New research from Allianz has revealed that Australian businesses are planning to spend big on diversity and inclusion practices and mental health support over the next 12 months in response to increasing reports of employee burnout and dissatisfaction.

Up to $27.8 billion had been earmarked for spending in this space, equating to an average of $38,771 per organisation surveyed. It comes as primary psychological Workers' Compensation claims nearly doubled over a five-year period, according to latest Allianz data.

According to the research, nearly half of surveyed Australian employees claimed to feel fatigued and burnt out, with over a third of employees considering leaving their current organisation within the next 6-12 months.

The research examined the experiences of workplace mental health and wellbeing by Australians, particularly focusing on diverse needs. Over a third of surveyed employees with a disability and two-in-five of surveyed employees who identify as neurodivergent said they have withheld information about their personal situation due to fear of being perceived poorly by their manager or organisation.

Nearly a third of surveyed employees reported feeling a lack of compassion from their manager towards their personal circumstances and how they impact their work. One in five surveyed employees with a disability have felt excluded due to their personal situation or characteristics.

A quarter of surveyed managers believe there's an 'empathy gap' in their workplace, where workplace challenges aren't handled with the level of care necessary for all employees. Nearly half of surveyed Australian employees say cost of living pressures are negatively impacting their job satisfaction. There has been a 47.5% increase in active claim volumes, and a 30% increase in the number of days off, due to mental health over the last five years.

The majority of managers surveyed believe they show empathy or compassion to their team regarding their personal circumstances and how they impact their ability to do their job effectively. One in five surveyed managers say their organisation is taking steps to address unconscious bias in their workplace. Surveyed employees called for improved opportunities for open and transparent conversations about individual workplace needs and clear communication channels to voice workplace concerns.

"Diversity and inclusion is so important within the workforce. It not only benefits individuals but also their teams, the organisation and society more broadly and at Allianz we believe in the benefits of a diverse and inclusive workplace that gives fair and equitable opportunities to all employees," said Chief General Manager of Personal Injury at Allianz Australia, Julie Mitchell. "Our research demonstrates how vital it is for organisations to understand the needs of all Australians participating in the workplace and adopt a proactive approach to mental health support. Only by doing so can organisations take advantage of a more productive and successful workforce."

Organisational psychologist and Co-Director of Transitioning Well, Dr Sarah Cotton, said: "Through our work, it's clear that managers are navigating a highly complex working environment, amongst a diverse workforce that is calling for workplaces to embrace the whole person."

"The business case for diversity, equity and inclusion is stronger than ever before and employees who feel respected and valued develop stronger relationships and become more engaged in their work," said Mitchell.