Psychosocial Safety, what’s the big deal?
Psychosocial safety in the workplace is a crucial but often overlooked aspect of employee well-being. With increasing awareness and legal obligations, Australian businesses must ensure they provide a work environment that does not pose risks to employees’ mental health. This blog explores what psychosocial safety is, why it matters, and the implications for business owners.
What is Psychosocial Safety?
Psychosocial safety refers to the protection of employees from work-related stressors that can lead to psychological harm. These stressors may include excessive workloads, workplace bullying, harassment, lack of support, and unrealistic performance expectations. The Australian Work Health and Safety (WHS) regulations recognise psychosocial risks as legitimate workplace hazards.
Why It Matters for Business Owners
Legal Compliance – The team at Safe Work Australia make it clear that Australian businesses have a legal duty to provide a safe working environment, including managing psychosocial risks. Safe Work Australia’s Model WHS Laws require businesses to identify and mitigate these risks.
Employee Productivity & Retention – A workplace with strong psychosocial safety fosters better engagement, job satisfaction, and lower turnover rates. Studies show that psychologically safe workplaces lead to a 27% reduction in employee turnover. Source: Deloitte Report on Workplace Mental Health
Reduced Workplace Claims – Businesses that fail to address these issues may face workers’ compensation claims for psychological injuries, which can be costly.
Common Psychosocial Hazards in the Workplace
Unrealistic deadlines and excessive workload.
Employees have little say in how they complete their work.
Workplace bullying, discrimination, and exclusion.
Unclear expectations leading to stress and confusion.
Lack of managerial or peer support increases stress levels.
The Cost of Ignoring Psychosocial Safety
A report by PwC found that for every dollar spent on improving workplace mental health, businesses see a $2.30 return in improved productivity and reduced absenteeism. Source: PwC Report on Mental Health ROI
Conclusion
Ignoring psychosocial safety can lead to increased turnover, legal liabilities, and reduced productivity. Business owners must prioritise workplace well-being, not just as a legal requirement but as a strategy for success.
For expert HR guidance on creating a safer work environment, reach out to us at Be Still Consulting.
