About half of Australians have one or more chronic diseases or conditions, says the Australian Bureau of Statistics. Unsurprisingly, this issue is becoming increasingly prevalent in Australian workplaces. Such diseases are long-lasting, with effects that persist over time, according to the Australian Institute of Health and Welfare. In contrast, chronic conditions encompass any long-term health issues, symptoms, or pathologies that impact an individual’s ability to function or their quality of life. On a global scale, chronic diseases account for 75% of all deaths, and their prevalence continues to rise. The World Health Organization backs that up, referring to them as ‘noncommunicable diseases’. Regardless of terminology, chronic diseases and conditions profoundly impact businesses. Whether managing a small SME or a larger team, recognising how these challenges affect productivity, costs, and compliance can give you an edge in today’s competitive market.
Chronic Disease Trends in Australian Workforces
Australia’s workforce is facing a rise in chronic diseases such as diabetes, heart disease, and arthritis. Refer to the national health atlas series of reports, the most recent of which was issued in 2021.
Chronic diseases affect individual health, plus broader team dynamics and operational efficiency. The Workforce Health in Australia 2024 snapshot highlights that chronic diseases significantly contribute to employee absenteeism and presenteeism, reducing productivity and increasing operational costs. And, recent research reveals that more than seven in 10 workers believe their job has partially caused or worsened their chronic illness.
These issues span physical conditions, but may also bring mental health challenges, creating a compounding effect that businesses must deal with to ensure a thriving workforce.
Economic Impacts of Chronic Illness
Chronic diseases are a growing financial burden for Australian businesses. Higher absenteeism, increased presenteeism (working while ill), and escalating healthcare costs can erode profit margins. Presenteeism alone can account for up to 80% of total lost productivity costs.
For SMEs, where every team member plays a critical role, these challenges may be even more pronounced. The financial toll includes lost productivity, and extra costs related to employee turnover and retraining.
The report emphasises that addressing chronic disease through thoughtful strategies can result in substantial financial savings. A healthier and more engaged workforce is less likely to take unplanned leave, leading to smoother operations and stronger team dynamics.
Mental Health and Comorbidities
Evidence strongly supports the connection between chronic diseases and mental health conditions, such as anxiety and depression. Employees managing physical conditions often experience heightened stress levels, which can diminish focus, impair decision-making, and strain workplace relationships. Such challenges can disrupt team dynamics, resulting in lower morale and reduced productivity.
Supporting employees holistically, addressing both physical and mental health, fosters a resilient and collaborative workplace. To boost employee wellbeing, consider these comprehensive measures, including:
- Counselling services
- Mental health training for managers
- Employee assistance programs
- Encouraging open communication channels
- Implementing mindfulness activities, and
- Offering resilience-building activities
These initiatives can significantly enhance employee well-being.
SME owners should examine how the work environment may contribute to or intensify these challenges. Excessive emotional labour, vague role expectations, or inadequate support systems are common stressors that can lead to burnout or chronic health issues.
Adopting principles of universal design enables employers to create a more inclusive and supportive environment. This approach might include re-evaluating workloads to promote fairness, offering flexible working arrangements, fostering open communication and feedback systems, and designing policies that reduce barriers to health and wellbeing.
Meeting Legal Obligations
Employers are legally responsible for accommodating employees with chronic illnesses. This includes making reasonable adjustments to their work environment and ensuring that non-discriminatory practices are upheld. Ignoring these obligations can result in workplace injuries, worsening existing conditions, or even lead to legal challenges. Learn more through the Disability Discrimination Act 1992, the Fair Work Act 2009 and relevant state/territory laws.
By prioritising compliance, businesses can minimise these risks while creating a more inclusive and supportive workplace culture. Key actions include updating workplace policies, providing ongoing training for managers, and regularly reviewing workplace safety measures to identify potential risks.
Insurance as a Safety Net
Employers in Australia are mandated to obtain workers’ compensation insurance to cover their employees in the event of work-related injuries or illnesses. This requirement is governed by individual state and territory laws, with each jurisdiction operating its own scheme. It’s essential for businesses to understand and comply with the specific regulations applicable in their region to ensure adequate protection for their workforce.
For sole traders and self-employed individuals, traditional workers’ compensation may not apply. Instead, they should consider personal accident or income protection insurance to safeguard their income if they are unable to work due to illness or injury. These policies can provide financial support during periods when sole traders are incapacitated, ensuring continuity and stability for their business operations.
Navigating the complexities of insurance requirements can be challenging. As your broker or adviser, we are committed to assisting you in identifying and securing the appropriate coverage tailored to your specific needs. Whether it’s understanding compulsory insurances or exploring additional protections, we work with you to ensure your business is comprehensively safeguarded against potential risks.
