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Psychosocial Hazards in the Workplace – An Employer’s Guide

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Psychosocial Hazards in the Workplace - An Employer’s Guide - Diversity Australia

Psychosocial Hazards in the Workplace – An Employer’s Guide

Can you imagine a workplace where employees dread coming to work each day, not because of the tasks at hand, but due to the psychological toll their job takes on them?

Unfortunately, this scenario is all too common in today’s fast-paced, high-pressure work environments. Psychosocial hazards, such as excessive workload, lack of support, and workplace bullying, can lead to serious mental health issues like anxiety, depression, and burnout, as well as physical health problems.

As an employer, you have a legal and moral obligation to identify and manage psychosocial risks in your workplace. Under work health and safety (WHS) laws, you must take all reasonably practicable measures to ensure the psychological and physical safety of your workers. Failing to do so can result in costly workers’ compensation claims, reduced productivity, high turnover, and reputational damage.

In this blog post, we’ll explore what psychosocial hazards are, how to identify them in your workplace, and most importantly, what you as an employer can do to assess and control these risks effectively.

What Are Psychosocial Hazards?


Psychosocial hazards are aspects of work that have the potential to cause psychological or physical harm to workers. 

The model WHS Regulations define a psychosocial hazard as: 

“a hazard that may cause psychological harm (whether or not it may also cause physical harm).” 

These hazards can arise from the way work is designed, organised, and managed, the work environment itself, equipment used, or negative workplace interactions and behaviours.

Some common examples of psychosocial hazards include:

  • High job demands and time pressure
  • Low job control and autonomy
  • Poor support from supervisors or colleagues
  • Lack of role clarity or conflicting roles
  • Unfair treatment and lack of procedural justice
  • Violence, aggression, bullying, and harassment
  • Toxic workplace relationships and interactions
  • Mismanaged organisational change

It’s important to recognise that psychosocial hazards often don’t occur in isolation. They can interact and combine to pose even greater risks to worker mental health and well-being. 

For example, a job with relentless time pressure becomes even riskier when the worker has little control over their tasks and lacks adequate support from leaders. As an employer, you need to consider the cumulative impact of hazards, not just each one individually.

Employer Duties Under WHS Laws


As an employer or
person conducting a business or undertaking (PCBU), you have a primary duty under the model WHS laws to ensure the psychological and physical health and safety of your workers, so far as is reasonably practicable. This positive duty extends to eliminating or minimising risks to psychological health arising from psychosocial hazards.

The model WHS Regulations set out specific requirements for PCBUs to manage psychosocial risks. You must:

  • Identify reasonably foreseeable psychosocial hazards
  • Eliminate psychosocial risks if reasonably practicable, or if not reasonably practicable, minimise the risks so far as is reasonably practicable
  • Maintain and review control measures to ensure they remain effective

     

In determining what control measures to implement, you must consider various factors, including:

  • The duration, frequency, and severity of workers’ exposure to psychosocial hazards
  • How different psychosocial hazards may interact or combine to produce new or changed risks
  • The design of work tasks, systems of work, and the work environment
  • Workplace interactions and behaviours
  • The information, training, instruction, and supervision provided to workers

     

Consultation is another key duty for PCBUs in relation to psychosocial hazards. You must consult with workers who are likely to be affected by a WHS matter, such as when identifying hazards and deciding on control measures. It involves sharing relevant information, giving workers a reasonable opportunity to express views, and taking those views into account.

If you share WHS duties with other businesses, you must also consult, cooperate, and coordinate activities with them.

To ensure you and your management team are fully equipped to meet these WHS duties and drive change, our Psychosocial Hazards Training Online offers comprehensive training on all aspects of psychosocial hazard management in the workplace.

The Risk Management Process


To meet your WHS duties as an employer, you should use the risk management process to systematically identify, assess, and control psychosocial hazards:

  1. 1. Identify the hazards
  2. 2. Assess the associated risks
  3. 3. Implement control measures to eliminate or minimise risks
  4. 4. Regularly review the effectiveness of controls
Risk Management Process - Diversity Australia

1. Identifying Psychosocial Hazards


Proactively identifying psychosocial hazards is the first step in managing risks to psychological health. Under WHS laws, you must involve your workers and their representatives in this process. Your workers have intimate knowledge of the hazards they face in their daily work and valuable insights to share. Consultation is not only legally required, but leads to better outcomes.

To identify psychosocial hazards in your workplace, consider:

  • Observing work practices and interactions
  • Analysing HR data for trends in turnover, absenteeism, and complaints
  • Conducting worker surveys and focus groups
  • Examining incident reports and workers’ compensation claims
  • Walking through your workplace and assessing the physical conditions
  • Reviewing job descriptions, policies, procedures, and contracts

Developed by workplace mental health experts, the People at Work online risk assessment tool is a helpful resource you can use to comprehensively identify psychosocial hazards. It’s a validated, evidence-based tool that’s freely available to all Australian businesses.

The 14 most common psychosocial hazards to be on the lookout for include:

HazardDescriptionExamples
1. Job DemandsThe level of mental, emotional, or physical effort required to do a job.

