The Role of HR in Mental Wellbeing

If you think HR is only about ticking compliance boxes, you’ve missed the point. HR is about people. Mental Health Month is a reminder that behind every policy, every payslip, and every position description, there’s a person with a story, a family, and a life beyond work.

As HR professionals, we sit at a unique intersection: we influence leadership, protect employees, and shape culture. That gives us an important role to play in creating workplaces that don’t just meet legislative requirements but genuinely care for people’s wellbeing.

The State of Mental Health in Australia

The numbers tell a powerful story:

• 1 in 5 Australians experience a mental health condition each year (ABS 2022, latest national data).
• Almost half of Australian workers (47%) say their mental health is “less than optimal” (TELUS Health Index, 2024). That means every second person around you is struggling.
• 10.5% of all serious workers’ compensation claims in 2022–23 were for mental health conditions — that’s over 14,600 people (Safe Work Australia, 2024).
• These claims are COSTLY: Psychological injuries result in 4× more time away from work and 3× the compensation costs compared to physical injuries.
• And it’s getting worse: compensation for psychological injury has more than doubled in both cost and duration over recent years (National Baseline Report, 2023).

These figures aren’t just statistics. They represent colleagues, team members, and leaders who are struggling — sometimes silently.

HR’s Duty of Care

There’s a common misconception that HR is simply the “policy department” but HR is far more holistic than that. We are:

• Guardians of culture — shaping how safe, supported, and connected people feel.
• Advisors to leadership — ensuring psychosocial risks are taken as seriously as physical ones.
• Advocates for people — balancing the needs of the business with compassion and care.
• Change agents — embedding mental wellbeing into performance frameworks, communication, and leadership practices.

And let’s be clear: we also have a legal duty. WHS legislation now explicitly requires organisations to manage psychosocial hazards. Things like high workloads, bullying, or role ambiguity must be managed just as we would manage physical risks.

But more importantly, we have a moral duty. People spend a third of their lives at work. If our workplaces are harming rather than helping, we’ve missed our purpose.

That is why having the best outsourced HR Consultants now can support your business

Here are practical steps HR teams and people leaders can take to strengthen mental wellbeing at work:

1.Lead with people, not policy

Use policy as a foundation, but let culture and care drive action. A flexible work request, for example, is paperwork but also communicates trust.

2.Normalise the conversation

Leaders should talk openly about mental health, share their own experiences where safe, and show that it’s okay to ask for help.

3.Equip managers

Provide training on how to spot the signs of burnout, have supportive conversations, and make reasonable adjustments.

4.Review work design

Look at workloads, expectations, and role clarity. Prevention is always better than cure.

<p5.Support recovery

Make return-to-work plans flexible and compassionate. Recognise that recovery from psychological injury takes time and trust.

6.Measure and listen

Use tools like pulse surveys or wellbeing check-ins to spot risks early. But don’t stop there. Show your employees how their feedback translates into action. That transparency builds both compliance and culture.

Culture and Care: The LMHR Lens

At LMHR, we’ve always said: any HR firm can tell you what to do. We focus on giving you what you need.

That means:

• Listening to your people and tailoring solutions that work in your culture.
• Building systems that are compliant but human.
• Reminding leaders that people don’t just want a safe workplace — they want a workplace where they belong.

Workplaces that prioritise mental health see better retention, stronger engagement, and healthier teams. But more than that, they build environments where people can show up as themselves and be valued for who they are.

This Mental Health Month, let’s remember: mental wellbeing at work isn’t a side project. It’s core to how we treat people. As HR leaders, we have the chance and the responsibility to make our workplaces safe, supportive, and genuinely human.

Because when people feel cared for, they don’t just do better work. They live better lives.