In case you missed it in our May/June issue.
The team’s mental health is a growing challenge for employers. Gary Willcox of MONIT explains the risks.
A new kind of risk is emerging for collision repair shop owners and it’s one that doesn’t involve tools or machinery. It’s the increase in mental health injuries.
For business owners, this isn’t just a wellbeing issue, it’s a business risk, and one that needs to be taken seriously.
According to Allianz Australia, psychological injury claims increased by 46% post-pandemic compared to pre-pandemic levels with a psychological injury usually resulting in 30 weeks off work, and costs nearly four times as much as a typical injury claim.
So what is driving this increase? While the collision repair industry has always been a demanding workplace there has been a notable increase in hostility since COVID-19 and workers have reported a rise in workplace aggression and customer abuse which can take its toll.
A national study by the Queensland University of Technology found that in some instances the abusive behaviour had become so frequent that it was no longer considered unusual, which has serious implications for employee wellbeing and burnout.
A recent Medibank survey found financial stress is the top concern for Australians, affecting 48% of respondents. Another development is the ageing population which has caused working age adults to step into caregiver roles for their elderly parents, creating an emotional stress for families and new challenges for both employees and employers.
Bye, bye Boomers
Another significant factor impacting the workforce is the retirement of the largest workforce in history, the Baby Boomers. As they exit the labour market in growing numbers, the responsibility of maintaining productivity and filling skills gaps is increasingly falling on younger generations. This generational shift is placing additional pressure on Millennial and Gen Z workers, who are being called upon to carry a greater share of the workforce burden, often without the same level of experience or support infrastructure. A 2023 Gallup report found that 44% of millennials globally said they experienced “a lot of stress yesterday,” compared to 39% of Gen X and 33% of Boomers.
Baby Boomers and Gen Xers often grew up with a “grin and bear it” mentality around stress. That doesn’t mean they weren’t affected, they just internalised it more or were less likely to seek help.
Millennials aren’t necessarily worse at coping with stress, they’re just navigating a different world and are more open and proactive about mental health.
While most psychological injury claims are genuine and originate within the workplace, employers do need to be alert to the potential for misuse. Because psychological injuries are subjective and often harder to independently verify than physical injuries, they can be vulnerable to exaggeration or even opportunistic claims, especially if there are underlying performance issues or workplace disputes.
That said, it’s critical to strike the right balance. You don’t want to dismiss valid concerns, but you also want to protect your business against false or inflated claims.
Ways to protect both workers and your business:
Keep Detailed Records – Documentation is your best defence:
Ensure regular performance reviews are completed, signed, and stored properly.
Keep a log of any WHS, harassment, or mental health training provided to staff.
Log any internal grievances or issues raised, noting the steps taken to resolve them.
Record inappropriate conduct, disciplinary actions, or behavioural concerns, with dates and witnesses if applicable.
Document any wellbeing check-ins, modified duties, or mental health support provided, even informal ones.
Adopt a formal approach to injuries and disciplinary action.
Communication Ensure workers are well informed in your business’s psychosocial policies and procedures with this communication recorded in safety meetings. Although these meetings are often communicated verbally, ensure each worker in attendance signs the meeting’s minutes below a statement which reads ‘I have been trained in and fully understand the policies and procedures discussed at this meeting’.
Risk Assessments Most state WHS laws require employers to manage psychosocial risks such as overwork, conflict, aggression, etc. Implementing controls shows that you’re taking your legal duties seriously which is critical if a claim is later made alleging a toxic or unsafe environment.
Workload burnout If a worker claims excessive hours or unreasonable workload contributed to their mental harm, your roster and job allocation records become evidence. Use digital time-tracking or scheduling software if possible, to avoid disputes over hours worked.
Witness Statements If a claim involves interpersonal conflict or behaviour that wasn’t reported formally, having statements from other team members (with their consent) may help provide context. They should also be obtained as close to the time of the incident as possible.
Zero tolerance Adopt a zero-tolerance approach to aggressive or hostile behaviour, making it clear to both staff and customers that abuse will not be accepted under any circumstances.
With a huge portion of the skilled workforce retiring, fewer younger workers coming through and an increase in hostilities stemming from external pressures or customer frustrations, collision repair shop owners are facing the perfect storm of mental injuries.
Collision repair shop owners need to decide to either take steps to manage this growing risk or prepare to defend their inaction when a claim lands. Addressing mental health isn’t just a nice-to-have, it’s a smart move to protect your people and your business. ●