Compensation claims on the rise despite companies prioritising health and safety

New research has revealed that despite the legitimate prioritising of health and safety in the Australian workplace, compensation claims continue to soar.

Safe Work Australia’s 2024 data showed a significant increase in serious claims over the past decade, with a 20.5 per cent rise – with many pertaining to mental health and psychological issues.

Yet, across workplaces, the number of employees who believe their business is prioritising health and safety continues to rise (80 per cent compared to 70 per cent in 2023), according to a study by COS. This was a key driver for the employees who feel their employees don’t fully support health and safety.

“It’s encouraging to see the progress employers have made in prioritising health and wellbeing, with 1.5 million more Australian workers feeling protected compared to last year,” said COS co-chief executive Amie Lyone.

“We’ve found that regularly assessing staff needs across all work environments – whether in an office, on the road, or on the warehouse floor – and actively addressing concerns helps foster a culture where safety and wellbeing remain a priority for everyone. This, in turn, contributes to a healthier, more engaged, and productive workplace.”

“Interestingly, concerns about the expectation to work while sick have risen significantly in the past two years (46 per cent vs 32 per cent), suggesting that as more workers return to physical workspaces, anxiety around illness transmission is rising.”

“For employees in industries that require a physical presence such as warehousing, hospitality and healthcare, this can be particularly concerning.”

Lyone offered a list of strategies that can enhance the health, safety, and productivity in the workplace.

1. Engage employees in safety discussions: Facilitate company-wide meetings or tailored sessions for different teams to better understand their unique safety concerns and needs – such as office staff, warehouse and factory workers, transport and logistics personnel, and frontline service employees. It’s also important to consider differing demographics, including employees of various age groups, as younger workers may require more training and guidance, while older employees might benefit from ergonomic adjustments or role-specific safety measures. By addressing the diverse needs within the workplace, businesses can develop more effective and inclusive safety initiatives that ensure all employees feel supported.

2. Set clear timelines for action: Safety initiatives often fall by the wayside when workloads increase. Setting clear deadlines for implementation and regularly communicating progress to employees ensures accountability.

3. Commit to ongoing safety reviews: Workplaces evolve, and so do safety risks. Regularly revisiting workplace safety measures every six to 12 months ensures continuous improvement.

4. Integrate hygiene, safety, and organisation solutions: Maintaining a clean, well-organised, and hazard-free workspace is critical to workplace safety. Implementing proper hygiene solutions such as hand sanitiser stations and disinfectant supplies can help reduce the spread of illness. Safety signage ensures employees are aware of potential risks and workplace policies, while storage and organisation solutions can prevent clutter, reduce trip hazards and improve efficiency.

“By including the entire company in conversations around workplace safety, it will help employees understand that the business cares about their welfare and will also make them aware of any barriers that are preventing their improvements from being actioned, and what the company’s plan is to work through this,” said Lyone.

Kace O'Neill

Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.