Key takeaways
- Mental health risks are rising. Over one-third of workers in Australia face high mental health risks, making this a critical workplace concern.
- Mind and body are connected. Physical health and financial stress directly impact mental wellbeing, showing why siloed wellness programs don't work.
- A holistic approach delivers ROI. Integrated employee wellbeing strategies that address mental, physical and financial health together produce measurable returns.
- Support is within reach. Digital access to mental health services at any time of day helps ensure employees get help when they need it most.
Exploring the interconnected elements of health
Part one: Understanding mental health within a holistic workplace wellbeing strategy
Mental health conversations are on the rise. While it's positive that people are talking more, the reality is that many workers are struggling. And often, employers are tackling this challenge in isolation—offering a meditation app here or a gym membership there—rather than taking a holistic view of wellbeing.
The mental health of workers in Australia has declined to levels in line with the lows felt during the pandemic. According to the Q1 2026 TELUS Mental Health Index (MHI), over one-third of the workforce— 34 per cent—face a high mental health risk. Another 43 per cent are at moderate risk.
When people feel their employers don't care about them, their health can decline quickly. Employers in Australia also have a legal obligation to manage psychosocial hazards proactively to help reduce the risk of burnout-related compensation claims and creating a psychologically safe workplace. This is why employers must take mental health seriously and consider how it connects to their overall corporate wellness strategy
Here's a closer look at how mental health connects to other areas of life. We also look at how it impacts employee engagement, productivity and safety.
Understanding mental health within a holistic workplace wellbeing strategy
We use the term "mental health" often, but it's helpful to define what it actually means. The Parliament of Australia defines mental health in the National Mental Health Plan as a state of emotional and social wellbeing in which a person can cope with the normal stresses of life and achieve their potential. It also emphasises that mental health is not merely the absence of mental illness.
The World Health Organization emphasises that mental health has intrinsic and instrumental value. It enables people to make decisions and build relationships, and it's therefore defined as a basic human right. The Australian Department of Health and Aged Care describes mental health as a state of wellbeing that enables you to deal with life's challenges. It's a feeling of resilience that allows people to enjoy life and connect with others while coping with stressors, staying productive at work, at home and in the community.
Understanding this definition is the first step toward building a health and wellbeing strategy in your organisation, embedded in organisational culture rather than treated as a standalone idea.
The connection between mental and physical health
Too often, "psychological" and "physical" are seen as separate states. But the brain is part of the body, and mental and physical health affect one another in many ways.
For example, it's well-established that depression is associated with heart disease and cardiac mortality. The 2021 Census found that people who reported having mental illness were also more likely to report other long-term health conditions, most commonly arthritis, asthma and diabetes.
Physical activity is a powerful tool for mental wellbeing and supports physical wellbeing as part of broader employee health. Researchers from the University of South Australia have called for exercise to be a mainstay approach in depression management based on recent study results. Their research shows physical activity is 1.5 times more effective than counselling or treatment with leading medications.
These interconnected health elements show why an integrated approach to employee health supports overall wellbeing, rather than treating physical, mental and financial health as siloed concerns. Implementing proactive workplace wellbeing strategies that address these connections can help employees stay both physically and mentally fit.
The connection between mental and financial health
Financial stress is one of the key risk factors for poor mental health. This relationship is central to understanding why organisations need a holistic wellbeing strategy.
People experiencing financial challenges such as debt, economic disadvantage, long-term unemployment and need for income support are twice as likely to experience mental health challenges compared to those without these kinds of financial struggles. The reverse is also true. People experiencing mental health challenges are twice as likely to experience financial challenges such as major worsening of finances over the past year, unpaid bills, lack of emergency funds, socio-economic disadvantage and poorer perceived financial prosperity compared to those without mental health issues.
A survey of 1,000 Australians reflected that 46 per cent of respondents had their mental health impacted by the cost of living, and 75 per cent had lost sleep because of money-related stress, a form of financial strain that can also erode work life balance when money pressures spill into daily life. According to the Columbia University Department of Psychiatry, a lack of adequate sleep has been shown to amplify negative emotional reactions to stress and reduce positive feelings.
The 2025 TELUS Mental Health Barometer reveals that 44 per cent of Australian employees identify financial concerns as their primary source of personal stress. Even more concerning, 31 per cent don't have emergency savings for basic needs, and their mental health scores are nearly 20 points lower than the national average.
This bidirectional relationship highlights why treating financial wellness separately from mental and physical health is ineffective. A comprehensive corporate wellness strategy must address all three pillars together. To help improve employee wellbeing, organisations need to address this financial dimension as part of the wider employee experience.
Building a holistic health strategy to improve safety and workplace performance
A truly holistic workplace health strategy recognises that mental health directly impacts workplace safety, productivity, compliance with Australian workplace health and safety regulations, as well as workplace culture and organisational performance.
