New research links workplace inclusion and flexibility to employee mental health

Posted on 13 Sep 2023

By Greg Thom, journalist, Institute of Community Directors Australia

Feeling included by work colleagues and being employed in a flexible environment are two key pillars of employee mental health, according to new research.

Statistics released by the not-for-profit Diversity Council Australia (DCA) showed that workers in inclusive teams were six times more likely to report that work had a positive impact on their mental health than those who felt excluded from their teams.

DCA shared the early release data from its forthcoming 2023 Inclusion@Work Index to highlight the link between workplace inclusion and mental health in support of R U OK? Day on September 14.

Suicide prevention charity R U OK? encourages Australians to connect with people in distress, address social isolation and promote community cohesiveness.

DCA defined an inclusive workplace as one where employees of a diverse range of ages, races, cultural and religious backgrounds, genders and sexual orientations felt respected, valued, and able to contribute and progress at work.

The new data revealed company culture and management played a significant role in creating an inclusive workplace environment.

Workers and managers in inclusive “climates” were almost four times more likely to report that work had a positive impact on their mental health.

Flexible working arrangements were also found to positively affect employee mental health and were a key component of inclusive workplaces.

Other findings from the 2023 Inclusion@Work Index included these:

Workers who had access to the flexibility they needed to manage work and other commitments were almost four times more likely (45%) to feel their work positively affected their mental health than those who did not (12%).
Employees who experienced discrimination and/or harassment at work were twice as likely as other workers to report their workplace had negatively affected their mental health.
Members of inclusive teams were six times more likely to report that work had a positive or very positive impact on their mental health than those in non-inclusive teams.
About 53% of inclusive managers said work had a positive or very positive impact on their mental health compared to just 14% of non-inclusive managers.

DCA’s fourth Inclusion@Work Index, which has provided national benchmarks on diversity and inclusion for Australian workplaces since 2017, will be released in October.

DCA CEO Lisa Annese said organisations needed to understand the value of fostering more inclusive and diverse workplaces when it comes to mental health.

“How we are treated at work can have a significant impact on our mental health,” she said.

“If you don’t feel valued and respected at work, it can have major knock-on effects on your personal life and your mental wellbeing.”

Ms Annese said the new data clearly showed that organisations with a strong focus on diversity and inclusion tended to have a positive effect on employee mental health.

“If you treat people with dignity and respect, have a zero-tolerance approach to bullying and harassment, create some flexibility and have a supportive management environment, people flourish.”