When we talk about workplace diversity and inclusion (D&I), we often think about factors like gender, ethnicity, age, or background. But mental health is another critical piece of the puzzle, one that often gets overlooked.
While the state of our mental health can be affected by factors outside the workplace, work can impact our mental health in both positive and negative ways. Regardless of a person’s baseline mental health, workplaces should play a protective, rather than harmful role.
In recognition of both World Suicide Prevention Day (Sunday 10 September) and R U OK Day (Thursday 14 September), DCA is highlighting the positive impact diversity and inclusion have on employee mental health, including leading practice tips for creating mentally healthy workplaces.
Why mental health matters for D&I
Experiencing poor mental health is very common – nearly half of us will experience a mental health illness in our lifetime, and at any one time 1 in 6 workers in Australia will be experiencing a mental illness. In fact, mental illness is now the leading cause of long-term sickness absence in Australian workplaces and is estimated to cost the economy up to $12 billion a year.
Employee mental health isn’t just a “nice to have” — it’s fundamental to creating a truly inclusive and diverse workplace. And, as recent events like the COVID-19 pandemic, increasing polarisation, and economic uncertainties continue to affect people globally, mental health challenges are at the forefront of workplace issues. Employers are also bound by Work Health and Safety (WHS) laws and psychosocial health regulations to prioritise employee mental wellbeing as a legal responsibility, not just a moral one.
Research shows that more than half of Australian workers hide a mental or even physical health condition to avoid discrimination at work. When mental health is neglected, people are more likely to feel isolated, stressed, or excluded, which can lead to disengagement, absenteeism, or burnout. Conversely, when employees are mentally well, they are better able to positively contribute to their workplaces – both culturally and in terms of productivity.
DCA’s most recent Inclusion@Work Index found that workplaces that actively work to improve inclusion are far more likely to have a positive impact on employee mental health. The data showed that 43% of workers in D&I active organisations reported work had a positive impact on their mental health, compared to 25% in D&I inactive organisations.
On top of this, employees in inclusive teams were six times more likely to report work had a positive impact on their mental health.
An intersectional approach is crucial
Employees from marginalised communities often face additional stress from microaggressions, tokenism, or outright discrimination. Having a mental health condition, on top of belonging to a minority group, can create compounded feelings of exclusion.
For example, First Nations people experience a higher rate of mental health issues than non-Indigenous Australians with deaths from suicide almost twice as high; hospitalisation rates for intentional self-harm 3 times as high; and rates of high psychological distress 2.4 times as high as for non-Indigenous Australians.
DCA’s most recent Inclusion@Work Index also found that Aboriginal and/or Torres Strait Islander workers experience the highest levels of discrimination and harassment at work, and are less likely to feel valued and connected in their workplaces.
However, the Index also found that inclusion has an even greater impact on the mental health outcomes of First Nations employees, with 66% of Aboriginal and/or Torres Strait Islander workers in D&I active organisations reporting work had a positive impact on their mental health, compared to 36% in D&I inactive organisations.
Similarly, LGBTIQ+ people also experience disproportionately high levels of poor mental health due to stigma, prejudice and discrimination, receiving a diagnosis or treatment for a mental health condition at two and a half times the rate of non-LGBTIQ+ people.
Research from Pride in Diversity found that only 38.1% of LGBTIQ+ people are fully ‘out’ in the workplace, which is concerning given DCA’s Out at Work report found that employees who were not completely ‘out’ at work were twice as likely to feel down and 45% less likely to be satisfied in their job when compared to those who were ‘out’ at work. Conversely, LGBTIQ+ employees who work for highly inclusive organisations are at least twice as likely to achieve, innovate, and provide excellent customer service.
How to create mentally healthy workplaces
With the right strategies, organisations can build more inclusive environments where all employees, regardless of their mental health status, can thrive.
Here are a few practical ways to improve workplace mental health:
1. Lead by example
Building mentally healthy workplaces requires genuine commitment from senior leaders, managers, and supervisors to effectively implement strategies and action plans, model positive behaviour, and influence workplace behaviours.
