Proactive risk management needed to avoid wave of mental health claims

Companies must take a proactive approach to employee wellbeing as mental health issues and stress climb during the pandemic. Mental health and wellbeing risks for employers are likely to increase in the pandemic, explained Adam Shelverton, rehabilitation manager at QBE Europe. Even before the pandemic, absenteeism and presenteeism in the UK alone cost an estimated £20bn to £27bn per year, a figure that is likely to have risen as the result of Covid-19, he said. “The challenge of mental health has always been there, but the pandemic has raised awareness and the risk. But it has also made it even more difficult to address, with remote working making it more challenging to engage and support employees,” said Mr Shelverton. “Work-related stress could take on a new dynamic with people working from home. The ‘nine to five’ is blurred and people will have to balance work around daily life and the pandemic. They may also be working in a situation that is less than ideal, with poor ergonomics or space in which to work, which could lead to physical injuries and mental health issues down the line,” he said. Mental health is now very much in the spotlight, according to Letitia Rowlin, associate director of risk at Willis Towers Watson. Recent analysis by the UK’s Centre for Mental Health suggests the pandemic is likely to increase the number of people in Britain experiencing a mental health issue in the next two years, she noted. Employers have a duty under the Health & Safety at Work Act 1974 to take care of their employees, including their mental health. This hasn’t changed as a result of the pandemic, said Ms Rowlin. Managing stress and mental health is often seen as a matter for human resources, but it is an issue for risk managers too, she continued. If employees are experiencing stress and poor mental health in the workplace, they are less likely to be able to manage other business risks effectively, she said. “Employees are operating under increasing pressures in both their personal and work lives as a result of the pandemic and the economic climate. As well as the detrimental impact poor mental health has on the individual, it can lead to poor decision making, increased risk of accidents and mistakes being made on the job. This is likely to negatively impact productivity at a time when organisations need to be strong and flexible to survive,” said Ms Rowlin. Coronavirus will potentially impact the wellbeing of the entire workforce, yet it will affect individual employees differently depending on their circumstances, said Mr Shelverton. “Work patterns and the nature of the workplace are changing with Covid-19, while individuals face their own individual challenges as they juggle the stresses of work and life. The line between work and home life will be less well defined with flexible and home working, which will bring mental health and wellbeing to the fore,” he added. Employers face a major challenge to deliver wellness strategies, made harder by Covid-19 measures and remote working, explained Mr Shelverton. Companies also have little guidance and will find it difficult to benchmark their wellbeing performance. “One of the challenges for employers is that there is no roadmap,” said Mr Shelverton. QBE is currently working on wellbeing guidance to assist its customers, he added. He said any investment in employees’ mental health and wellbeing is estimated to return between five and six times the upfront costs. “The challenge is to keep employees engaged, productive and resilient in the months ahead. Resilient employees will be key for businesses to respond in the pandemic and thrive. Companies will need to invest in employees. They will need skills of resilience, and tools to help them cope,” said Mr Shelverton. He urged companies to be proactive and monitor the mental health and wellbeing of employees. “It will be remiss of them to assume the wellbeing of staff. They will need to actively monitor staff and invest in building employee resilience. Educating employees and giving them the tools to cope will help, while companies need to think longer term about what the workforce will look like from the employees’ perspective, as well as customer needs. Making the wrong assumptions will store up problems for the future,” he said. There is potential for more stress claims as a result of Covid-19, which could impact employers liability insurance or result in uninsured losses, according to Ms Rowlin. For example, demands on employees remaining in work may have risen and lead to claims of ‘overwork’. Being required to work in environments where social distancing measures are not enforced by employers may increase the risk of an employee experiencing a psychiatric injury. There is also potential for claims from workers who say they are being forced to come back to work by their employers when they say their work can be done at home, or where they have a medical condition impacted by Covid-19. “We have heard the term ‘anxiety’ used a lot in connection with the pandemic, and for many this anxiety is part of the normal human experience, but depending on severity, for some it could be classed as a disability, meaning the need to make reasonable adjustments kicks in,” said Ms Rowlin.

Proactive risk management needed to avoid wave of mental health claims

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