Nearly a third of Australian employees report a lack of compassion from their boss

• New research reveals Australian businesses plan to invest up to $27.8 billion in diversity and inclusion practices and mental health support over the next 12 months¹.
• Yet, nearly half of surveyed Australian employees claim they feel fatigued and burnt out². Over a third are considering leaving their current organisation in the next 6-12 months.
• Organisations are struggling to meet the individual needs and experiences of diverse employees. Nearly a third of all employees surveyed said they feel like their managers lack compassion³.
• Primary psychological Workers’ Compensation claims have nearly doubled over a five-year period⁴, according to latest Allianz data.

New research reveals Australian organisations are planning to invest $27.8 billion in diversity and inclusion practices and mental health support services over the next 12 months. This investment equates to an average of $38,771 per organisation surveyed. It shows that Australian businesses are aware of the importance of these issues.

Research by leading Workers’ Compensation insurer, Allianz Australia, revealed that this support is urgently required. It shows that nearly half of surveyed Australian employees (48%) claim they feel fatigued and burnt out in their current work environment. This is a significant increase on 2023 figures⁵. Over a third (36%) of surveyed Australian employees said they’re likely to consider leaving their current organisation in the next 6-12 months. That’s the equivalent of 2.7 million Australian workers nationwide⁶.

The research examined the experiences of workplace mental health and wellbeing by Australians. It particularly looked into diverse needs. This meant talking to people of different genders, generations, cultures, and physical abilities.

This research showed that improved support from organisations is required. Over a third (39%) of surveyed employees with a disability⁷ and two-in-five (42%) of surveyed employees who identify as neurodivergent⁸ said they have withheld information about their personal situation due to fear of being perceived poorly by their manager or organisation. With industry research demonstrating that a diverse workforce is associated with improved business outcomes⁹, it’s crucial that organisations focus on supporting all individuals regardless of their differences.

Core to these challenges is that nearly a third (31%) of surveyed employees reported feeling a lack of compassion from their manager towards their personal circumstances and how they impact their work. Over a quarter (28%) believe an unconscious bias¹⁰ exists from their managers regarding the perception of their ability to do their job effectively.

In fact, one in five (22%) surveyed employees with a disability have felt excluded due to their personal situation or characteristics. Furthermore, female employees are more likely than male employees to have withheld information about their personal situation due to the fear of being perceived poorly by their manager or organisation¹¹.

Acknowledging employee concerns, a quarter of surveyed managers (25%) believe there’s an ‘empathy gap’ in their workplace, where workplace challenges aren’t handled with the level of care necessary for all employees. Nearly half (45%) agree they may have an unconscious bias – or unintentional bias or prejudice - towards their team.

Cost of living is having a direct impact on employee sentiment towards work. Nearly half (46%) of surveyed Australian employees say cost of living pressures are negatively impacting their job satisfaction. This was over not being adequately rewarded at work (33%) and mismanaged staff shortages resulting in an increased workload for the individual (25%).

The friction caused by economic pressures and internal employee wellbeing challenges can naturally lead to mental health challenges. Hence, work needs to be done to deliver effective workplace mental health support for a diverse range of needs. The findings come as new Allianz psychological Workers’ Compensation claims continue to spike. There has been a 47.5% increase in active claim volumes, and a 30% increase in the number of days off, due to mental health over the last five years¹².

Julie Mitchell, Chief General Manager of Personal Injury, Allianz Australia said, “Diversity and inclusion is so important within the workforce. It not only benefits individuals but also their teams, the organisation and society more broadly and at Allianz we believe in the benefits of a diverse and inclusive workplace that gives fair and equitable opportunities to all employees.

As well as creating a workplace that is diverse, employers need to focus on developing a culture whereby employees feel psychologically safe and that they can bring their best selves to work. Psychological safety is a shared belief by team members that it’s OK to express their ideas, concerns and questions – and to take risks and admit mistakes – without fear of negative consequences.

Our research demonstrates how vital it is for organisations to understand the needs of all Australians participating in the workplace and adopt a proactive approach to mental health support. Only by doing so can organisations take advantage of a more productive and successful workforce.”

The majority of managers surveyed (85%) believe they show empathy or compassion to their team regarding their personal circumstances and how they impact their ability to do their job effectively. However, less than half of employees (46%) share the same sentiment.

Despite this, both employees and managers agree that more action can be taken within their workplace to support the mental health needs of employees¹³. Further, one in five (21%) surveyed managers say their organisation is taking steps to address unconscious bias in their workplace.

Dr Sarah Cotton, organisational psychologist and Co-Director of Transitioning Well says, “Through our work, it’s clear that managers are navigating a highly complex working environment, amongst a diverse workforce that is calling for workplaces to embrace the whole person.

“It’s critical that organisations view their people as more than just workers and take the time to truly understand the often messy intersections between life and work in order to provide tailored support in meaningful and holistic ways.”

