As the holiday season approaches, retail staff across Australia brace themselves for what is often the most stressful time of the year. While Christmas and Boxing Day sales bring record-breaking foot traffic and revenue, they also bring heightened pressure, customer aggression, and emotional strain for frontline workers.
Recent research highlights the urgent mental health challenges facing frontline industries like retail. According to EML Group’s (EML) Inside the Minds of Australia’s Workplaces white paper, nearly one in three Australian workers – over four million people – reported having a mental health condition lasting at least six months in 2022, with anxiety disorders (23 per cent) and mood disorders (14 per cent) being the most common. Workers under 25 years of age are almost 2.5 times more likely to report a mental health condition than older workers. The report highlights the retail industry as a high-risk sector due to elevated levels of distress, burnout, and exposure to customer aggression.
Complicating the data set further is that physical assaults or violence are often reported as a primary physical injury, whilst the secondary psychological impacts sit under the surface, posing a real challenge for claims management and return to work.
Workplace safety and risk principal, EML, Keith Govias says: “We’ve seen a significant rise in claims related to verbal abuse and physical aggression, and we anticipate claims to increase further as a result of the festive period. Staff are under immense pressure and deal with hostile behaviour on a regular basis, and it takes a serious toll on their mental health.”
Additionally, a survey by the Victorian Chamber of Commerce and Industry revealed that the escalating crime wave in Victoria has left nine in 10 employers concerned about staff safety.
The Community Safety and Business Impacts Survey, completed by more than 1400 businesses from a diverse cross-section of industries, locations and business sizes, shows widespread concern with nearly half of all businesses (49 per cent) saying safety and antisocial behaviour have worsened in the past year.
The survey highlights theft, vandalism, customer abuse, and drug-affected behaviour as key issues impacting business operations. This is leading to staff experiencing mental health issues, leading to increased leave, WorkCover claims, and decreased morale.
The reality behind the festive cheer
While shoppers enjoy discounts and festive deals, retail workers often face:
- Extended working hours and unrealistic performance expectations.
- Increased volumes of customer interactions, often under stressful conditions.
- Incidents of verbal and physical abuse from frustrated shoppers.
These factors lead to increased risk of poor mental health, resulting in increased stress-related claims, highlighting the urgent need for better support systems.
Govias adds: “We often see ill and injured workers in retail tend to push through the Christmas period, given the volume of work and not wanting to let their team down. Claims actually go down in numbers in December but spike again in January when the sales periods end, and people’s bodies and minds catch up with them.”
Mental health claims in retail are rising, and the implications extend beyond the individual:
- Increased absenteeism and staff turnover.
- Financial strain on businesses due to compensation claims.
- Long-term psychological impact on workers.
As a leading claims service provider, EML Group is urging retailers to:
- Adopt a public commitment statement for respectful workplaces.
- Implement tailored mental health support programs.
- Provide training for staff to manage aggressive customer behaviour and how to report incidents or escalate for support.
- Foster a culture of empathy and respect during peak shopping periods.
We’re committed to working with retailers to reduce the psychological toll on staff and create safer workplaces – visit our website to find out more.
