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Corporate citizenship can eliminate stress claims

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14 August 2009 8:47am

Employers must move "beyond legislative compliance alone" to combat the growth of stress-driven compensation claims and injuries, according to Curtin University research.

State and Federal legislation aims to limit access to compensation for psychological claims, but fails "to address the fact that an increasing number of Australian workers are experiencing mental-stress disorders that impact directly on work performance", the researchers, led by Dr Marina Ciccarelli, say in Minimising Mental Stress among Workers.

Workers' compensation claims of all types dropped by 11 per cent in the decade to 2006, they say.

But claims categorised as "mental disorders" went the other way, increasing by nearly five per cent.

The duration of compensable psychological claims is, on average, more than twice that of other work-related injury claims (10.9 weeks compared to 4.1 weeks), and nearly three times more expensive ($15,500 compared to $6,100).

The problem, the researchers say, lies in the limited guidance available to employers on meeting their duty of care to minimise mental-stress hazards. This shortfall leads to underdeveloped stress controls in company risk management processes.

The solution, they say, is "good corporate citizenship".

Becoming a corporate citizen
According to the researchers, corporate citizenship involves thinking of corporations as social institutions "due to the permeation of their activity across everyday life, including our roles as consumers, workers and community members".

Good corporate citizenship, they say, involves a proactive approach to and investment in employee wellbeing, and an understanding that people in positions of authority (such as managers and supervisors) influence the health of individuals, whether or not they're at work.

This approach is particularly important, the researchers say, in an era in which technological advancements have provided workers with temporal and spatial mobility.

Employees, more than ever, are performing unpaid overtime or "overspill" work at home, leading to "an increased blurring of work and family life" and a possible increase in stressors.

"Employers need to understand that stressors in either work or non-work environments can potentially impact on an individual's performance in other life roles," they say. "It is not realistic to expect workers to 'leave their troubles at the door'.

"How workers respond physically or psychologically to the demands of their work are a product of the relationships between the worker, the employer, the organisation and other stakeholders.

"These relationships therefore must be based on a set of moral rules (driven by both business and society), and not simply on compliance with legislative requirements."

The researchers say that to reduce exposure to workplace psychological hazards, and improve both employee and community health, employers should:
  • drive industry change by creating guidance notes on wellbeing and "defining" workplace cultures;


  • provide sufficient training, knowledge, technological equipment and human resources "to match work demands to the capabilities of workers";


  • offer flexible working arrangements, such as optional start and finish times;


  • offer relaxation training, stress-management counselling and cognitive behaviour therapy to staff; and


  • facilitate access to other health services for workers and their families.
Employers that "actively pursue the corporate citizenship agenda", they say, will:
  • win recognition as employers of choice;


  • gain a stronger workforce commitment to OHS;


  • benefit from improvements in workforce productivity;


  • provide workers with the resources they need to become more resilient to stress; and


  • reduce stress-related and other compensation claims.



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