By Catherine Ngo Senior Editor and Content Writer, My Business

In today's volatile economic climate, an organisation's workforce is a crucial asset but presents significant risks. As businesses face challenges, employees' ability to navigate current storms and prepare for the future is critical to their success. 

The global aftershocks of the pandemic, slower economic growth, and rising costs of living impact employee wellbeing and introduce external stressors, including potential higher unemployment. HR and business leaders are now faced with where to direct resources to improve employee wellbeing and which decisions will impact workforce resilience.

Leveraging data can be a game-changer in today's environment. Organisations that tap into general and industry-specific data to inform decisions about their benefits and insurance packages have a potential advantage. A retrospective look at data over the past half-decade can provide insights to help drive efficiency and improve outcomes for the future. 

Aon's analysis of insurance and wellbeing claims data from 2017-2022 reveals notable trends in health risks for employees before, during, and after COVID-19. The Aon paper shares steps employers can take to mitigate the impact of external stressors on insurance program costs and enhance value from investments in health and benefits.

MORE AND MORE EMPLOYERS ARE HAVING WELLBEING STRATEGIES

Aon's Rising Resilient Report indicates that workforce resilience is a product of investing in health and wellbeing. Globally, 63% of organisations recognise the need to increase their investment in wellbeing initiatives post-pandemic. Aon's 2023 Wellbeing Study showed that 83% of companies had a wellbeing strategy compared with 28% in 2020. However, only 30% of employees are resilient, suggesting more needs to be done to ensure investments in wellbeing initiatives deliver value to organisations.

Organisations with broader health and wellbeing programs were better able to support their workforce during the COVID pandemic, especially with working-from-home (WFH) arrangements. A well-informed wellbeing strategy can provide structure control and encourage health-positive behaviours. Employees who agree strongly that their organisation cares about their wellbeing are 1.5 times more likely to stay with that employer.

WHAT'S BEHIND THE CLAIMS FOR SALARY CONTINUANCE (SC)? 

Cancer in Australia: Insights from the Data

Cancer remains a significant health concern in Australia, with an estimated 150,000 new cases diagnosed in 2021 and a projected increase to 1.7 million by 2031. It has emerged as the leading cause of serious claims (SC), as evidenced in 2021 and 2022. Notably, in addition to a higher proportion of cancer-related claims, there has been a concerning trend of more late-stage diagnoses due to delays in screening and treatment caused by the COVID-19 pandemic.

The full impact of the pandemic on cancer diagnosis and treatment will not be fully understood for several years. However, the Cancer in Australia 2021 report by the Australian Institute of Health and Welfare suggests that during the COVID-19 restrictions, fewer people may have been diagnosed with cancer than would have been the case under normal circumstances. This would explain the slight decline in cancer as a cause of claims during the early stages of the pandemic, followed by a rise in late-stage diagnoses as lockdowns lifted and cancer claims increased.

Research indicates that cancer patients are more likely to experience mental health conditions and vice versa. This suggests that SC claims for both cancer and mental health could continue to rise beyond the initial COVID-related spike in each condition.

Mental Health: Examining the Data

Over the last decade, the number of mental health-related disability claims has increased, with mental health being the primary cause in 2019 and 2020. This rise can be attributed to factors such as anxiety, isolation, and work-life pressures.

Although mental illness claims have since dropped to second place, research from the Employee Assistance Program providers indicates that over one-third of Australian workers are at high risk of mental health issues, which is three times higher than pre-pandemic levels.

After peaking at 28.9% in 2019, the proportion of mental health challenges claims has decreased, falling to 16.1% in 2022.

The question arises: Will this trend continue?

Working-from-home arrangements, introduced as a response to COVID-19, have had varying impacts on different groups of people. For some employees, these new working styles have likely contributed to the decrease in mental health claims in 2021 and 2022, as they enjoyed improved work-life balance. However, for others, it may have had a negative impact, especially women who generally shoulder more household responsibilities in addition to their jobs. Younger people are also at higher risk due to feelings of isolation from workplace disconnection.

While productivity remained high during the lockdown period, with less time spent on commuting, some employees worked longer hours. Should organisations expect these productivity gains to persist when employees return to the office, it could lead to a rise in mental health claims due to burnout.

Another potential factor contributing to an increase in mental health claims is the stress of dealing with long COVID. Testing, diagnosis, and living with this condition can take a toll on various aspects of health and wellbeing. Delays in elective surgeries during the pandemic have also resulted in people living with health conditions for longer, which could further contribute to mental health claims.

The causes of claims across sectors align with the general industry trend, except for the energy power and resources industry. In this sector, musculoskeletal claims peaked in 2018, 2021, and 2022, while the proportion of cancer claims has declined in the three years since 2019. Mental health claims, on the other hand, follow a trend similar to the general market over the same period.

MAINTAINING EMPLOYEE HEALTH AND RETURN TO WORK RATES 

The Aon report provided three key insights:

1. Mental Health offerings such as EAPs and MHFA can support early notification

Early notification of a medical condition provides employees ample time to seek treatment and recover before their condition deteriorates. This proactive approach can expedite their return to good health and work, contributing to a more favourable outcome.

During the COVID-19 pandemic, Employee Assistance Programs (EAPs) emerged as critical support for employees struggling with mental health. EAPs provide immediate support and referrals to health services, ensuring employees receive the necessary assessment and treatment.

Many workers feel less supported by their employers regarding mental health compared to earlier in the pandemic. This underscores the demand for adequate mental health support. EAPs can connect employees with services that reduce the risk of severe health conditions when faced with economic and financial uncertainty.

Mental Health First Aid programs contribute to employee knowledge and awareness. By enhancing mental health literacy and reducing stigma, Mental Health First Aid training fosters organisational and employee resilience, improving outcomes and help-seeking behaviours for those affected by mental health issues.

2. Review WFH policies 

The surge in remote work during the pandemic contributed to higher return-to-work rates. Flexible work arrangements can reduce travel time and stress, making it easier for employees to return to work after recovering from health conditions.

3. Review health and benefits offer 

In today's evolving corporate setting, organisations must continuously evaluate the efficacy of their employee and wellbeing offerings. This review ensures alignment with the organisation's Employee Value Proposition (EVP) and is critical for attracting and retaining talented individuals essential to achieving strategic goals.

Furthermore, the concept of wellbeing has transformed as employees crave a sense of belonging and a workplace where they can be their authentic selves and feel accepted. Accordingly, the perception of employee wellbeing has broadened to encompass factors like flexibility and annual leave policies that prioritise work-life balance and promote opportunities like volunteer days.

During the pandemic, numerous organisations realised that their employee benefits and wellbeing programs needed to be revised to offer the intended level of support.

You can download the complete Aon Leveraging Data to Deliver on Workforce Resilience Report here.