In recent years, mental health and wellbeing in the workplace have stepped into the spotlight — and rightly so.
But alongside the rise in awareness has come a stronger push for accountability. Across Australia, new codes of practice and WHS regulations are making it clear: employers have a legal and moral duty to address psychosocial hazards at work.
So what exactly are psychosocial hazards? Why do they matter to your team, your compliance, and your bottom line? And what practical steps can you take to reduce risk and build a healthier, safer workplace?
Let’s unpack it.
Psychosocial hazards are factors in the workplace that can cause psychological harm.
Unlike physical hazards, these aren’t things you can always see or measure — but their impact is just as real.
They include things like:
Excessive workloads or unrealistic deadlines
Poor workplace relationships (e.g., bullying, harassment, conflict)
Lack of support or role clarity
Insecure work or job uncertainty
Trauma exposure (especially in high-risk industries)
Remote or isolated work
Lack of control over work
Poorly managed change or organisational restructure
Left unchecked, these stressors can lead to:
Burnout
Anxiety and depression
Decreased job performance
High turnover
Increased absenteeism
Legal risk and reputational damage
In short: psychosocial hazards affect not only the wellbeing of individuals but the sustainability of your business.
Most states and territories have updated or are in the process of updating work health and safety (WHS) regulations to include psychosocial risks.
For example:
In New South Wales, the Code of Practice for Managing Psychosocial Hazards became enforceable in 2022.
In Victoria, WorkSafe has released guidance for employers.
In Queensland, employers must identify, assess, and control psychosocial risks like any other workplace hazard.
Nationally, Safe Work Australia has updated the Model WHS Laws to include psychosocial hazards.
This means businesses are now legally required to manage psychosocial hazards under the same risk management principles applied to physical safety.
Beyond compliance, managing psychosocial risks brings major business benefits.
Your team is your greatest asset. Addressing mental health risks helps employees feel safe, supported, and empowered to thrive.
A psychologically safe workplace encourages trust, teamwork, and engagement — all essential for high-performing teams.
Psychosocial injuries are among the most expensive claims for workers compensation — with long durations and high return-to-work challenges.
When people feel mentally well and supported, they’re more focused, creative, and resilient.
Being proactive protects your business from potential claims and reinforces your commitment to ethical leadership.
Every workplace is different, but here are some of the most frequently reported hazards across Australian industries:
| Hazard | Example |
|---|---|
| High job demands | Unmanageable workloads, long hours |
| Low role clarity | Confusion about responsibilities |
| Poor support | Lack of guidance or leadership |
| Workplace conflict | Bullying, harassment, unresolved tension |
| Poor change management | Sudden restructures, lack of communication |
| Job insecurity | Fear of redundancy or contract uncertainty |
| Remote or isolated work | Lone workers, lack of social connection |
| Vicarious trauma | Exposure to distressing material or events |
These risks aren’t always obvious — and they’re not always intentional. But they do require intentional action to manage.
Creating a safe and mentally healthy workplace doesn’t require perfection — just a clear, consistent effort.
Here’s how to start:
Use surveys, focus groups, 1-on-1s, and incident data to gather insight.
Key questions:
What are the common sources of stress in the workplace?
Are roles, workloads, and expectations clear?
Do employees feel safe to speak up or raise concerns?
Not all hazards are equal. Consider:
How likely is the harm to occur?
How severe could the impact be?
Who is most at risk?
For example, a high-pressure deadline might be manageable short-term — but not if it becomes the norm.
Based on the level of risk, introduce control measures. This could include:
Adjusting workloads or rosters
Providing clearer communication and expectations
Offering mental health support or EAP services
Providing training on conflict resolution or respectful behaviour
Improving change management processes
Controls should be practical, tailored, and co-designed with staff wherever possible.
Track what’s working — and what’s not. Use staff feedback, incident reports, and performance metrics to continually assess your approach.
Make sure leaders regularly check in with teams, especially during periods of change or pressure.
At the heart of it all is culture. Foster an environment where:
It’s okay to speak up
Feedback is welcomed and acted on
Mistakes are seen as learning opportunities
Wellbeing is genuinely prioritised
This doesn’t happen overnight — but small, consistent actions build trust over time.
Managers are often the first line of defence when it comes to psychosocial risks. Here’s how they can lead the way:
Schedule regular check-ins that focus on wellbeing, not just workload
Ask open-ended questions like, “How are you finding things lately?”
Model healthy boundaries (e.g. finishing on time, taking breaks)
Address issues early before they escalate
Promote access to support services and mental health days
Offer flexibility where possible — and mean it
Remember: it’s not about having all the answers — it’s about creating an environment where people feel heard, seen, and supported.
Long hours, high physical demands, and tough deadlines
Macho culture can discourage speaking up
Risks: burnout, substance misuse, undiagnosed depression
Solution: Mental health toolbox talks, mental health first aid training, open-door leadership culture
Sedentary work, lack of variety, high KPIs
Poor communication between departments
Risks: disengagement, anxiety, isolation
Solution: Role clarity workshops, flexible work arrangements, team connection initiatives
Emotional labour, trauma exposure, heavy caseloads
Stretched staffing, lack of debrief time
Risks: vicarious trauma, burnout, PTSD
Solution: Structured peer support, supervision sessions, trauma-informed workplace practices
Psychosocial hazards aren’t just an HR issue or a box to tick for compliance — they’re at the core of how people experience their work.
And when we create environments that are psychologically safe, we don’t just prevent harm — we unlock the full potential of our people.
At Industry Partners Australia, we’re committed to helping members navigate these challenges with real-world tools, training, and peer support. Let’s work together to build safer, healthier, and more sustainable workplaces — for everyone.