In Short
- Adjust workloads and processes to prevent burnout and reduce errors.
- Use buddy systems and frequent communication to support remote workers.
- Implement clear policies to set behaviour standards and outline consequences.
Tips for Businesses
Regularly assess and manage psychosocial risks by engaging employees in open discussions, implementing training and providing mental health support. This proactive approach improves employee well-being and reduces legal risks for your business.
In the new era of working from home, the focus is more commonly on managing psychosocial hazards. Your workplace may be exposed to a variety of psychosocial hazards, leading to psychological harm such as anxiety, depression and sleep disorders. This article considers a few hazards your business may encounter and how to identify them effectively.
High Job Demands
Occasionally, your workers may be experiencing higher workloads due to certain projects or a reduction in staff. As an employer, you should consider what adjustments can be made to facilitate a sustainable and safe work environment if your workers are constantly under strain because of high work demands. Implementing systems that reduce human error, such as templates or IT systems that help generate reminders, might be a good idea.
Additionally, you may consider providing quiet spaces so that your workers can concentrate on mentally demanding tasks. In order to avoid double handling and unnecessary workload, demanding tasks such as lifting and moving must be designed in a manner that is as seamless as possible. For example, you could implement procedures for the use of machinery and ask multiple people to handle goods at the same time.

As a business, you are legally obligated to provide a safe workplace, regardless of where your employees work—from the office, home, or on the road. This factsheet outlines common health and safety risks and provides a risk mitigation checklist.
Inadequate Recognition and Reward
The average full-time employee works 38 hours a week. It is crucial that you acknowledge your employees’ hard work and effort over the course of many weeks and months. If you are not supportive of your employees’ work for your business, they may begin to experience excessive stress, depression and burnout. An organisation’s culture cannot be shaped without adequate recognition, as well as providing people with a safe place to be seen, heard, and valued.
You should avoid:
- providing unfair negative feedback to new employees who have yet to receive adequate training;
- unfairly rewarding employees for others’ efforts; and
- not acknowledging employees who support colleagues.
Traumatic Events
Some certain industries and jobs are frequently exposed to traumatic events. Traumatic exposure can include:
- workplace death;
- exposure to traumatic material; or
- vicarious exposure through patients, rude customers, or clients.
This can be quite a challenging situation to manage as each person is different when exposed to traumatic events. To assist these employees with their jobs and ensure that they feel supported, you should implement actions that are reasonably possible in the circumstances. For example, you may:
- limit the amount of material an employee is exposed to, such as by reducing the number of patients or cases;
- increase break times to assist a worker with transitioning back into a full workload; and
- provide extra support and assistance through appointments with a psychologist or counsellor.
Isolated Work
In the aftermath of COVID-19, employees often work at home for days, weeks, or even months at a time. As a result, they may work alone for extended periods of time, especially if they live alone. It is important to think about whether isolated work may affect your employees. Buddy systems, frequent communication in the workplace, and an open office plan that encourages socialising can help you combat this.
Bullying and Harassment
There are many forms of bullying, including:
- verbal;
- social; and
- physical.
It is common practice in the workplace to have policies to prevent bullying and harassment. These workplace policies help set the standard for appropriate behaviour that is expected in the workplace. In these policies, you should outline what:
- employees should do if they are being bullied;
- steps you will take to resolve any issues; and
- consequences an offending employee may face, including termination.
Identifying Psychosocial Hazards in the Workplace
Psychosocial hazards can arise from a variety of behaviours. It is not always easy to identify them, and sometimes they can be quite subtle in nature.
It is possible for subtle behaviours to take the form of passive hazards, such as crude language or sexist remarks. This can negatively affect the overall working environment and adversely impact a person over the long term.
In addition to internal employees, external clients and customers may also exhibit these behaviours.
Behaviours, cultures and environments that may increase the likelihood of psychosocial hazards include:
- workplaces with less diversity, such as those dominated by a single gender, ethnicity, or age group;
- discord in the workplace due to overly competitive workplace cultures;
- high-pressure work environments;
- an inexperienced or ineffective management team;
- lack of knowledge sharing, leading to absenteeism, high turnover and anxiety;
- workplace cultures that isolate new employees and lead to low morale; and
- processes that are tedious and lengthy, causing unnecessary stress and delays in the workflow.
A workplace culture that tolerates or ignores harmful workplace behaviours is more likely to develop one or more of the above cultures, which can have a negative impact on both employee retention and psychological well-being.
Your workplace may be susceptible to psychosocial stressors, so it is essential that you develop a plan to address these issues and to ensure that your workplace is a safe one.
Case Study
Jim is a recent hire at a bank, where his role requires him to liaise with stakeholders across Australia. However, Jim soon realises he has no key manager to report to. Each person he reaches out to believes that he is supposed to report to someone else or is being trained by someone else. To make matters worse, Jim works from home and feels isolated as the workplace does not have an office base.
Feeling helpless, Jim asks for assistance, but instead, he is redirected to read all of the company’s workplace manuals. He is not given practical training and is constantly criticised for making mistakes. Jim is eager to do a great job, but he spends extra hours learning the job due to inadequate training. When he seeks help, he is often met with unavailability as some of his colleagues think that he should be competent enough six weeks after joining the company.
As a result, Jim’s inbox begins to overflow with work as he struggles to complete tasks. He is constantly followed up by various staff members who are extremely frustrated that Jim cannot deliver requests on time. Jim’s inability to do his job impacts the profitability of the company and decreases the productivity of other employees as he is a key piece of the process. After 13 months of working long hours and trying his best, Jim resigns.
Key Takeaways
When managing the risks of psychosocial hazards in your workplace, it is essential to address factors such as high job demands, inadequate recognition, traumatic events, isolation and bullying. Effective measures include:
- clear communication;
- employee support systems;
- practical training; and
- fostering a positive culture.
Overall, unaddressed hazards can lead to poor performance, low morale and, ultimately, resignation. Prioritising employee well-being and proactively addressing psychosocial hazards can lead to healthier employees and a safer workplace.
If you need assistance identifying psychosocial hazards in the workplace, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
As an employer, you are legally required to ensure your workers’ health and safety, including managing psychosocial hazards such as stress, bullying and harassment. Under the Work Health and Safety (WHS) laws, you must identify, assess and control these risks to provide a safe working environment.
Failure to manage psychosocial hazards can result in significant legal consequences, including penalties, fines and reputational damage. Non-compliance with WHS regulations may lead to prosecutions and substantial financial liabilities.
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