27 August 2024

Too many unfounded psychological injury claims are hurting the system and the public purse

| Chris Johnson
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Psychological injury claims at work are on the rise and that’s not the sign of a healthy system. Photo: Fizkes.

Last week, Comcare held its national conference for two days in Canberra, with the theme of ‘collaboration for prevention and change’.

The program was well-considered and comprehensive, complete with a list of compelling speakers and informative presentations.

Of the news coverage Region did for the conference, the most widely read report was the one titled Psychological injury claims on the rise across the public sector.

It was one of the most popular stories across the board in Riotact and PSNews last week.

Reader comments attached to the article reveal quite a high level of engagement with the topic and an array of varying opinions. So with the news of it duly reported, here, in this op-ed, I am going to offer up an opinion on the subject – and not everyone is going to agree.

My opinion? Work-related psychological illness is definitely a real thing, but the system is being rorted. It’s out of control.

There are jobs where the work involved poses a high chance of mental injury.

Emergency services, first attenders, military, law enforcement, and those whose work it is to peruse unthinkable images in order to try and prevent further atrocities from occurring.

The list is longer than that and can be added to, but suffice to say, some jobs almost invite a psychosocial impact – and in some cases, even post-traumatic stress disorder.

But when a public servant submits a compensation claim to insist they have been psychologically injured because they lack clarity in their role, or because a supervisor expressed frustration that their work had missed a deadline, or because they’re not getting enough recognition, then something is wrong with the system.

When these claims are taken far more seriously than they should be, it’s a sign something is seriously broken.

And when laws are enacted to ensure an endless stream of frivolous claims, it’s a sign of a government with its eye off the main game.

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A psychosocial hazard is regarded as anything that could cause psychological harm, or in other words, something that could damage someone’s mental health.

That definition is almost open slather, resulting in some employees unscrupulously exploiting such vagueness and getting away with it.

‘Psychological justice’ is another term being bandied about without anyone – least of all those who are supposedly enforcing it – appearing to understand what it actually means.

It’s not only in the public sector, of course.

I know of a middle manager in an overly woke private sector firm who was informed by their boss that someone had said they felt ‘psychologically unsafe’ being in their team.

When the middle manager asked the boss what that meant, the reply was, “Who knows, but we’re going to have to send you on a people management course”.

At least in the public sector, attempts are being made to educate managers on what psychological harm might actually be.

Still, I receive numerous reports of APS managers having to step away from their actual work for days in order to answer a single allegation of psychological harm.

Instead of serving the public, they are being forced to serve the system and scrutinise every correspondence between them and their complainant – emails, texts, meeting notes, verbal instructions, casual encounters – and complete lengthy reports on all of it in order to prove they hadn’t been out of line.

All the while, they are being told by their own supervisors that “we know you haven’t done anything wrong”.

Don’t get me wrong – there’s no place for bullies in the workplace and those who are should be called out and held to account.

Bullies most certainly can and do inflict psychological harm.

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As reported, the term ‘psychosocial disease’ is being increasingly heard right across the public sector and compensation claims for psychological injury are on the rise.

Comcare is doing the right thing – it is trying to educate the service to prevent the risk of psychological harm in the first place.

Almost a whole conference was dedicated to it.

Comcare has the numbers and knows that it’s much cheaper for taxpayers and a far better outcome on all fronts if proper preventive steps are taken to protect people’s mental health.

As Comcare’s scheme manager Michael Duke told last week’s conference: “Mental health issues are now the most prevalent types of claims.”

Psychologists in the workplace do add value, particularly if prevention and help are the focus.

But a system structured around conflict, blame and payouts is fraught.

I will wind up with this thoughtful comment submitted to me by Katrina Norris, director of the Australian Association of Psychologists – who clearly doesn’t agree with all the points I have just made (but a few, yes).

“When it comes to reducing claims and building psychologically healthy workplaces, prevention is key,” Dr Norris said.

“It is commendable of Comcare to prioritise prevention over other cost-cutting methods, such as restricting psychological claims criteria, as has been the approach across other jurisdictions.

“Implementing strong prevention campaigns and strategies requires clear definitions and understandings of the psychosocial hazards present in each workplace, which may vary across departments.

“Our hope is that the public service will utilise psychologists’ skills to build a strong culture of psychosocial health and well-being across their departments and agencies.”

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Good article. I’m glad someone finally called out the rorting of the system. But what can you expect when we have created this victimhood mentality in this day and age where everyone is a victim somehow.

The Workplace Coach2:25 pm 03 Sep 24

Good article. I do feel that it has become far too easy for disgruntled employees to lodge a claim for psychosocial injury. Unfortunately (or fortunately), many of these cases could have been avoided if managers were a bit more skilled at having the ‘difficult conversations’.
I always ask managers, who are contemplating providing feedback or having a performance discussion, is their intention to build the relationship with their direct report or to damage it? The answer should inform their approach.

Maybe we should stop encouraging people to be giant sooks constantly? Hurt feelings are not a disability. If you can’t cope with adversity, you need to harden up.

