Mental Health at Work: How to Create a Stigma-Free Workplace

Workplaces have come a long way in how they talk about wellbeing, but mental health at work is still too often surrounded by silence. Employees may avoid speaking up out of fear of being judged, overlooked or treated differently. The stigma lingers and it comes at both a human and business cost.

The opportunity is clear: organisations that normalise mental health conversations and remove stigma build stronger, more engaged and more resilient workforces.

As Sam Novak, Head of People Experience, at NW People puts it:

“Respect and kindness might sound simple, but they’re powerful. When workplaces embrace those values, they create environments where people feel safe to speak up.”

Why mental health at work matters

The statistics are sobering. In 2022–23, psychological injuries made up 10.5% of all serious workers’ compensation claims in Australia. This was a 19% increase in just one year and nearly double compared to a decade ago, according to Safe Work Australia. These claims also take four times longer to resolve than physical injuries and cost three times as much in compensation.

Meanwhile, one in five Australian workers report high or very high psychological distress directly linked to workplace factors such as excessive workloads, poor support or unclear roles, according to EML Group. Stigma compounds the problem. Ninety-four per cent of Australians with lived mental health experience say stigma still persists, while only 7% feel their workplace is always a safe environment to talk openly.

Sam says uncertainty is one of the biggest challenges:

“For people in casual or temporary roles, not knowing what’s next can weigh heavily. We try to provide consistency where we can, whether it’s clear communication about assignments or making sure there are alternative opportunities if one role ends.”

How stigma shows up at work

Stigma is not always obvious. Sometimes it is overt: dismissive comments, unfair treatment or discrimination. More often, it is subtle: assumptions, silence or treating mental health leave as “less valid” than a physical sick day.

Sam has seen how important it is to handle sensitive conversations well:

“It’s not about someone being ‘hard to manage’. It’s about recognising that everyone faces challenges. And when it comes to having conversations, timing and setting matter. It’s about approaching someone privately, in the right space, so they feel safe to open up.”

Even well-intentioned workplaces can overlook how policies, behaviours or culture reinforce stigma. The result is that people keep quiet, avoid help and carry the burden alone.

The impact on employees and teams

When stigma exists, employees are less likely to access available support. This affects not just individuals but whole teams.

• Help-seeking drops: Employees hide struggles, delaying intervention and making recovery harder.
• Trust erodes: Without psychological safety, people are less likely to speak up, share ideas or admit mistakes.
• Productivity suffers: Presenteeism, where employees show up but cannot perform at their best, drains energy and output.
• Turnover increases: Unaddressed stress and burnout push valued staff to leave.

Sam recalls one example that showed the power of compassion:

“We had a worker living with bipolar disorder who, on a difficult day, went to sit in his car and was found asleep. Because his host employer responded with care, not judgement, he was supported back into work. That compassion gave him back his sense of purpose. It’s proof that how a workplace responds makes all the difference.”

She adds that casual workers can be especially vulnerable:

“Casuals can sometimes feel like outsiders. The best work environments are the ones where they are treated as part of the team from day one. That inclusivity makes all the difference.”

Building mentally healthy workplaces

At NW People, tackling mental health is not left to chance. It is embedded in systems and culture. Sam highlights three focus areas any organisation can apply:

• Visibility: Make mental health part of everyday dialogue. Awareness days like R U OK? are important, but the message should carry through the year.

“We run Safety Squad days and R U OK? events not as one-offs but as part of our culture. It’s not just about a single day in September; it’s about showing people we care all year round.”

• Voice: Provide safe channels for employees to speak up, whether through an Employee Assistance Program (EAP), on-site support or informal check-ins.

“Our EAP is available 24/7 for any challenge – work-related or personal. We’ve even had situations where social workers or psychologists follow through with at-risk employees and connect with next of kin. That level of care shows people they’re never on their own.”

• Vision: Embed mental health into workplace strategy. From recruitment to onboarding, wellbeing should be treated as part of core business, not a side initiative.

“We make sure we place people where they can succeed, not just a ‘bum on a seat’. That means understanding both the candidate’s needs and the client’s culture. The right fit makes all the difference for wellbeing.”

Practical steps to reduce workplace stress and stigma

There is no single solution, but small, consistent actions add up. Some of the most effective include:

• Build literacy: Invest in training to help staff and managers recognise signs of distress and respond with confidence.
  
  As Sam puts it, “Mental health is everyone’s responsibility, inside and outside of work. We all play a role in creating environments where people feel safe and supported. Even within our own team, there are times when managers are managing their own mental health challenges while supporting team members who are also struggling. It’s a reminder that this isn’t just a workplace issue; it’s a human one and we’re all in it together.”
• Treat all workers with equal care: Casual, contract and permanent employees should all feel valued and supported. Including casuals in team meetings, recognising their contributions and ensuring they have equal access to support programs sends a clear message that wellbeing isn’t tied to employment status.
  
• Make support visible: EAPs, wellbeing check-ins and safety days only help if people know about them and feel safe to use them. Promote them regularly, make access simple and ensure confidentiality is guaranteed.
• Lead with humanity: Policies are important, but day-to-day behaviour matters more. Managers who approach performance issues with respect, handle sensitive conversations privately and show genuine care dramatically reduce workplace stress.

Sam says the simplest act is the most effective:

“Sometimes the most powerful thing you can do is listen. We’ve had candidates who just want to talk through what they’re experiencing. Being heard can make all the difference in helping them feel supported.”

The business advantage of prioritising mental health

Investing in mental health isn’t just the right thing to do; it makes business sense. Workplaces that support mental health can achieve up to a 4:1 return on investment through increased productivity and reduced absenteeism.

For organisations competing for talent, it is also a differentiator. Employees want to work where they feel supported. Workplaces that treat mental health as a strategic priority gain an edge in attracting, retaining and engaging people.

Sam has seen this firsthand:

“We work with host employers who genuinely care about their people, and you can see the impact. They’re the ones who attract great talent and keep it because employees know they’ll be supported.”

Final takeaway: Small steps, big change

Creating stigma-free, mentally healthy workplaces does not happen overnight. It is about embedding respect, kindness and openness into daily culture in the following ways:

• Treat mental health like physical health.
• Layer small, consistent actions that build trust.
• Make it safe for people to speak up.

As Sam sums up:

“We’re all on a journey. Some days we don’t get it right, but as long as we strive to do better than yesterday, that’s progress.”

Creating stigma-free workplaces starts with the right strategy and support. At NW People, we partner with organisations to design workforce strategies that prioritise wellbeing, engagement and long-term success.

Get in touch with our team today to explore how we can help you hire the right talent and build a culture where your people thrive.