NSW Workers Compensation Reforms: What It Means for RTW Hiring and Retention

NSW Workers Compensation Reform 2025: What It Means for RTW Hiring and Retention

The NSW Workers Compensation Legislation Amendment Bill 2025 has passed the Legislative Assembly and is set to reshape how organisations approach workers compensation, psychological injury claims, and return-to-work (RTW) programs across New South Wales.

For employers, insurers, brokers and self-insured organisations, these reforms are not just a legal change – they are a people and capability challenge. Teams will need stronger skills in:

• Managing psychological injury claims

• Early intervention and proactive case management

• Leadership capability that prevents issues before they escalate

At HAYLO People, we sit in the middle of this shift every day – talking to hiring managers, claims professionals and RTW specialists across NSW.

Here’s what the reforms mean for hiring, retention and workforce planning in workers compensation.

Psychological Injury Claims Are Reshaping NSW Workers Compensation

Psychological injuries have become one of the biggest pressures on the NSW schemes, and they’re growing faster than traditional physical injury claims.

Recent data shows:

• Around $1.7 billion has been spent on staff psychological injury claims in the five years to 2024.

• Psychological injury claims now account for a significant share of total claim volumes and costs across both the NSW Nominal Insurer (NI) and the Treasury Managed Fund (TMF) schemes.

Psychological injury claims are also increasing quickly, with NI psychological claims more than doubling since 2022, and strong growth across the TMF.

For NSW employers and insurers, this means:

• More time and resources spent on complex psychological and psychosocial claims

• Greater pressure on RTW outcomes, premiums and scheme performance

• A need to rethink the skills, experience and leadership within workers compensation and RTW teams

What NSW Workers Compensation Reforms Mean for Hiring

The NSW Workers Compensation reforms will amplify existing trends in claims management, RTW, WHS and people leadership. As psychological injury and psychosocial risk move further into the spotlight, we expect to see clear shifts in hiring profiles and talent demand.

1. Psychosocial and Psychological Injury Expertise Will Be in Demand

Case managers, RTW coordinators, injury management specialists and clinicians with deep experience in psychological and psychosocial injury will be increasingly sought after.

Job profiles and selection criteria are already shifting to include:

• Experience with psychological injury and complex claims

• Knowledge of psychosocial hazards and workplace mental health

• Strong communication, conflict resolution and stakeholder management skills

2. Early Case Management Skills Will Be Critical

The reforms reinforce what best-practice teams already know: what happens early in a claim often determines the outcome.

Employers and insurers will increasingly look for professionals who:

• Act quickly – initiating contact early, setting expectations and building rapport

• Work collaboratively with treating practitioners, rehabilitation providers and internal leaders

• Communicate with clarity, empathy and consistency

• Are comfortable using data, systems and reporting to track risk and outcomes

Roles where early intervention capability will be especially important include:

• Injury Management Advisors / Specialists

• Return-to-Work Coordinators

• Senior / Technical Case Managers

• Psychological Injury Case Specialists

• WHS and People & Culture roles with a strong RTW interface

Retaining Talent in NSW Workers Compensation and RTW

In a tightening market, keeping great workers compensation and RTW professionals is just as important as attracting them.

We’re seeing candidates value:

• Manageable caseloads and realistic expectations

• Access to specialist psychological injury and complex claims support

• Leaders who support wellbeing, development and career pathways

• Flexible working combined with structured team support and supervision

Organisations that adapt quickly to the reforms – and position themselves as employers of choice in workers compensation and RTW – will have an edge in both hiring and retention.

How HAYLO People Can Support Your NSW Workers Compensation Hiring?

At HAYLO People, we specialise in recruitment across:

• Workers Compensation and Personal Injury

• Return-to-Work and Injury Management

• WHS, HR and People & Culture

• Leadership roles within claims, self-insurance and RTW functions

We partner with:

• Insurers and scheme agents

• Self-insured organisations

• Public sector and local government

• Brokers, providers and corporate employers

If you’re reviewing how your workers compensation, RTW or leadership teams are structured in light of the 2025 reforms, we can help you:

• Map the skills and capability gaps in your current teams

• Define role profiles aligned to emerging psychological injury and RTW requirements

• Attract and secure specialist talent in a highly competitive market

• Build succession and leadership pipelines for long-term scheme performance

Talk to Us About NSW Workers Compensation Reform and Your Team

If you’d like to discuss how to align your recruitment, team structure and leadership capability with the NSW Workers Compensation reforms:

• Contact the HAYLO People team to talk through your current challenges

• Share your claims, RTW and workforce priorities for the next 12–24 months

• Let us introduce you to specialist workers compensation and RTW talent across NSW

We’re here to help you build resilient, high-performing teams that can manage the reality of rising psychological injury claims, deliver better RTW outcomes, and support the health and safety of your people.

Team NSW Workers Compensation Reform 2025 – FAQs

If you’d like to talk about how the NSW Workers Compensation reforms will affect your team structure, hiring strategy or retention plans, reach out to the HAYLO People team, and we’ll work with you to map the right talent solution.