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Smart businesses are tackling psychological injuries before they start.

Before ANZ Bank employee Michael Smith committed suicide in 2000, he had been battling depression. The depression was triggered by the slog of trying to meet difficult sales targets, and workplace stress was identified as the main factor that contributed to his suicide, according to the coroner's report. The coroner ruled the bank was not responsible for the death but he recommended the bank consider how to handle a similar case differently.

The issue of psychological injuries in the workplace continues to create headaches for businesses. While the brunt of work-related injuries are physical ones, WorkSafe Victoria's 2007/2008 Statistical Summary shows stress injury claims rose from 1937 between 1999-2000 to 2520 between 2007-2008. In NSW, WorkCover figures show 2573 people lodged mental disorder claims between 2006-2007 (the latest figures) compared with 1682 between 1998-1999.

According to WorkSafe spokesman Michael Birt, a growing number of organisations are starting to understand the threat psychological injuries pose to staff and business.

"Many places are taking steps to build better systems to try to minimise the problem," he says. "It's affecting people at senior levels and ... junior levels as well."

The 2004 Occupational Health and Safety Act Review, conducted by Chris Maxwell, QC, for the Victorian Government, details a variety of factors such as bullying in the workplace, the intensity of work and the quantity of work hours which contribute to workplace stress claims.

Rachel Clements, co-owner and principal organisational psychologist at the Centre for Corporate Health, says the number-one reason employees take time off work is because of issues with their managers. Clements says conflict among colleagues is also a big cause of workplace stress but employers who recruit wisely stand to reduce the incidence of claims.

"You might have two people who are exposed to the same work situation. One will be fine and the other might put in a claim and go off work. That's to do with the injured worker's emotional resilience and their level of skills.

"The pre-disposing personality factors and the general skills to cope with workplace demands are big factors that make people vulnerable to stress."

Council of Small Business of Australia (COSBOA) chairman Richard Brooks says the small business environment creates stresses different from those encountered in major corporations. The global financial crisis means small business is faced with the stress of clients paying slower, banks becoming more difficult to deal with and creditors wanting faster payments, he says.

"The difficulty with the small businesses is that they haven't got the support network to assist them through these problems. Programs like Beyond Blue can be of assistance but in some cases I'm afraid I think the pride of the small business operator by nature is not to go and seek assistance."

Brooks says the onus on small businesses to stay abreast of and comply with health and safety laws creates problems.

"I think the difficulty with the health and safety laws is the changes are so significant that in some cases - especially in government construction projects - it's almost impossible for small businesses to comply. It's an area that COSBOA is taking on as an issue - looking at ways we can try and get support for small businesses in this area. I think WorkSafe in Victoria has done some excellent things and worked closely with industry but in the projects I've worked on with WorkSafe for the wood and the
furniture industry, the issue of stress has never been discussed at any time."

A 2008 Medibank Private report titled The Cost of Workplace Stress in Australia puts the cost of workplace stress on the economy at $14.8 billion annually.

Clements says a key priority for employers needs to be providing managers with training to identify psychological injury in the workplace. She says managers often fail to address the early warning signs that an employee is struggling to cope at work and frequently lack the skills to approach staff and have conversations on the matter that aren't punitive.

"More and more workplaces are starting to do that because they realise their managers are a key to managing the risk of psychological injury," she says. "The responsibility for psych injury used to be with doctors and psychologists and rehab providers but these days it's much more in the realm of the workplace and it's not only an HR issue; it's a management issue too."

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Key stressers

• Work factors: excessive hours of work and impossible performance expectations.
• Physical environment: bad lighting, noisy workplaces and dangerous facilities.
• Organisational practices: bad communications, lack of autonomy, confusion over roles and responsibilities.
• Workplace change: poor retention, high turnovers, insecure job climates and poor opportunities for development and promotion.
• Relationships: team conflicts, bullying and harassment and office politics.

Source: helpguide.org