Mental health is one of today’s biggest workplace challenges—and your company can either support it or make it worse.
While work can offer connection, purpose and structure, it can also bring stress, bullying or burnout. And when mental health is overlooked, the impacts aren’t just personal. They ripple through your organisation. So, what can you do to keep your workplace happy and healthy? It starts with effectively managing psychosocial hazards.
What are psychosocial hazards?
Psychosocial hazards are factors in the workplace that can affect mental health and wellbeing among your team. They include:
- Stress
- Bullying
- Discrimination
- Excessive workloads
- Poor support or clear communication
- Unhealthy work-life balance
- Job insecurity
- Unclear job roles or expectations
- Lack of recognition or appreciation
- Long or irregular hours
- Psychological harm or physical harm
- Sexual harassment
- Unsafe or unhealthy working conditions
- Toxic workplace culture
- Poor workplace relationships
- Isolation or lack of teamwork
- High-pressure environments
Psychosocial hazards might not be as visible as physical hazards, but their impact can be just as serious. When left unaddressed, they can lead to a range of mental health issues.
The real impact on mental health
The most common mental health issues seen in Aussie workplaces include anxiety, stress, burnout, post-traumatic stress disorder (PTSD) and sleep disorders.
According to a 2024 report by Safe Work Australia, mental health conditions now account for 9% of serious workers’ comp claims—a 36.9% rise since 2017–18.
These claims lead to more time off—over four times longer than physical injuries—and cost more than three times as much. Workers affected are also more likely to face stigma and have a tougher time returning to work.
And the impact doesn’t stop there. Mental health issues can drive up both absenteeism (chronic absence) and presenteeism (loss of productivity at work), affecting overall team wellbeing and productivity.
The Blackdog Institute reports that the most common reasons for work-related mental stress in Australia are work pressure (31%), work-related harassment and/or bullying (27%) and workplace violence (14%).
Psychosocial risks – your legal and ethical obligations
Under Australian work health and safety laws, looking after your team’s mental wellbeing isn’t optional. It’s a legal requirement.
- The Work Health and Safety Act says every employer must provide a safe work environment. That includes managing risks to mental health, like stress, bullying and harassment.
- In 2022, the WHS regulations were updated to make this even clearer. Now, employers are expected to spot psychosocial risks, assess how serious they are, and take steps to manage them—just like you would with physical hazards.
- Ignoring these responsibilities isn’t just risky for your people. It can lead to serious consequences, including fines or legal action, if someone gets hurt, and it could’ve been prevented.
Legal obligations aside, looking after your team’s mental health is simply the right thing to do. People deserve to feel safe, respected and supported at work.
That means:
- Creating a culture where everyone feels included and treated with respect
- Taking mental health concerns seriously when they’re raised
- Offering real support—whether that’s an Employee Assistance Program (EAP), time off or adjusted duties
- Keeping things private and treating people with dignity
Supporting mental wellbeing isn’t just kind. It also helps people stay engaged, loyal and able to do their best work.
How to spot psychosocial hazards (even hidden ones)
While some psychosocial hazards can be obvious, like large workloads and outward signs of stress or anxiety, many can fly under the radar.
While you might not always see them, there are ways to spot the signs through patterns, feedback and observation:
- Look at patterns, not just people – High turnover, increased sick leave or a spike in absenteeism can signal something deeper is going on, such as burnout, stress or dissatisfaction.
- Pay attention to feedback (formal and informal) – Regular check-ins, surveys, and even offhand comments can give you insight. If people mention unclear expectations, feeling overwhelmed or friction in the team, take it seriously.
- Observe behaviour shifts – If someone who’s usually upbeat is suddenly withdrawn. If a reliable team member starts missing deadlines, it could point to a psychosocial issue.
- Watch the workload – Is the team constantly rushing, skipping breaks or emailing late at night? Chronic overwork is a big red flag.
- Monitor workplace culture – Cliques, gossip, passive-aggressive comments or unaddressed conflict? These can be signs of bullying, exclusion or poor communication.
- Look at how change is handled – If changes (like restructures or new systems) are rolled out with poor communication or no support, stress can skyrocket, especially if staff feel blindsided.
Managing psychosocial risks at work
Reducing psychosocial risks in the workplace isn’t just about box ticking. It’s actually about creating a culture where people feel safe, supported and respected.
Here are some tips on how to do it in a practical, people-first way:
- Start with honest conversations – Create space for regular check-ins and team discussions. Ask how people are really going. Not just about deadlines, but workload, stress and support.
- Set clear roles and expectations – Unclear responsibilities can lead to confusion and conflict. Make sure everyone has role clarity and knows what’s expected of them and who to go to for help.
- Keep workloads realistic – Long hours, tight deadlines and never-ending to-do lists can wear people down. Monitor workloads and redistribute tasks when needed.
- Support good managers – Leaders play a big role in workplace mental health. Give them the training and tools to lead with empathy, handle conflict and support wellbeing.
- Call out bullying and harassment – Don’t let toxic behaviour slide. Make sure people know how to report issues and feel confident they’ll be taken seriously.
- Encourage breaks and boundaries – Promote a culture where it’s okay to switch off, whether it’s lunch breaks, mental health days, or logging off on time.
- Offer practical support – Whether it’s EAP access, flexible work options, or mental health training, small supports can make a big difference.
Supporting mental health = good for people and business
Don’t let mental health challenges drag down your team, culture or bottom line. By spotting psychosocial hazards early and tackling them proactively, you can build a healthier, happier workplace where people—and performance—can thrive.
Get in touch with our friendly team today to learn how we can help you effectively assess and reduce psychosocial risks in your workplace.