In 2022-23, mental health conditions accounted for 10.5 per cent of all serious workplace injury claims. This represents a 19 per cent increase over the previous year and, as of 2025, a 161 per cent rise over the last decade. It was the second-largest increase in all injury or illness claims, lagging just behind the serious claims related to infectious diseases—which was driven primarily by COVID-19.
Under Australian workplace health and safety laws, employers have a legal duty to manage psychosocial hazards as part of their duty of care. This means you must protect workers from psychological harm just as you would from physical harm. A structured corporate wellness strategy that addresses root causes—rather than fragmented wellness perks—is essential for meeting these obligations and ensuring Fair Work Act compliance.
Anxiety and isolation continue to affect employees. For almost three years, these have been the lowest mental health scores among workers in Australia according to the January 2025 MHI.
Almost one in four employees don't perceive their workplace as supportive (January 2024). The average mental health score of this group is more than 19 points lower than that of workers who report having a supportive workplace. Workers who don't feel valued and respected by their colleagues and those who report their workplace is unsupportive are more than twice as likely to report that their mental health adversely affects their productivity at work, highlighting the need to act on early warning signs and for empathetic managers and senior leaders to help reduce stigma around mental ill health.
The Australian HR Institute estimates that poor mental health cost the Australian economy up to AUD $936 million every day. A significant piece of these costs is evident in the workplace. Absenteeism, for example, and the costs of lost productivity and pay to cover absent workers cost an estimated AU$14 billion per year.
Learning how to spot signs of burnout is crucial for managing workplace stress before it escalates into serious performance and safety issues.
Measuring impact: The financial case for holistic employee wellbeing support
Investing in mental health benefits should be treated as a strategic approach for your organisation, not just a benefits decision. In one MHI survey, 41 per cent of workers in Australia rated their employer support for mental health as very good/excellent. This group boasts mental health scores that are at least seven points higher than the national average (September 2025).
Research from PricewaterhouseCoopers indicates that even within the context of the range of economic pressures that employers face, it’s critical to provide support for mental health in the workplace. Specifically, they cite data showing that across Australia, taking effective actions that help reduce the impacts of mental health conditions through absenteeism, presenteeism and compensation by one-third leads to an average positive return on investment (ROI) of 2.3, though some evidence places the return as high as $4 for every $1 spent on mental health support.
In other words, for every dollar spent to successfully implement an appropriate action in support of employee mental health, there’s on average AU$2.30 in benefits to be gained by the organisation through improved productivity and fewer claims.
Many organisations still rely on disconnected wellbeing initiatives, but a strategic approach supports more efficient use of resources and reflects a stronger commitment to supporting the whole person. When you address mental, physical and financial wellbeing together, you address root causes rather than isolated symptoms.
Organisations should ensure employees not only have access to mental health support and services, but can access them on their own terms by making them easily available through digital channels at all hours of the day, helping them manage their own health while showing the organisation's commitment to support.
Dive deeper into holistic health
Learn how mental, physical and financial health are interconnected aspects of wellbeing, and how they affect the performance of employees and organisations alike.
Download the eBookFrequently asked questions
What’s the difference between traditional wellness programs and a holistic employee wellbeing strategy?
Traditional wellness programs often offer isolated perks, such as a meditation app, and a gym membership. A holistic employee wellbeing strategy integrates mental, physical and financial health support. It recognises that financial stress can lead to sleep loss, which impacts mental clarity and physical health. By addressing these interconnected elements, organisations see better outcomes and stronger ROI. Standalone initiatives and wellbeing programs are less effective unless they sit inside an integrated approach.
Why is financial wellness included in a holistic wellbeing strategy?
Financial stress is one of the leading sources of workplace anxiety. When 44 per cent of Australian employees cite financial concerns as their primary source of personal stress, ignoring this dimension means missing a critical lever for improving mental health. A whole-person wellbeing approach includes financial wellness education and support because the three pillars of health are inseparable.
How does a holistic workplace health strategy help with Fair Work Act compliance?
Australian workplace health and safety laws require employers to manage psychosocial hazards and ensure a psychologically safe work environment. A structured corporate wellness strategy that addresses mental, physical and financial wellbeing demonstrates your commitment to protecting workers from psychological harm. This proactive approach strengthens your compliance position and reduces your legal risk, while helping enable employees to thrive in an inclusive culture built on positive relationships and clear focus from key stakeholders.
How can we measure the success of a holistic wellbeing strategy?
Start by establishing baseline metrics across mental, physical and financial health indicators. Track absenteeism, presenteeism, workplace injury claims, employee engagement scores and utilisation of support services. Continuous measurement and employee feedback loops can help you refine your approach over time.
How do employers build a whole-person wellbeing approach when employees are remote or hybrid?
Digital access is crucial. Ensure your mental health support, training resources and financial wellness tools are available 24/7 through online channels, including wellbeing benefits, work schemes, health promotion resources, mindfulness practices and expert support delivered digitally. Remote employees often feel more isolated and face unique financial pressures. A holistic strategy acknowledges these challenges and provides support that works regardless of location or time zone.