The surveyed Australian employees were asked what their ideal diverse workforce looks like. Fourty three percent 43% described a place where they feel they belong no matter their personal experiences and characteristics. Fourty one percent 41% said it’s where they can bring their whole self to work and be accepted and celebrated for who they are.

Specifically, surveyed employees called for improved opportunities for open and transparent conversations about individual workplace needs (39%). This was alongside clear communication channels to voice workplace concerns (39%) as the top measures they’d like to see their organisation commit to in order to improve support for diverse needs in the workplace.

Julie Mitchell continued, “The business case for diversity, equity and inclusion is stronger than ever before and employees who feel respected and valued develop stronger relationships and become more engaged in their work.

“By leading with empathy and inclusion, managers can create an emotionally intelligent and safe space for all employees, no matter their gender, generation, cultural background or experiences of disability or neurodiversity. Only by doing so will they reap the benefits of the new workforce including increased productivity, creativity, improved decision-making and much more.”

For more information on how you can close the empathy gap and create more mentally healthy workplaces, visit the Allianz Mental Health Hub. 

The research was commissioned by Allianz and conducted by YouGov in accordance with the Australian Polling Council standard. The survey is a nationally representative sample comprised of 1613 employees (middle managers and below) and 513 managers (senior managers and above) in Australia, aged 18 years and older. This study was conducted online between 24 April 2024 and 6 May 2024. Following the completion of interviewing, the data was weighted by age, gender and region to reflect the latest ABS population estimates.

Allianz defines neurodivergence as the natural variation in how our brains work and process information. It includes conditions such as autism, ADHD, dyslexia, and more.

Allianz defines ‘disability’ when used for employment-related purposes based on the Australian Bureau of Statistics’ Survey of Disability, Ageing and Carers. Persons are considered to have a disability if they have a limitation, restriction or impairment, which has lasted, or is likely to last, for at least six months and restricts everyday activities. This includes:

• Sensory
  • Loss of sight (not corrected by glasses or contact lenses)
  • Loss of hearing where communication is restricted, or an aid to assist with, or substitute for, hearing is used
  • Speech difficulties 
• Intellectual
  • Difficulty learning or understanding things. 
• Physical
  • Shortness of breath or breathing difficulties that restrict everyday activities
  • Blackouts, seizures or loss of consciousness
  • Chronic or recurrent pain or discomfort that restricts everyday activities
  • Incomplete use of arms or fingers
  • Difficulty gripping or holding things
  • Incomplete use of feet or legs
  • Restriction in physical activities or in doing physical work
  • Disfigurement or deformity.
• Psychosocial
  • Nervous or emotional condition that restricts everyday activities
  • Mental illness or condition requiring help or supervision
  • Memory problems or periods of confusion that restrict everyday activities
  • Social or behavioural difficulties that restrict everyday activities.
• Head injury
  • Head injury, stroke or other acquired brain injury, with long-term effects that restrict everyday activities.
• Other
  • Receiving treatment or medication for any other long-term conditions or ailments and still restricted in everyday activities
  • Any other long-term conditions resulting in a restriction in everyday activities

Survey participants were asked to self-categorise both their disability and neurodivergence status.

1. The research suggests that Australian businesses are planning on investing a total of $27.8 billion in diversity and inclusion practices and mental health support services over the next 12 months, an average of $38,770 per organisation surveyed. Managers were asked how much money (AUD) their organisation planned to invest, with the mean and total figures reported here.
2.  48% of surveyed Australian employees claim they feel fatigued and burnt out in their current work environment.
3. 31% of surveyed employees state their managers lack empathy or compassion towards their personal circumstances and how they impact their ability to do their job effectively.
4. According to Allianz Workers Compensation data, primary psychological workers’ compensation active claim volumes have increased 47.5% from 2019 to 2023. The average cost of primary mental health Workers’ Compensation active claims have increased 29.2% from 2019 to 2023.
5. 38% in 2023
6. Figure has been extrapolated from the percentage of surveyed employees who stated they are likely to consider leaving their current organisation in the next 6-12 months.
7. Allianz defines ‘disability’ when used for employment-related purposes based on the Australian Bureau of Statistics’ Survey of Disability, Ageing and Carers.
8. Allianz defines neurodivergence as the natural variation in how our brains work and process information. It includes conditions such as autism, ADHD, dyslexia, and more.
9. According to the Diversity Council Australia Business case for D&I
10. Allianz defines unconscious bias as unintentional biases or prejudices that influence decisions and actions based on factors like race, gender, age, etc.
11. 24% vs. 19%
12. According to Allianz Workers Compensation data, primary psychological workers’ compensation active claim volumes have increased 47.5% from 2019 to 2023. Primary Psych Workers' Compensation active claims were responsible for around 655K employee leave days in 2023, a 30% increase in average days off work for primary psychological claims from 2019 to 2023.
13. 26% and 25% respectively.