Login
Are psychological safety laws being rendered ‘useless’ in small law firms?
Addressing psychological safety in the workplace is a new imperative for Australian businesses, with significant consequences for falling short. According to one lawyer-turned-psychological safety professional, small law firms are struggling to implement strategies that can create a safer work environment.
Kace O'Neill
Against the backdrop of Australia’s relatively new psychological safety laws, a formerly burnt-out lawyer is seeing far too many stressed-out business owners in the legal profession, partially due to struggles to maintain a psychologically safe working environment.
“Being unable to sleep, rest, switch off and having a constantly busy brain are all symptoms of being stressed at work,” said Sharné Lategan, a former firm principal, who now serves as the CEO consultant for Sharné Consulting and describes herself as a reformed lawyer.
“And the poor business owner who is as stressed as their staff, struggle to not only get their head around the new psychological safety legislation but also have no idea how to implement or create a safer work environment.”
A recent MYOB report highlighted a similar trend, as 31 per cent of business owners are aware that they need mental health support, while 44 per cent have experienced anxiety and 61 per cent believe they could do more to improve mental health and wellbeing.
With business owners admittedly struggling to cope, but hesitating to take action, it can set an alarming precedent for the workers who fall underneath their umbrella.
Considering the impact that mental health can have on business and productivity outcomes throughout the workplace, ensuring that business owners and their teams understand the pathways they can explore to address their mental health can be imperative.
Recent data from the Australian Institute and Safe Work Australia reinforced this sentiment:
• Australian businesses lose an estimated $4.7 billion annually due to absenteeism linked to mental ill-health and $6.1 billion due to presenteeism, where employees are present but not productive.
• Poor mental health results in 12 million days of absenteeism, placing additional strain on already stretched business owners.
• Since 2017, mental health claims have risen by 36.9 per cent, with lost time averaging four times longer, and compensation being three times higher, than for physical injuries.
As the projections for these mental health claims are expected to double by the end of the decade, proactive and efficient mental health strategies require real buy-in from employers and employees across large organisations and SMEs.
If not, then costs will fall heavy on the shoulders of business owners and bleed through to employees – only exacerbating the stress problem that is a catalyst for ill mental health.
“The psychological safety legislation offers a path to reverse the significant losses and stressors associated with ill-mental health in the workplace,” said Lategan.
“While business owners may find the code complex and daunting at first, it holds the potential to transform workplaces into environments of increased productivity and decreased absenteeism.”
Although the laws may be complex in nature, they are crucial. In the law space especially, tasks can be extremely strenuous and exhausting. Therefore, it’s important that law firms, especially smaller firms, really invest in mental health strategies to not only ensure the safety of their staff, but also for their business outcomes.
According to the Productivity Council’s inquiry, for every dollar invested in mental health initiatives, businesses can expect a return of $1.30 to $4.
“This shifts the focus from onerous compliance to prudent decision making,” said Lategan.
