Control Psychosocial Risks Before They Harm: A Practical Guide for Every Workplace

Lego worker figures from different industries led by a Lego businessman holding a briefcase, symbolising diverse organisational roles managing psychosocial risks.

Get Control Measure Ready

In the ever-evolving landscape of workplace safety, it’s no longer enough to simply address physical hazards. Controlling psychosocial risks – those factors that affect employees’ mental health, wellbeing, and performance – has become a critical priority for any organisation that values its people and long-term success.

Worryingly, psychological injuries are among the fastest-growing categories of workplace injury. They’re also some of the costliest – impacting businesses through lost productivity, increased absenteeism, higher compensation claims, and greater staff turnover.

In fact, Safe Work Australia reports that psychological injuries typically result in more time off work and higher compensation pay-outs compared to physical injuries. With these mounting costs, it pays – literally – for executives, HR professionals, and WHS leaders to put appropriate psychosocial control measures in place. 

The good news? Organisations that take this seriously often see improved productivity, higher employee satisfaction, reduced turnover, and a stronger employer brand.

Why Psychosocial Risk Management Matters

This article builds on our earlier pieces relating to, Identifying Psychosocial Hazards and Assessing the Risks, where we covered what these risks look like and how to evaluate their impact. Now, we shift into action – outlining practical steps to control those risks and create a safer, more supportive workplace environment.

Let’s Recap: Psychosocial Hazards in the Workplace

To effectively protect your employees’ mental health and meet your organisation’s WHS obligations, it’s important to understand what psychosocial hazards are and how they may arise at work. According to SafeWork Australia, psychosocial hazards are aspects of work and situations that may cause a stress response which, if prolonged or severe, can lead to psychological or physical harm.

Here are the key psychosocial hazards identified by SafeWork Australia:

Psychosocial Hazards:

  • Job demands (e.g. excessive workload, time pressure)

  • Low job control (limited say in how or when work is done)

  • Poor support (from supervisors, managers, or colleagues)

  • Lack of role clarity (unclear expectations or responsibilities)

  • Poor organisational change management (e.g. lack of consultation or communication)

  • Inadequate reward and recognition

  • Poor organisational justice (perceived unfairness in decision-making)

  • Traumatic events or material (e.g. exposure to distressing content or incidents)

  • Remote or isolated work

  • Poor physical working environment (e.g. noise, lighting, temperature)

  • Violence and aggression

  • Bullying

  • Harassment, including sexual and gender-based harassment

  • Conflict or poor workplace relationships and interactions

Recognising these hazards is the first step toward creating a psychologically healthy and safe workplace.

The Benefits of Controlling Psychosocial Risks Effectively

Organisations are legally required to control psychosocial risks, but the benefits go beyond compliance. When done well, it leads to improved employee wellbeing, higher engagement and productivity, reduced absenteeism and turnover, and a stronger employer brand – making the workplace safer, more supportive, and ultimately more successful.

Regardless of your organisation’s size or structure, a strategic, data-informed approach will help you implement the most effective and cost-efficient control measures. Here’s how:

1. Start with Identification and Risk Assessment

Before you jump into solutions, make sure you’ve accurately identified your workplace’s psychosocial hazards and assessed the severity and likelihood of each. This ensures you’re not wasting resources on ineffective or misaligned interventions.

2. Tailor Control Measures to Your People

Next, research hazard-specific control measures, talk to other professionals about what works for them, and – most importantly – consider your own workforce’s needs. No one-size-fits-all solution exists when it comes to psychological safety.

3. Implement Practical, Evidence-Based Controls

Here are just a few examples of proven strategies:

  • Promote psychological safety by encouraging respectful communication and open feedback

  • Offer mental health resources, including access to an Employee Assistance Program (EAP)

  • Design flexible roles that offer control over workloads and support work-life balance

  • Train managers and staff in how to identify and address psychosocial hazards

  • Foster a supportive culture where employees feel valued, recognised, and included

These measures help not only to meet WHS compliance requirements, but also to build a more resilient and engaged workforce.

The Business Case for Psychosocial Risk Management

Investing in psychosocial safety isn’t just good for employees—it delivers measurable returns for the business.

💡 Backed by Research:

  • Deloitte reports ROI ranging from 1.5:1 to 11:1 for effective mental health programs.

  • Gallup found that highly engaged workplaces are 21% more profitable.

  • World Health Organisation (WHO) estimates that every $1 invested in mental health yields $4 in return.

  • Harvard Business Review highlights an average ROI of $3 to $6 for wellbeing investments.

📈 Key Benefits for Organisations:

  • 12% increase in productivity through strong wellbeing initiatives (APA)

  • 35% reduction in absenteeism and presenteeism

  • 22.5% improvement in retention when employees feel supported

  • 50% fewer compensation claims in organisations with strong psychosocial safety measures

These figures show that doing the right thing for your people is also a smart move for your bottom line.

Ready to Take a Strategic Approach?

Creating a psychologically safe and mentally healthy workplace is no longer optional – it’s a competitive advantage.

Wherever you are on your psychosocial safety journey, we’re here to help. Our expert team can guide you in identifying, assessing, and controlling psychosocial risks with tailored strategies that suit your culture and goals.

Book your FREE 30-minute strategy call today

Let’s have a constructive conversation about how you can better protect your people and business – so everyone can thrive.

👉 Get in Touch with us to get started, or check out our Related Training Options.

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