Nearly half of Australian workers would accept a pay cut for a job that was better for their mental health, a survey by claims manager EML has found.

And about one-third or respondents have left a job due to its impact on their mental wellbeing, according to the study of 4065 workers and 831 managers and leaders.

EML says it is the largest study of its kind examining mental health in Australian workplaces, and it reveals there is little difference in the views of workers and managers about the issue’s salience.

But despite improved understanding of the problem, most managers and leaders expect their organisations’ investments in mental health to be unchanged.

EML’s Daniel Walton says the findings underscore the hidden cost of psychosocial risk in the workplace, which is manifesting in claims, job retention rates and productivity.

Among workers surveyed, 40% have taken at least a day off in the past year for mental health reasons, but only 25% told their employer why.

About 45% do not feel comfortable disclosing a mental health condition to their employer, and 41% sometimes work while struggling because they feel they cannot take time off.

Only 29% would be likely to lodge a workers’ compensation claim if work seriously harmed their mental wellbeing.

Among managers and leaders, only 56% agree workloads are sustainable over the long term.

Mr Walton says greater understanding of the issue “is not translating into meaningful employer action. And while the consequences are genuinely toxic, they are also quite well disguised.

“Much of the discussion has been about front-line workers.

“And while it is undoubtedly a high priority, the research shows that what goes unrecognised is the burden carried by middle management, who are responsible for the mental health of others while carrying a huge amount of pressure themselves.”

Mr Walton says it is now well understood that “intelligent job design” can mitigate mental health risks, so employers must compete for talent in this area.

Find EML’s Mental Health Insights Report here.

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From the latest Insurance News magazine: A mental health check for the industry – see the results of our 2026 wellbeing survey

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