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Workplace wellbeing

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Looking after yourself and your staff is a critical success factor in running a business. Supporting the mental and physical health of your employees is not only a legal requirement, it makes good business sense.

Work Health & Safety in Victoria​

Workplace wellbeing relates to all aspects of working life. From the quality and safety of the physical environment, job tasks, how workers feel about their role. engaging with colleagues, along with the culture and values of the business.

Wellbeing in the workplace is more than a feel-good fad, it fosters a resilient and engaged workforce reduces absenteeism, improves team dynamics, and contributes to a positive corporate culture. Workplace wellbeing comes directly from support provided for the mental and physical health of employees.

To understand the work health and safety requirements that apply to your business, the Australian government provides a complete outline of WHS and what it means for your business.

When planning for Workplace Health and Safety (WHS) in your business you need to comply with Victorian legislation, including:

The Victorian Occupational Health and Safety Act (Current Act in force)

Occupational Health and Safety regulations (Statutory rules)

Worksafe is Victoria’s workplace health and safety regulator. They enforce compliance codes and codes of practice. They also provide access to licenses and registrations along with being the workplace injury insurer.

Their website has useful links to the most recent data and information and you can subscribe to the WorkSafe newsletter for alerts and updates on current issues within workplace safety and health.

Mental health is now included in the Occupational Health and Safety regulations

The new Occupational Health and Safety (Psychological Health) Regulations commenced on 1 December 2025.

Under the Occupational Health and Safety Act 2004 (OHS Act), employers must provide and maintain a working environment for their employees, including contractors, that is safe and without risks to health, so far as reasonably practicable.

In Section 5 of the OHS Act, health is defined as including psychological health.

Read more about the regulations

What you need to know

Mental health refers to how well a person is in their thinking, managing their emotions, relating to others, and generally meeting the demands of everyday life and employment.

A mentally healthy workplace is one where:

  • employees feel respected, supported, and free to speak about concerns or stress.
  • risks to mental health are managed.
  • people with mental health conditions are supported by helping employees to stay at or return to work has clear benefits, both for the individual and the business.
  • there is a zero-tolerance approach to discrimination.

Changes in someone’s usual behaviour are often signs that there could be a mental health issue that the person is experiencing. Some common indicators of poor mental health include:

  • increased absence from work/unplanned leave
  • lowered concentration e.g. not being able to make decisions or not being able to focus on tasks
  • reduced motivation
  • decreased personal care
  • lower performance or problem-solving ability
  • irritability or signs of aggression
  • reacting with unusually high emotion
  • feeling sad or anxious regularly
  • disconnecting or withdrawing from others
  • increased use of nicotine, alcohol, and caffeine

There are many references to help with mental health, however if anyone’s life is in immediate danger, call emergency services on triple zero (000) or visit the closest hospital Emergency Department (both 24-hr services).

Workplaces rely on employees’ cognitive abilities and their interactions with colleagues and customers.

How well an individual performs within a team, their ability to connect with other people and their ability in handling daily challenges are all related to their mental health and overall wellbeing. There is a direct connection between the wellness of employees and their productivity and achievements.

When individuals experience mental health struggles, businesses incur the costs of sick leave, staff absences, reduced efficiency, staff turnover, and potentially even workers’ compensation claims.

The structure of work, management practices, and the functionality of the work environment can all impact one’s mental health. A health-focused work environment produces positive effects on individuals’ mental health and overall wellbeing. Those engaged in meaningful work, experience mental health levels that are up to four times better than those enduring prolonged unemployment.

Looking after the wellbeing of employees leads to:

  • improved physical and mental health
  • fewer injuries and sick days
  • greater job satisfaction
  • increased productivity
  • increased worker engagement
  • reduced staff turnover

By becoming a workplace wellbeing champion you will play a crucial role in creating a positive and productive work environment.

Employee burnout: Small businesses often have limited resources and staff, leading to increased workloads and responsibilities. This can contribute to employee burnout, affecting their mental and physical health and reducing their effectiveness.

High stress levels: The pressure to succeed, meet targets, and handle various aspects of the business can lead to high stress levels among both owners and employees. Chronic stress can impact decision-making, creativity, and overall job satisfaction.

Lack of work-life balance: Small business owners and employees often wear multiple hats, blurring the lines between work and personal life. This lack of balance can lead to exhaustion and negatively impact mental and physical health.

Limited resources for support: Small businesses might lack the resources to offer comprehensive mental health support programs. This can leave employees without proper resources to cope with stress, anxiety, and other mental health challenges.

Communication challenges: In smaller teams, poor communication can lead to misunderstandings, conflicts, and increased stress. Open and effective communication channels are essential for a healthy work environment.

