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Ways Remote Working is Damaging Your Mental Health

Mental Health in the Workplace

11 Mar 2025 (Last updated 3 Sept 2025)

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Remote work came as a blessing for several workers, especially caregivers. It meant spending quality time with children, with families, and saving time and costs on the long commute to work. But new research has highlighted the potential disadvantages of remote working or permanently working from home. There are 37% Aussie employees working from home. Within this group are home based workers, basically men and women who work at home for pay, according to the classification of an employee or an intermediary.

Black Dog Institute explained that majority of employees working from home have experienced negative impacts such as isolation, loneliness, and difficulty in separating work and personal life. However, it can be hard to understand the origin of these negative effects and how to particularly fix them. Employees are increasingly demanding remote working opportunities or seeking jobs that allow them to work from home. Many employees claim that it allows for better work life balance and greater autonomy. Like every method, it has its benefits and disadvantages. Working from home or working remotely for increased time periods can damage your wellbeing.

Working from home and mental health

 69% of remote workers report increased burnout from constantly being accessible and using digital communication tools. It leads to mental fatigue, due to a lack of clear boundaries. More than two-thirds of remote employees reported they have trouble getting away from work at the end of the day. They have trouble finding that elusive work life balance. Remote work is associated with ambiguity around role and feedback which could potentially increase emotional exhaustion. While WFH or remote work has been around for a long time, recently we have begun to see a sizeable shift and change in attitudes. This has also led to a discovery that working remotely may have long-term implications for mental wellbeing.

Other common risks include

  • Feeling isolated
  • Feeling disconnected- socially and professionally
  • Unable to stay motivated
  • Unable to prioritise workload
  • Uncertain working hours
  • Unsure about performance and career growth
  • Inability to take mind off work
  • Anxiety
  • Stress
  • Depression

How can you improve wellbeing while working remotely?

Your mental wellbeing is impacted by a combination of factors. There are factors you can control and factors that outside your control. The things you can directly control are things you should focus on while trying to improve your wellbeing.

A separate workstation

It can be extremely easy and convenient to just work from your bed or the couch. Due to a lack of space or home arrangements, employees resort to working at the dining table or coffee table. Your workstation can have a negative impact on your work performance and productivity. A poor setup can make it difficult to separate work and personal life, leading you to check emails after work hours. Small screens can also result in poor posture, eyesight, and cause headaches. According to a report, only 33% of employees who work remotely have a dedicated room for working from home, and half of those employees have to share that space with another person all day. A separate workstation can help you set boundaries and reduce stress by allowing you to have the quiet time you need to work.

Effective management

Only one in five employees feel their employers are actively supporting their mental health. Employees want to stay connected with their feelings and they need the support from their employers to do so. They are also nervous about taking time off for mental health reasons as they believe their employers might not understand. Business owners should create an atmosphere of trust and honesty within your company. For remote employees, this becomes exceptionally important as they need reassurances and support regularly compared to office-based employees. Employees should feel they can talk to their managers or their co-workers about their mental health anytime. Allowing this dialogue will lead to increased satisfaction among employees and result in higher productivity.

Physical health

When you work from home, your physical health and wellbeing determines your mental health. Your home environment contributes to the physical aspects of your wellbeing. Working in a poorly designed setup can affect your physical and mental health and stress you out. Stopping your workflow or sitting in chairs not meant for long-term sitting or working can increase the risk of physical injuries. It can also exacerbate existing problems that employees didn’t know they had such as depression or anxiety. Remote working can also lead to extended hours as employees have trouble switching off.

Many employers offer reimbursement for home office equipment which can have positive impacts on the physical health of employees.

Roommates or co-workers

While working from home, your mental health is also dependent on who you’re living with or who your ‘co-workers’ are. Whether it is a roommate, spouse, parent, dependent, child, or a pet, you will spend a considerable amount of time with them. Employees end up being interrupted or having to change their schedule to fit the needs of their families while working from home. Those who have to readjust their schedules or work hours around their families were more likely to report mental health conflicts.

A dedicated workspace can support your home environment and reduce the stress employees feel while juggling work and home at the same time.

