Almost half of Australian workers surveyed would accept a pay cut for a job that was genuinely better for their mental health, according to new research from EML. Inside the Minds of Australia’s Workplaces 2026: Making Work, Work Better is the third report in EML’s Insights Series. It draws on EML’s survey of 4,065 workers and 831 managers and leaders, alongside the analysis of four national datasets by Monash University’s Healthy Working Lives Research Group.
I can’t think of another Australian dataset that brings together this breadth of information on mental health and work. What makes it particularly valuable is the inclusion of both worker and employer perspectives.
The research puts many of the same questions to workers, managers and leaders, providing a detailed view of workplace mental health and psychosocial risk in Australia. It shows broad alignment on the importance of mental health at work, but a gap between awareness and action: only 58% of managers and leaders expect their organisation’s investment in mental health to remain unchanged over the next year, while only one in five expect it to increase.
The hidden impact of psychosocial risk
The findings show that workplace mental ill-health is not visible through workers compensation claims or absence data alone. Its impact also appears in employee retention, presenteeism, leave and workforce participation.
Thirty-four per cent of workers surveyed said they had left a job because of its impact on their mental health, while 25% had seriously considered leaving their current role in the past year because of mental health pressures. Two in five workers had taken at least one day off in the past year due to their mental health, but only 25% had told their employer why.
Disclosure remains a challenge. Forty-five per cent of workers said they were not comfortable disclosing a mental health condition to their employer, and just 29% said they would be likely to lodge a workers compensation claim if work seriously harmed their mental health. A further 41% reported that they had sometimes, often or very often worked while struggling with their mental health because they felt they could not take time off.
Why better job design matters
The report shifts the workplace mental health conversation from awareness alone to the conditions in which people work. It highlights how high demands can combine with low job control, unclear roles and limited support to increase psychosocial risk.
Only 56 % of managers and leaders surveyed agreed that workloads in their organisation were sustainable over the long term. Managers also face pressures of their own: 22% reported losing sleep because of work often or very often, compared with 14% of employees without management duties.
EML Group Executive Dan Walton said the findings highlight a hidden cost for employers, with psychosocial risk appearing not only in claims but also in retention, on-the-job productivity and leave. The research suggests intelligent job design can help mitigate mental health risks by giving employees reasonable control, clearer expectations and the resources and support needed to succeed.
The future of workplace mental health will be shaped not by how much we talk about the issue, but by how effectively we redesign work, manage psychosocial risks and support people before harm occurs.
Key workplace mental health findings
46%
would accept a pay cut for a job that was genuinely better for their mental health
34%
have left a job because of its impact on their mental health
2 in 5
have taken at least one day off in the past year due to their mental health
45%
are not comfortable disclosing a mental health condition to their employer
58%
of managers and leaders expect mental health investment to remain unchanged over the next year
25%
of workers have seriously considered leaving their current role in the past year due to mental health pressures
Turning workplace mental health research into action
The report identifies three priorities for employers: design healthier work, equip managers to intervene early, and identify where psychosocial risk is concentrated so the response can be matched to the problem.
This means looking beyond awareness training. Employers can examine where high demands combine with low control, use workforce data such as absence, turnover, disclosure, exposure and recovery indicators, and give managers the authority, tools, systems and support to act early.
Explore the resource hub
The 2026 report is supported by the Making Work, Work Better resources hub, which helps employers translate workplace mental health research into practical action. Through the hub, organisations can:
- complete an interactive job design risk quiz
- access manager conversation guides for earlier, more confident mental health conversations
- explore practical resources and workplace training aligned to the findings
- download the research in formats ranging from the comprehensive report to a one-minute summary
- use an AI-powered insights assistant to ask questions and navigate the research.
Building a stronger evidence base
EML plans to repeat the worker and manager survey each year, building a longer-term evidence base to track how workplace mental health evolves over time.
Developed through EML’s Mutual Benefits Program, Inside the Minds of Australia’s Workplaces 2026: Making Work, Work Better combines workforce experiences, national data and practical tools to help employers, leaders and policymakers create healthier, safer and more sustainable workplaces.
