Psychosocial Hazards and Psychological Safety
What do they mean, and why all managers, directors and business owners can’t afford not to know.
Psychosocial Hazards and Psychological Safety are now front and centre in workplace health and safety laws, especially in NSW. Lets break down what they are, how they can affect employees and employers, and how to manage the risks.
Psychosocial Hazards are aspects of work design, organisation, management, or the social environment that may cause psychological or physical harm.
Psychosocial Risks are a risk to the health or safety of a person from a psychosocial hazard.
Psychological Safety is a workplace environment where employees feel comfortable taking interpersonal risks, speaking up about concerns, and challenging the status quo without fear of negative consequences.
Effects on employees
A psychologically unsafe workplace, or one with unmanaged psychosocial hazards can increase the risk of work related stress, anxiety, depression, burnout, reduced confidence, and post-traumatic stress. These psychological impacts may also contribute to physical health issues such as high blood pressure, and cardiovascular disorders
Effects on a company
NSW Work Health & Safety Amendment Act 2023 now includes psychosocial hazards in the definition of workplace risks that must be managed like any other safety issue.
If you're running a business or undertaking work, even as a sole operator, you’re likely to have obligations to manage workplace health and safety, including managing psychosocial risks.
You can now be held liable, with legal consequences and penalties, not only for physical harm, but for psychological injury caused by unmanaged psychosocial risks.
Failing to address psychosocial hazards also has many other hidden costs:
Absenteeism due to psychological stress.
Employee disengagement which decreases productivity.
Toxic behaviour left unaddressed causes distrust in employees.
Employee resigns taking their knowledge, and possibly clients with them.
The ripple effect of someone resigning: low morale and loyalty, trust erodes, and quite often it triggers more resignations.
Psychological safety drops: People are less likely to speak up, take risks, or ask for help.
The financial impact of someone leaving. To replace a mid level employee can
cost between 50%-100% of their annual salary.
The cost of your reputation.
How to manage the risks
Step 1 - Identify hazards that may cause harm to mental health
Regular one on one check in’s
Anonymous employee surveys & pulse surveys
Observing signs of distress
Monitoring workloads, silence in meetings, withdrawal
Monitoring sick or stress leave
Staff turnover, exit interviews, complaints or concerns.
Step 2 - Assess the Risks
How severe is the risk?
How often is the employee exposed to the hazard or risk?
How long is the employee exposed to the hazard or risk?
Who is at risk? Are there any patterns e.g. new staff, remote staff, younger team members
Are there any existing controls and are they working?
Example: high job demands over weeks or months is higher risk than a few days.
Step 3 - Control the Risks
Safe work Australia use the well established framework “Hierarchy of Control for risks”
If its practical, eliminating the risk is most effective. If its not reasonably practical, minimise the risk with as many control measures as practical. Creating a psychologically safe culture will encourage open communication and help identify risks early.
Step 4 - Review Control Measures
It’s important to evaluate and review. The same methods as the initial “Identify Hazard” can be used to check control measures e.g. talk to your employees, employee surveys, tracking trends in absenteeism, complaints etc. Reassess risks every 6-12 months.
Summary
Putting strategies in place to prevent psychosocial hazards and adopting a psychologically safe culture isn’t optional for companies, it’s essential.
Overlooking them could cost your business more than you realise.
Need help identifying and managing psychosocial risks? I offer tailored psychosocial risk assessments and strategies for small and medium sized businesses. Get in touch to find out how I can support your workplace. heidi@crawfordbrown.com.au
References : www.safeworkaustralia.gov.au
Disclaimer:
This article is intended for general informational purposes only and does not constitute legal, psychological, or professional advice. While every effort has been made to ensure the information is accurate and up to date, it should not be relied upon as a substitute for specific advice relevant to your organisation or circumstances. For tailored guidance and compliance, please get in touch.