Uncertain financial situation: The financial instability that some small businesses experience can create anxiety and uncertainty among both owners and employees, impacting their overall wellbeing.

Lack of awareness: Small businesses might not fully understand the importance of mental health and the potential impact on productivity and success. This lack of awareness can hinder the implementation of effective wellbeing initiatives.

Employee retention and engagement: Small businesses rely heavily on their team’s expertise. If employees are unhappy, stressed, or burnt out, it can lead to turnover and reduced engagement, affecting the continuity and growth of the business.

Resistance to change: Introducing new policies or programs related to mental health and wellbeing might face resistance from traditional or sceptical mindsets prevalent in some small businesses.

Isolation and loneliness: Small business owners, especially sole proprietors, can experience isolation and loneliness, which can take a toll on their mental health.

Recognising and promoting mental health is an essential part of creating a safe and healthy workplace.

What can I do?

Employers play a role in maintaining the health and wellbeing of their employees as well as assisting in their recovery. There are some key actions you can take to make a difference:

  • Talk about mental health openly to reduce the stigma sometimes associated with mental illness
  • Demonstrate a visible, active commitment to mental health in the workplace so that people feel safe to talk about mental health in the workplace
  • Make improving mental health a key objective of your business, following it with practical action plans
  • Treat mental health the same as you would physical health in all your health and safety initiatives and business decisions
  • Provide flexible options for those returning to work after absence due to mental illness
  • Provide a healthy physical work environment, e.g. light, noise, ergonomically designed tools of trade
  • Provide access to mental health support services for individual employees who require short term help
  • Identify and support champions to promote workplace mental health initiatives
  • Provide wellbeing learning programs with a focus on stress management and building resilience
  • Support various health related initiatives, e.g. good nutrition and exercise

LEARN MORE:

Wellbeing check-in conversations are an easy to way to give people a safe space talk.

Regular check-ins with employees help us get a feel for how they’re doing overall, so you can spot any changes in their behaviour and offer the right support when needed. Check-ins also help build empathy with the experience of your employees, which is critical to creating greater trust within the work environment. Make time to discuss what they’re trying, how they’re doing, and what they’re learning about caring for their wellbeing.

When employees feel heard, they are more likely to be engaged in their work, committed to the company, more likely to be productive, and stay in their roles for longer.

It is important to plan the check-ins and to think about how you can create a safe space for the people you are bringing together. Consider:

  1. Physical space: Your goal is to find an environment where you can talk freely without fear of being overheard or interrupted.
  2. Conversational space: You need to enable a dynamic, honest, open, and curious conversation. If people are wary to share in group settings, perhaps a one : one conversation is best.
  3. Relational space: People should be able to ask questions and seek feedback without fear of judgment or being penalised.

The Wellbeing Lab offer some helpful sheets to use when preparing for mental health and wellbeing conversations:

Speak and Share is a not-for-profit mental health organisation who encourages the tough conversations and challenges the stigma associated with mental health and wellbeing. They can run training workshops for you and your team.

The SMART Work Design model by Thrive at work is a useful model that employees and employers can refer to when designing meaningful and motivating work. Based on decades of research, the SMART Work Design model identifies five key job characteristics that result in positive outcomes across jobs and industries.

SMART work is: Stimulating, Mastery, Agency, Relational, and Tolerable demands.

Businesses should consider the design of the work they are offering employees to maximise workplace wellbeing outcomes. The SMART work design model identifies four key types of job resources:

  • Stimulating job resources – stimulating job resources include having task variety and
    meaning in the job.
  • Mastery job resources – mastery job resources include workers having role clarity, and
    receiving feedback, including getting appropriate reward and recognition in their work.
  • Agency job resources – agency job resources include job control and participation in
    decision-making.
  • Relational job resources – relational job resources are about having positive work
    relationships and having high levels of supervisor and co-worker support.
  • Tolerable demands – Job demands are aspects of work resourcing that require effort. In excess, or when there are insufficient buffering job resources, job demands can cause stress and discomfort. Every individual has different levels of tolerance to demands in the workplace, and stress can occur when the amount of work demands exceeds a person’s capacity to cope.

Regardless of your organisation’s size or industry, developing a wellbeing strategy that addresses potential risk factors in the work environment will enable employees to thrive.

A wellbeing strategy that takes an integrated approach to wellbeing will:

  • Address mental health regardless of cause
  • Prevent harm by addressing risk factors in the work environment
  • Promote the positive, and
  • Enable employees to thrive.

Developing a strategy should involve collaboration with employees who are interested in championing the promotion of mental health and well-being in the organisation, regardless of their role.