Both high and low demands can be hazardous.
High:
• Intense or sustained concentration
• Excessive workloads

Low:
• Highly repetitive or monotonous tasks
• Too little work to fill the day
2. Low Job ControlLow levels of influence over when, where, and how to do work.• Lack of control over work methods
• Inability to make decisions
• Monitored work with little flexibility
3. Poor SupportPoor practical assistance, feedback, and emotional support received from supervisors and co-workers. • Unsupportive supervisor
• Lack of necessary information
• Social isolation
4. Lack of Role ClarityUncertainty about job responsibilities, expectations, and how one’s work contributes to the organisation. • Unclear job descriptions
• Conflicting expectations from managers
• Uncertainty about performance standards
5. Poor Organisational Change ManagementStress from poorly managed organisational changes affecting job security, workloads, and work relationships.• Lack of worker consultation
• Insufficient communication
• Inadequate support during changes
6. Inadequate Reward and RecognitionInadequate acknowledgement and valuing of a worker’s efforts and contributions.• Lack of positive feedback
• Imbalance between effort and rewards
• Non-recognition of extra effort
7. Poor Organisational JusticeLack of fairness in the workplace in terms of outcomes and decision-making processes. • Biased work allocations
• Unfair disciplinary actions
• Lack of transparency in decisions
8. Traumatic Events or MaterialExposure to distressing events or material that can have a profound psychological impact.• Witnessing severe injury
• Investigating family violence
• Contact with deceased persons
9. Remote or Isolated WorkImpact on mental health from lack of support and increased risks in emergencies.• Working alone
• Work far from population centres
• Poor communications at work sites
10. Poor Physical EnvironmentUnpleasant, uncomfortable, or hazardous conditions in the working environment, which can affect mental health.• Exposure to hazardous conditions
• Lack of privacy
• Poorly designed work areas
11. Violence and AggressionExposure to work-related violence and aggression from co-workers, clients, or the public. • Physical assault
• Aggressive gestures
• Verbal abuse
12. BullyingRepeated, unreasonable behaviour directed at a worker that creates a risk to health and safety. • Offensive language
• Unjustified criticism
• Withholding necessary information
13. HarassmentUnwanted behaviour that offends, humiliates, or intimidates a person, based on characteristics such as age, race, sex, disability, etc.

Sexual harassment is included.
• Insulting jokes about racial groups
• Explicit messages
• Derogatory comments about disability
14. Conflict or Poor Workplace RelationshipsInterpersonal conflict or negative interactions that can be a significant source of stress.• Heated arguments
• Rudeness or uncooperative behaviour
• Constant criticism from managers

2. Assessing the Risks


Once you’ve identified the psychosocial hazards present in your workplace, the next step is to assess the associated risks. Not all hazards pose the same level of risk. You need to understand how severe the consequences could be and how likely it is that a worker could be harmed. This information will help you prioritise your risk control efforts and resources.

To assess each psychosocial risk, consider:

  • How long are workers exposed to the hazard? (duration)
  • How often does the exposure occur? (frequency)
  • How serious are the potential impacts on health? (severity)

For example, a customer service job where difficult interactions are an hourly occurrence poses a higher risk than one where they happen only occasionally. The more severe the potential psychological or physical harm, the more urgent the need for effective risk control measures.

It’s vital to assess the combined effects of different psychosocial hazards, rather than looking at each in isolation. Hazards can interact to amplify the risks in ways that may not be obvious when considering them individually. A highly demanding job may be manageable if a worker has a high degree of autonomy and support. But when low job control and an unsupportive work environment are added to the mix, the risk of harm is significantly increased.

Methods you can use to assess psychosocial risks include:

  • Worker surveys that ask about job demands, control, support, and other factors
  • Interviews and focus groups to gain qualitative insights into work experiences
  • Analysing human resources data to identify high-risk occupations and teams
  • Reviewing incident reports, complaints, and insurance claims for trends
  • Consulting subject matter experts like occupational psychologists

3. Controlling the Risks


The next step is implementing control measures to eliminate the risks if reasonably practicable, or if not, minimise them as much as possible. The model WHS Regulations require you to consider various factors when selecting controls, such as:

  • Work design and systems
  • Work environment and conditions
  • Equipment and structures
  • Workplace interactions
  • Information, training, and supervision

     

Following the hierarchy of controls, the most effective risk control measures are those that design out the hazard or substitute it with a safer alternative. Lower-order controls that rely on human behaviour like training and personal protective equipment are less reliable. 

Some examples of control measures for common psychosocial hazards include:

  • Redesigning jobs to reduce excessive demands
  • Involving workers in decisions about how their work is done
  • Providing training for managers on supportive leadership
  • Ensuring job descriptions clearly outline duties and responsibilities
  • Consulting with workers about proposed changes and seeking their input
  • Ensuring remuneration is fair and market-competitive
  • Implementing fair and transparent policies and procedures
  • Offering employee assistance programs and counselling services
  • Providing regular opportunities for remote workers to connect with colleagues
  • Ensuring incidents are reported, investigated and followed up
  • Implementing policies and procedures to prevent and respond to violence
  • Developing a clear policy stating bullying is not tolerated
  • Training workers on what constitutes harassment and how to report it
  • Providing training on effective communication and conflict resolution

4. Reviewing Control Measures


The final step is to monitor and review your control measures to ensure they remain effective over time. Reviewing controls helps you identify if the controls are working as intended or need to be modified or replaced with a more effective solution.

