claims.
Burnout concerns grow
According to the Allianz survey, 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.
Systemic barriers in the workplace
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.
Allianz Australia's Executive General Manager - Personal Injury, Mark Pittman, commented on the findings.
Our claims 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.
Factors outside work
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.
Pressure to leave and calls for change
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%).
Brianna Cattanach, National Manager Mental Health Strategy - Personal Injury, Allianz Australia, emphasised a comprehensive approach to workplace wellbeing.
Allianz is calling on Australian workplaces to take a holistic view of employee wellbeing. Business leaders can support this through job design that ensures; manageable workloads, a natural ebb and flow to work demands, adequate 'recovery' time during work hours and ground rules for disconnecting after-hours. This should be accompanied with manager training on how to set these healthy workforce habits, and respond with empathy to work-related burnout and mental distress. This was the most sought after measure that surveyed employees want their organisation to commit to.
Burnout prevention resources
Allianz has introduced a resource suite titled "Unschedule the Burnout" aimed at helping organisations prevent burnout, including industry-specific guidelines and video tutorials for a range of sectors such as construction, education, healthcare, and professional services. The resources address challenges from within and beyond the workplace, recognising external pressures as factors affecting mental wellbeing at work.
Helen Lawson Williams, co-founder of the anti-burnout program TANK, highlighted the need for preventative action at all workplace levels:
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 Employee Assistance Programme services. 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.
Mental health investment on the rise
Australian organisations collectively plan to invest approximately AUD $33.83 billion in mental health support services over the coming year, reflecting the mounting importance placed on workplace mental wellbeing. The research was conducted with a nationally representative sample of employees and managers, and the findings are being used to inform current industry practices.
