Principals face new mental health laws

Legislation giving staff ‘the right to disconnect’ needs to be factored into how real estate agency offices are run

Recent updates to state and federal legislation mean the mental health of your team is no longer an optional extra for real estate employers. 

Fair Work legislation in every state now obliges employers to protect their employees from not just physical risk in the workplace, but psycho-social hazards.

New federal legislation also gives employees the right to disconnect from work. An employee may refuse to monitor, read or respond to contact or attempted contact from their employer or a third party outside of their working hours, unless the refusal is unreasonable.

Stiff penalties

This means every real estate leader needs to understand the risks associated with their business and take steps to mitigate them. They should also train their teams on how to reduce exposure to stress. 

Stiff penalties – including criminal prosecution in some instances – exist for breaches. The legislation also extends to holding the directors of franchise groups accountable.

Safe Work Australia defines psycho-social hazards as anything that can harm someone’s mental health.

Staff retention

Common hazards include:

• Demands of the job.

• Low job control.

• Poor support. 

• Lack of job clarity.

• Traumatic events.

• Inadequate reward and recognition. 

• Violence and aggression.

• Bullying.

• Harassment, including sexual or gender-based harassment.

• Conflict or poor workplace relationships and interactions.

Creating psychologically safe workplaces has significant business benefits, including:

• Productivity: The cost of lost productivity due to poor mental health-related illnesses is $39b annually in Australia. But when your team feels psychologically safe, there is a positive impact on performance. Teams who are encouraged to take calculated risks, share ideas, and experiment without fear of punishment are more likely to explore innovative approaches to problem-solving.

• Reduced stress: When open communication and feedback are valued, team members are less likely to feel overwhelmed or anxious about voicing concerns or seeking help. This sense of support and understanding translates to lower stress levels, allowing your team to focus their energy on the job.

• Staff retention: 85% of people seek psychological safety when considering a new job. Your reputation in the market will help them decide how your workplace compares to the one they are leaving.

• Higher engagement: When your team feels psychologically safe, they are more likely to be engaged in their work. They feel comfortable voicing their opinions and suggesting new ideas, leading to a greater sense of ownership and investment in their roles and responsibilities.

• Job satisfaction: When teams feel safe to be their authentic selves and express their thoughts, they experience a higher level of satisfaction with their work environment.