The model WHS Regulations require you to review control measures whenever:

  • A control is not adequately controlling risks
  • A change occurs that may introduce new or different risks
  • A new hazard or risk is identified
  • Consultation indicates a review is needed
  • A health and safety representative (HSR) requests a review based on the above ground

     

In addition to these mandatory circumstances, it’s good practice to review controls at regularly scheduled intervals, such as during annual planning processes. This proactive approach helps you continuously improve your psychosocial risk management practices.

When undertaking a review, consider questions like:

  • Are the controls being used as intended?
  • Have there been any changes to work that could impact the effectiveness of the controls?
  • Is there an opportunity to implement higher-level controls that were previously ruled out?
  • Have workers reported any concerns about the controls or new psychosocial hazards?
  • Is there objective evidence that psychosocial risks have been reduced, e.g. lower absenteeism?

     

If the review indicates that a control measure is not working as intended, you must revise it. This may involve modifying the existing control or replacing it entirely with a different, more effective solution. Any changes must be made in consultation with workers.

Reviewing control measures is especially important when significant workplace changes occur, such as restructures, new work methods, or changes to job roles. These changes can introduce new psychosocial hazards or impact the effectiveness of existing risk controls. 

By systematically reviewing your control measures, you can ensure your psychosocial risk management approach remains relevant and effective over time.

Cultivate a Thriving Workplace With Diversity, Equity, and Inclusion


Cultivating a workplace culture that values
diversity, equity, and inclusion (DE&I) can play a significant role in mitigating psychosocial hazards. When workers feel respected, supported, and able to bring their whole selves to work, they are less likely to experience stress and psychological harm.

Partnering with trusted DE&I consulting firm Diversity Australia can help you embed inclusive practices throughout your organisation. With over 10 years of experience and a team of highly qualified consultants, we specialise in delivering tailored DE&I strategies, training programs, and consulting services.

Our offerings cover key areas such as:

  • Unconscious bias awareness
  • Inclusive leadership development
  • Psychological safety in teams
  • Respectful workplace behaviours
  • Cultural competency

If you need expert assistance with psychosocial risk management, contact us today. With our deep expertise and commitment to evidence-based practice, we can help you build a mentally healthy, inclusive, and high-performing work culture.

Protect your most valuable asset—your people—and set your organisation up for long-term success. It’s not just the right thing to do, it’s the smart thing to do.


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About The Author

About Diversity Australia: Leading the Way in Diversity, Equity, and Inclusion

WE CHAMPION INCLUSION FOR ALL ORGANISATIONS: Diversity Australia is the leading national and international diversity, equity and inclusion (DE&I) professional services firm.

We specialise in DE&I training and consulting, including unconscious bias, inclusive leadership, psychological safety, respect at work, and cultural awareness and change.

BUILDING HIGH-PERFORMING, INCLUSIVE CULTURES: Our passion lies in developing strategies that promote cultures of inclusion and diversity. We help organisations foster a high-performing, equitable workforce that sets a new global standard for DE&I.

EXPERIENCE & EXPERTISE YOU CAN TRUST:

  • Led by CEO Steven Asnicar, an experienced executive and thought leader in strategic human resources and DE&I;
  • Team of over 10 highly qualified consultants with advanced degrees and extensive industry experience;
  • Alignment with Global ISO Diversity and Inclusion Standards, Australian Inclusive Service Standards (ISS), and ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations for DE&I;
  • Training content researched and created by subject matter experts, benchmarked across our diverse senior team;
  • Positive focus on the ethical and equity-related benefits of an inclusive culture.
About Diversity Australia:

Leading the Way in Diversity, Equity, and Inclusion

WE CHAMPION INCLUSION FOR ALL ORGANISATIONS: Diversity Australia is the leading national and international diversity, equity and inclusion (DE&I) professional services firm.

We specialise in DE&I training and consulting, including unconscious bias, inclusive leadership, psychological safety, respect at work, and cultural awareness and change.

BUILDING HIGH-PERFORMING, INCLUSIVE CULTURES: Our passion lies in developing strategies that promote cultures of inclusion and diversity. We help organisations foster a high-performing, equitable workforce that sets a new global standard for DE&I.

EXPERIENCE & EXPERTISE YOU CAN TRUST:

  • ● Led by CEO Steven Asnicar, an experienced executive and thought leader in strategic human resources and DE&I;
  • ● Team of over 10 highly qualified consultants with advanced degrees and extensive industry experience;
  • ● Alignment with Global ISO Diversity and Inclusion Standards, Australian Inclusive Service Standards (ISS), and ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations for DE&I;
  • ● Training content researched and created by subject matter experts, benchmarked across our diverse senior team;
  • ● Positive focus on the ethical and equity-related benefits of an inclusive culture.
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