  1. Set your overarching goal: Where do you want to get to? The big thing you want to achieve.
  2. Set a series of objectives: A little reverse engineering comes into play here – look at what the ideal outcome or result could be. For example, no more ad-hoc employee sick days could be: Objective – reduce employee absenteeism.
  3. Develop the key strategies: What you will need to do to get there. These are the top line items of actions/activities that can be done to achieve the objectives and reach the goal. For example, Objective – reduce employee absenteeism. Strategy – address mental health challenges such as stress, burnout, and related issues to help decrease absenteeism.

Action planning

Converts your strategy to an actionable plan. Converting your wellbeing strategy to concrete activities will help you maintain focus and momentum. Your action planning focus should be guided by your goal and strategies. For example,

  • Objective – reduce employee absenteeism:
  • Strategy – address mental health challenges such as stress, burnout, and related issues to help decrease absenteeism.
  • Actions – ensure work resources (physical and material) match task demands in order to alleviate possible pain points and reduce stress on the team.

Monitor and review

Tracking outcomes can help:

  • support the long-term buy-in of all the team.
  • demonstrate the impact on wellbeing.
  • monitor activities and practices that can affect mental health; and
  • respond more effectively to problems or concerns in employee mental health.

A simple approach to developing a strategy is to look at:

WhatWhyHowWhen
What can we doWhy would we do itHow can we do itWhen will we know it’s done
StrategyPrincipleActionOutcomes
The thing that can be doneThe reason we would do the thingImplementation of all we can doTimeframes for monitoring and review of the things

Tools to help guide planning

Business Victoria have created a workplace wellbeing hub. A mental health and business wellbeing support for sole traders, small business, and employees.

The ‘WorkWell’ toolkit is created by WorkSafe as practical step by step ideas, tips, and suggestions to help employers prevent mental injury and create a safe and mentally healthy workplace.

Having a mental health plan ensures you have practical strategies in place to look after yourself. The Victorian Small Business Commission have developed mental health plan templates.

The Everymindportal provides tailored resources, check-ups, personalised action plans and showcases the experiences of small business owners through podcasts, videos, blogs and case studies.

Beyond Blue have developed a free mental health coaching program for small business owners. The program‘New access for small business’ is designed for businesses with 20 staff or less to give owners the support they need to manage stress and get back to feeling like themselves.

Black Dog Institute have developed easy-to-understand resources to facilitate wellbeing at work.

Ahead for business helps small business owners act on their mental health and wellbeing through personalised resources and tools tailored to their specific needs.

A mentor can help you to improve your wellbeing, develop strategies to cope and provide emotional support when and as you need it. Access wellbeing mentors, coaches and counsellors.

The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) assists and advocates for small businesses and family enterprises. They provide advice and research to improve policies, access to dispute resolution information and services and mental health support should the need arise. They also have tools and resources to help with planning and navigating challenges you may face while operating your business

People who exercise regularly have better mental health and emotional wellbeing, and lower rates of mental illness. It not only boosts our mood, concentration and alertness, but improves our overall physical health. Check out this infographic from Wellbeing Lab.

There are many organisations ready to help anyone who needs urgent support. As a first port of call, Business Victoria have pulled together a list of telephone and online chat counselling services.  They are available to help with immediate issues, to talk you through a tough time and can provide you with information, tools and advice.

Partners in wellbeing: Free, confidential, one on one support to improve your financial, business and emotional wellbeing.

Translated wellbeing resources: English, Español (Spanish), Français (French), Deutsch (German), Italiano (Italian), 中国 (Chinese), 日本語 (Japanese), Русский (Russian) and more

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DirectLine was established in 1986 to provide a 24-hour telephone counselling, information and referral service for anyone in Victoria wishing to discuss an alcohol or drug-related issue. It complements the network of treatment and support services in the community. Phone: 1800 650 890.

NURSE-ON-CALL is a telephone helpline that provides immediate, expert health advice from a registered nurse, 24 hours a day, 7 days a week. Phone: 1300 606 024. The phone service is for non-emergency health advice only.

Every year Gambler’s Help assists thousands of Victorians with free and confidential advice 24/7. We help people with gambling problems as well as those close to them who are affected by their gambling. Phone: 1800 858 858

South East Centre Against Sexual Assault (SECASA) provides counselling for individuals who have been impacted by Sexual Assault and Family Violence to people who reside in, attend school or work on the Mornington Peninsula. Phone: 1800 806 292

If your employees are victims of domestic, family or sexualised violence, you can use this ‘Small Business Starter Kit to help you support them.

illustration of mental health statistcs

Last updated February 2026

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