The rise in psychological injury claims means HR needs to invest in countermeasures
Psychological injuries in the workplace have become increasingly visible across industries, from healthcare and education to retail and customer service.
While the numbers appear alarming, experts suggest this reflects not just a worsening problem, but also a significant cultural shift.
Employees are now more willing to report incidents and seek support rather than silently accepting harm as part of the job.
In discussion with HRD, Allianz’s national manager mental health strategy and delivery, Brianna Cattanach, said there are two key factors behind the rising reports.
First, workers are increasingly comfortable coming forward. Psychosocial risk legislative changes rolled out across Australia over the past few years have legitimised these concerns, making workplaces more accepting of reports and giving employees permission to speak up.
This is particularly noticeable among younger workers, who are more likely to report issues compared to previous generations, with data from Allianz revealing a 28% increase in psychological claims over the past year.
Second, there is a genuine deterioration in behaviour toward workers. Incidents are no longer confined to traditional retail and healthcare settings. The shift toward remote work and digital communication has created new vulnerabilities.
Call centres, social media roles, and customer-facing positions increasingly report abuse. Even in education, teachers face inappropriate contact from parents and community members.
The anonymity and distance provided by digital channels appear to embolden aggressive behaviour.
These issues have grown significantly. “Being assaulted by a person” or “exposure to workplace violence” grew by 76% from 2019 to 2023.
Who is most vulnerable?
Cattanach noted that younger workers face disproportionate risk, partly due to their limited experience in handling customer escalations, but also because they are more frequently targeted for abuse.
Female workers also experience higher rates of aggression compared to their male counterparts, partly because they dominate fields like education and healthcare where incidents are more common. They make up a shocking 68% of occupational violence claims.
According to the Allianz report, 87% of retail workers and 95% of healthcare professionals reported suffering abuse or violence on the job
Regional areas present a unique challenge, said Cattanach. Workplaces serve as crucial community support mechanisms, and frustration intensifies when expectations aren't met.
Additionally, regional areas often have higher rates of mental illness and vulnerable populations, which can contribute to occupational violence and aggression.
In FY25 alone, regional claims for workplace violence increased 9.43%.
What HR is doing to alleviate issues
Forward-thinking organisations are implementing multi-layered responses, said Cattanach.
At Allianz, which is a customer facing company, this includes:
- immediate support services: Rather than waiting for therapy appointments, Allianz has partnered with employee assistance providers to offer on-the-spot psychological debriefing. A 10–15-minute conversation with a psychologist allows staff to process emotional weight immediately after a difficult incident, discussing coping strategies and next steps.
- leadership development: Managers must do more than handle customer escalations – they must recognise when their team members need support. Strong leadership capability, combined with clear messaging about acceptable and unacceptable behaviour, sets organisational standards while protecting employees.
- proactive technology: Voice analysis technology represents a significant innovation. By detecting raised voices, inappropriate language, and signs of tension during calls, the system alerts managers in real time and provides staff with supportive tips and de-escalation strategies. This is particularly valuable for hybrid and remote workers who might otherwise go unnoticed when struggling with a difficult call.
The root cause connection
Cattanach noted that many incidents are preventable. Poor customer journey design, unclear organisational messaging, and customer confusion drive frustration that ultimately impacts employees.
When customers cannot find a product or understand a process, or when communication from the organisation creates ambiguity, tension escalates.
Additionally, when organisations delay delivering updates until they have "good news," customers feel left in the dark – breeding resentment that frontline staff must manage.
Guidance for HR leaders
For those responsible for protecting vulnerable workers, three priorities emerge:
-
invest in line managers: Capable leadership is fundamental to how supported employees feel and how well organisational standards are maintained. Managers must clearly articulate what is and isn't acceptable behaviour and provide boundary-setting to their teams.
- create proactive support systems: Be transparent with teams that some roles will involve difficult incidents. Acknowledge this reality, commit to preventing what you can, and ensure immediate support is available when incidents occur.
- equip staff with protective skills: Communication training, de-escalation techniques, and customer service skills are particularly critical for younger, less-experienced workers. These soft skills serve as a genuine protective factor, helping employees navigate difficult interactions successfully.
The rise in psychological injuries reflects both positive cultural change and genuine challenges in how organisations and their customers interact with workers.
While eliminating all incidents may be unrealistic in many industries, a comprehensive approach, combining supportive leadership, clear policies, technological innovation, and employee skill development, can significantly reduce harm.
The conversation is shifting from "this is just part of the job" to "we will actively protect our people." This shift protects employees and, ultimately, strengthens culture and performance.
