Workers' Compensation claims may be impacted by "The Workplace Wave," a wave that Allianz has named.

'Covid disruption has not subsided': Allianz warns of workplace fallout

Allianz Australia has issued a warning that the worst of the epidemic is yet to come, as long-term disruptions to workplaces across the country begin to emerge. If not addressed, these disruptions may have an impact on workers' compensation claims.

The research was commissioned by Allianz and conducted by YouGov in accordance with the Australian Polling Council standard. The poll includes 506 Australian managers (senior managers and above) and 1550 employees (middle managers and below) over the age of 18. This study's online research was conducted between August 3 and August 15, 2022. Following the interviews, the data was weighted by age, gender, and area to reflect the most recent ABS population estimates.

Since COVID-19 first disrupted workplaces in 2020, organisations and their employees have experienced distinct "waves" of change. During the first wave, organisations noticed that employees were anxious and wanted to find a balance between their personal and professional lives. Then, organisations noticed a growing divide between workers and managers in terms of the best way to manage modern labour.

Employees now have higher expectations of a healthier, more sustainable workplace culture that emphasises the importance of mental health. Employee ideals, preferences, and demands have shifted, indicating a new wave of change. A wave that Allianz has named ‘The Workplace Wave’.

"The Workplace Wave means that change is our new normal, and despite emerging from the depths of the pandemic, the disruption to the workplace has not subsided.?Employees have refreshed values and changed perspectives of the role of work in their lives, challenging organisations to understand and adapt to these shifts to maintain mentally healthy workplaces."

Julie Mitchell, Chief General Manager of Personal Injury, Allianz Australia

According to the insurer's research, the public health crisis has caused "extreme" workplace disruptions, with employees now beginning to have a distinct perspective on the role of work in their lives. About two-fifths of surveyed workers, or 42%, and more than half of surveyed managers believe the pandemic's most significant effects on the workforce have yet to be felt.

According to Allianz, approximately two million workers are very likely to consider leaving their company in the next 6-12 months. The Workplace Wave is a long-term effect of the pandemic that employers did not anticipate and are now experiencing, according to the insurer.

Businesses that do not respond to the workplace wave are likely to see increased employee burnout and talent turnover, all of which can lead to higher rates of workplace mental health injuries. The pandemic is still having an impact on workers' compensation claims, with Allianz reporting a 17% increase in mental health claims since pre-covid.

And overall primary psychological underwritten workers’ compensation claims were responsible for 26,600 employee leave days in the 2021/22 financial year, an increase of 19% since 2019. “Despite emerging from the depths of the pandemic, the disruption to workplaces has not subsided,” Chief GM of Personal Injury Julie Mitchell said.

According to the study, 42% of employees attribute their dissatisfaction to fatigue and burnout, 34% to staff shortages, and 31% to a lack of recognition.

53% of managers surveyed believe their company has gone above and beyond to provide support and systems to create mentally healthy workplaces. “The relationship between employee and leader has become more important than ever before,” and “Organisations need to ensure that the tone from the top is very much aligned with the behaviours leaders want to see throughout the business.” Ms Mitchell said.

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myWorkCover

28 September 2022

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