Allianz warns of rising workplace burnout in Australia
Allianz Australia has published research showing that nearly two million Australian employees are losing sleep because of work-related stress. Its claims data also points to a rise in psychological workers' compensation claims.
The survey of employees and managers found that 74% of workers believe their organisation lacks a clear strategy to reduce workplace burnout. Allianz estimated that 18% of employees often lose sleep because of job stress and pressure, equivalent to almost two million people nationwide.
The findings suggest a gap between employer spending and employee sentiment. Australian organisations are expected to invest AUD $36.2 billion in wellbeing and culture initiatives this year, based on responses from managers, yet many employees said they still do not see clear support structures in place.
Workers pointed to practical changes rather than broad programmes. Some 45% said they wanted mental health days and wellbeing leave, while 31% said they would value less administration and fewer other low-value tasks that add to cognitive load.
Office conditions also featured in the results. More than a third of respondents, or 35%, said better in-office benefits such as free coffee and lunches would help by giving staff more opportunities for social connection and a break during the day.
Flexible working remained a bargaining point for a minority of employees. Almost one in five workers, or 18%, said they would be open to negotiating their salary in exchange for flexible or hybrid working arrangements.
Claims pressure
Allianz's workers' compensation data showed a relative 17.3% increase in primary psychological active claims between the 2024 and 2025 calendar years. It also found that 42.3% of all psychological claims were caused by mental stress and work pressure.
According to Allianz, psychological injuries cost 2.7 times more than physical injuries. That adds a financial dimension to a trend that is becoming more visible across Australian workplaces, as employers face pressure to reduce absenteeism, staff turnover and compensation costs.
The research also suggested that strain at work is affecting employees beyond office hours. Allianz estimated that nearly two million employees hold negative feelings towards their work, while 15% said work demands were harming their relationships with friends and family.
Communication with managers emerged as another weak point. Three quarters of respondents said they did not have clear channels to discuss burnout with their manager, suggesting that even where wellbeing spending exists, employees may not feel able to raise concerns early.
The study was conducted online by YouGov and surveyed 1,016 employees in middle management and below, alongside 542 managers in senior management and above. The data was weighted by age, gender and region to reflect Australian Bureau of Statistics population estimates.
In response, Allianz has launched a burnout resource hub for employers and employees. The materials include video tutorials and guidance on workplace practices intended to help organisations address stress and job design issues.
Brianna Cattanach, National Manager Mental Health Strategy - Personal Injury at Allianz Australia, said: "We know organisations care deeply about their people, but there is a clear opportunity for leaders to incorporate employee feedback to improve their approach to workplace culture, job design and support. It is a critical time for Australian leaders and organisations to evaluate whether their current wellbeing and cultural initiatives are positively impacting employees.
"Our new research revealed that employees believe proactive mental health days, a greater focus on social connection and recovery opportunities, initiatives to address low-value work, and a focus on leadership capability would most improve their experience at work.
"By doubling down on the fundamentals of culture, job design and capability, organisations can start to truly turn the dial on workplace burnout."