People aren’t successful with claims of hurt feelings, just with evidence of real harm.

Ken M – I trust that with your focus on hardening up that when you break your leg you will continue to walk on it without any medical treatment, leg brace, plaster cast or other support? You will cope with adversity without any cost.

Yes, they do, and a broken leg isn’t a fake injury like hurt feelings are.

There has to be evidence of psychological harm for a case to succeed, not just hurt feelings. Do you really believe any insurer would pay out on a claim without evidence of harm? There is no legal or commercial reason to do so. The fact that you don’t have the tools to assess the issues, doesn’t mean they don’t exist. Professionals have the tools to check out the validity of the claim and you can be sure they do so. You just lack the ability to believe something you can’t see due to your lack of skill, as if you are the expert on all things.

Your assumption is wrong here *psycho – Insurers in the ACT commonly pay out claims or settle without evidence of harm, this is probably why our workers compensation insurance rates here are the highest in Australia. It is always cheaper to make a settlement on any claim than it is to go down the legal pathway in the ACT.
Those no win no fee lawyers with gold teeth really know how to play the game here.
Just the mention of a sore back or hurt feelings, sit at home for six months, attend a couple of meetings, claim you really want to get back to work (even though your already working elsewhere) and your in for $100k minimum, the ACT is the absolute worst jurisdiction for this, I don’t know how private business can afford to operate here in Canberra.

Gregg Heldon4:20 pm 28 Aug 24

The hardest thing in the world to do, is to put your hand up and ask for help. But it’salso the best, and bravest thing you can do. Ihaveno doubtthat if I hadn’t, I’d have killed myself, or died trying. It helps yourself, and others around you to do so. I would say that my therapy has been mostly successful. It has helped me help myself. If you don’t understand that, then maybe you’re the soft one who needs to harden up.

Clearly the senior management in the ‘overly woke private sector’ firm lack knowledge and skill in people management. The middle manager sought help from his superiors who were ill-equipped for the task. Leadership and management training is either inadequate, or more commonly non-existent. Many organisations are failing to train their staff in the skills they need to do their job, with their role models equally unskilled. The result is failure in managing people and work well. We know that businesses are not investing in training their people as they seek to cut costs and the consequences of these false savings are becoming obvious.

Whilst there a certainly frivolous claims in the public service, there are also a huge number of untrained, unskilled and incompetent managers who have no idea how to manage people well. There has been plenty of research showing this in the public sector as well as in private industry.

There is a belief that people don’t need training to be good managers, yet research shows the opposite as most people have limited understanding of human motivation, emotion, cognition and behaviour. Few know how to influence a person’s behaviour in a positive way, instead often being aggressive and directive which causes resentment and demotivation.

Good people management is a skill that too few have learned. Consequently they harm their staff and the team performance, often without realising it and without knowing what they’ve done wrong.

Where conflict arises it is the result of poor or inadequate listening and communication leading to misunderstandings and unclear expectations.

Effective communication is a skill that needs to be taught, along with inspiring high performance in staff, rather than ordering them around. And then there is understanding individual human needs, which requires a manager to get to know their staff so they can best facilitate their efforts.

Blaming employees for the failures of their managers is ridiculous, but it happens all the time. Bad workmen blame their tools instead of looking at their own failure to perform well. Not everyone is capable of good people management.

The Workplace Coach2:28 pm 03 Sep 24

100% spot on.

It’s called the Peter principle.

Pretty good article.
As far as ordinary office type work goes (which doesn’t include the cops and ambulance drivers etc), I honestly think the whole thing has been overcomplicated. Go to work, do your job and at least be polite to those you deal with. Should something unpleasant happen to you during the day, chances are it will only be minor, and you’re going to have to identify this and deal with it undramatically. Go home and have something nice for dinner.
Anything more than this is only inviting trouble, not least because it involves the workplace trying to take the role of parent or teacher, or at any rate, make up for the lack of education in society in general, which should have a culture that helps people deal with life more robustly or whatever – a role that the workplace just isn’t equipped for and is therefore going to fail at spectacularly.

Managers can be trained to manage people effectively without causing harm, but businesses are not investing in their people as they once did, leading to poor performance, increased frustration and often aggressive communications leading to even more drops in productivity and wellbeing.

Until you meet the ‘manager’ who is a bully, or wise the office psychopath who absolutely exist. One would expect that more senior staff would ID the bully and step in but they don’t.

Unfortunately for those bullied, bullies manage upwards very effectively, convincing people they’re good guys. They only show their true colours when punching down to those over whom they have power and who may not be believed by those above.

Standard predator mode of operation. They charm those who have power, whilst attacking those who do not, knowing they’re safe to do so.

That’s the problem. Tooo many managers and not enough leaders.

Managers should be more aware of what is actually happening. Many aren’t.
The idiot manager who told me I was over reacting by refusing to leave the office when he told me to, is an example. The head of our security team said he wanted one of the guards to escort me to my car because I had received a death threat at work – where they described what I was wearing that day and I was 7 months pregnant at the time.
I wasn’t in one of the areas that is considered high risk.

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