Without genuine commitment, employees may not feel safe accessing support and initiatives aimed at supporting mental health, and organisational culture can foster stigma towards employees experiencing poor mental health and unwellness.
2. Foster open communication
It starts with creating an environment where employees feel safe talking about their mental health without fear of discrimination or unfair treatment. Offering mental health awareness programs or education and having open conversations helps reduce stigma around mental health.
Managers can also regularly check in with their teams, not just about work, but about how they’re feeling overall. A simple “How are you doing?” can go a long way in showing support.
3. Build mental health into policy
Ensure your organisation has policies, resources and action plans designed to support mental health. This includes having guidelines in place to prevent bullying, harassment, and discrimination, as well as processes and policies to support staff who disclose poor mental health.
Make sure employees know how to access resources, policies and action plans designed to support mental health. Send regular reminders to employees on how to access support like Employee Assistance Programs (EAPs), particularly in response to external events that may negatively impact them or a diversity group they belong to.
4. Train managers in mental health first aid
Some managers or supervisors may not be aware of the impact or prevalence of poor mental health at work, may hold prejudiced views against people with poor mental health, or may not know how to support employees experiencing poor mental health. Training can help increase awareness of mental health and how to recognise and respond to employees experiencing mental health challenges (e.g., mental health first aid courses).
5. Offer Flexible Work Arrangements
Flexibility in work schedules allows employees to better balance work and life demands, which has been shown to reduce stress and improve mental wellbeing. DCA’s latest Inclusion@Work Index found that employees who had access to the flexibility they needed to manage work and other commitments were almost four times more likely to feel their work positively impacted their mental health.
6. Promote mentally healthy work habits
Encourage employees to engage in workplace behaviours that promote mental wellbeing, like taking breaks, having healthy work-life boundaries, incorporating wellbeing into development goals and planning, and incorporating physical fitness into their day-to-day lives for example, attending a gym or yoga class during break time, going for regular walks or having walking meetings.
7. Prevent stress and burnout
Employers can help prevent negative mental health impacts by offering paid mental health days to allow employees to take time off when they need it to reduce stress and prevent burnout. Providing access to wellness programs can also be helpful, for example, mindfulness workshops, stress management training, or fitness programs that can help employees take care of their overall wellbeing.
8. Promote a culture of inclusion
The most important thing to remember is the profound effect workplace inclusion has on mental health. We know from DCA’s extensive evidence base that organisations actively working to be more inclusive are more likely to have a positive impact on employee mental health.
By fostering an inclusive workplace, organisations can unlock the full potential of their diverse workforce and provide the support their employees need to thrive. As we face an increasingly complex and stressful world, ensuring employees feel valued, respected, and supported is more important than ever.
Additional resources
- DCA’s Mental Health resource page
- DCA’s Out at Work report
- DCA’s Inclusion@Work Index 2023-2024
- DCA’s Mapping the State of Inclusion and Mental Health in the Australian Workforce
- DCA blog: “We all have a role to play”: Addressing workplace mental health
- DCA blog: Supporting Staff Through Bereavement
- Creating Mentally Healthy Workplaces, the Mentally Healthy Workplace Alliance
- Blueprint for Mentally Healthy Workplaces, National Mental Health Commission
- Workplace Mental Health for Leaders, Black Dog Institute
- The State of Workplace Mental Health in Australia, Beyond Blue
- Fact sheets on common mental health conditions, treatments and wellbeing, Black Dog Institute
- Embracing mental health in the workplace in Asia, Community Business (Asia)
If you or someone you know is struggling with poor mental health, help is available.
See below for a list of mental health agencies:
Beyond Blue 1300 22 4636
Brother to Brother 1800 435 799
Headspace
Lifeline Australia 131114
MensLine Australia 1300 78 99 78
MindSpot 1800 61 44 34
People Reaching Out to People (PROP)
QLife 1800 184 527
SANE Australia 1800 18 7263.