Benefits of remote working

Remote work has been a gamechanger for many workers and they have no plans of going back to being office-based fulltime. Parents have more time to spend with kids and not feel guilty of missing out on important moments in home life. A range of positive benefits are associated with remote working such as reduction in travel time, reduced fatigue and reduction in costs associated with travel, food, fuel etc. It can also empower caregivers or senior employees to return to the workforce. People with disabilities who may otherwise not have enough opportunities for paid work find remote working a boon. It can reduce expenses for business owners by allowing them to reduce office space and extras.

Finding the balance

The evidence around permanent work from home or remote work indicates that people’s preferences and their subjective well-being are a key factor in whether remote work affects their mental health. It is also worth noting whether the benefits of remote working override the downsides like mental health issues such as anxiety and isolation. Different demographics will experience remote work differently. Young mothers, caregivers, disabled people will benefit from working from home. Younger workers, people who live alone, or are new to a city may benefit from being office-based. Working from home also depends on the job characteristics in question.

Finding the balance can be tricky but it’s vital to remember that people’s feelings about remote work are complex and layered. They might also change over time. Many workers in the early stages of their career may benefit from the social and emotional contact of the office. While when the same worker is ready to start a family, they may need a flexible work schedule and remote working arrangements. There is no one-size fits all solution and employers should remember to not fall in the trap of being rigid.

Challenges of hybrid work

Experts suggest that companies are being pushed into going fully remote as hybrid work is complex to manage. One of the important contributors to this choice is the rapidly shrinking talent pool. Businesses are afraid that staff may leave for remote-first or flexible jobs and want to ensure they don’t lose out on talent.

Trying to ensure Zoom calls are working during meetings and logistical complications that arise with different people having different work from home days are also making businesses wonder if it’s worth the stress at all. While going fully remote works for industries that do not need extensive collaboration, it may not have the same benefits for industries that need connection and collaboration. Customer facing industries such as hospitality or retail can’t have a fully remote workplace.

Full-remote set-ups can have negative impacts on new employees. There are potential challenges with onboarding and relationship management.

What can employers do?

Within this debate, there is one thing that is clear. Businesses need to adapt. It is very hard to predict what works and what doesn’t unless you are prepared for any eventuality. There is a significant lack of data around the benefits of any approach for the long-term. Companies are rolling the dice and taking the risk on what they believe suits their needs currently.

Having policies and processes in place to implement remote working can help improve mental wellbeing of employees. By ensuring that employees get a balance of remote work and being in office, business owners can support mental wellbeing and health of their staff. Where possible, employers should have official policies regarding working from home or remote working. It will also allow them to manage staff performance and set boundaries around work life balance.

Peninsula has worked with thousands of business owners across Australia in implementing policies and procedures. Call our advice line on 1300742953 today to get all your questions answered.

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They should regularly check in with each other and encourage teammates to seek professional help if needed.  Individuals: Frontline healthcare workers should take care of their own mental health by getting enough sleep, eating a healthy diet, and exercising regularly. They should stay connected and talk with friends, loved ones or other people they trust for support. Finally, they should also seek professional help if it’s all too much to cope with.  It’s also important for frontline healthcare workers to remind themselves:  It’s normal to feel stressed in their situation  Finding the pressure too much to handle is not something to be ashamed of  It’s okay to talk to a leader if work hours become unmanageable  They are not responsible for single-handedly solving everyone’s problems  Their well-being is just as much of a priority as the well-being of their patients  Mental health resources for frontline healthcare workers   There are a range of mental health resources available to frontline healthcare workers in Australia:  Beyond Blue: Beyond Blue is a national mental health organisation that provides information and support to people with mental health problems. Their website has a dedicated section for frontline healthcare workers.  Lifeline: Lifeline is a national crisis support service that provides confidential support to people in distress. They can be contacted on 13 11 14.  The Black Dog Institute: The Black Dog Institute is a research and education organisation that focuses on mental health, with a dedicated section on their website for frontline healthcare.  R U OK?: R U OK ? is a national campaign that aims to start conversations about mental health. Their website has a dedicated section about how to discuss mental well-being in frontline healthcare.  Get employment relations support with Peninsula If you’re unsure about your mental health obligations as a business owner, Peninsula can help. With our expert advice and practical support, you can create a safe, healthy and supportive work environment for all your employees to thrive in.   If you have a question about your responsibilities as an employer or business owner, contact Peninsula for free initial advice today.  

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