Workplace Psychosocial Wellbeing

Managing psychosocial hazards and building a mentally healthy workplace

Managing psychosocial hazards in the workplace and enhancing employee wellbeing is critical to meeting your legislative obligations as an employer and to enhancing organisational performance.

Proactive and effective action in these areas will help foster a healthy workplace and reduce negative consequences for you, your organisation and your employees.

Enhance
Reduce
  • Employee engagement
  • Productivity
  • Innovation
  • Reputation
  • Staff retention.
  • Financial penalties
  • Legal consequences
  • Employee claims
  • Damage to reputation.

What are psychosocial hazards?

According to Safe Work Australia, a psychosocial hazard is an element in the workplace, or a specific work situation, that has the potential to cause serious psychological or physical harm.

Common psychosocial hazards at work include:

  • Job demands
  • Poor physical environment
  • Traumatic events or material
  • Lack of role clarity

  • Poor change management

  • Remote or isolated work
  • Conflict and poor workplace relationships
  • Low job control
  • Inadequate reward and recognition
  • Poor organisation justice and support
  • Violence, bullying and harassment.


What are the impacts of psychosocial hazards on workplaces?

$10.9 billion per year

The total cost to Australian employers of untreated mental health conditions.

36.9% increase 

In serious workers’ compensation claims due to mental health conditions from 2017 to 2022.

$1.50 to $4.00 per dollar spent

The return on investment from psychosocial wellbeing interventions.

Unsure how to manage psychosocial risk or create a mentally healthy workplace?

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The key elements of a mentally healthy workplace

The elements of a healthy workplace

Click to open full size

Inclusion

Fosters equal opportunities, tailored resources and healthy relationships.

Positive workplace culture

Enhances team wellbeing and psychological safety.

Aligned operating model

Prioritises employee wellbeing in policies, processes, and systems.

Education and capability

Builds a safe work environment to foster employee well-being and success.

Strategy, risk management and continuous monitoring

Protects employees and enables proactive responses.

Leadership

Shapes the way mental health is valued, perceived and prioritised.

How BDO can help

Our multidisciplinary team includes psychiatrists, psychologists, people and culture specialists, workplace safety experts, and seasoned business consultants. Together, we bring a well-rounded perspective and specialised knowledge to support and enhance psychosocial wellbeing within your organisation.

A comprehensive analysis of your existing psychosocial hazards and overall employee wellbeing provides the basis for a roadmap to address these hazards and foster a mentally healthy workplace, tailored to your organisation’s unique environment and objectives. Your organisation’s leadership team will be empowered to proactively manage risks and cultivate a culture of wellbeing that promotes sustained performance and resilience.

The wheel below illustrates the elements of a comprehensive approach to managing psychosocial hazards and employee wellbeing, from assessment to design and implementation.

The BDO Psychosocial Wellbeing Wheel

The BDO Psychosocial Wellbeing Wheel - click to open full size.

FAQs

Who is affected by the model Work Health and Safety (WHS) regulations, and what is their role?

Under the WHS Act, a person conducting a business or undertaking (PCBU) has the primary duty of care to ensure the health and safety of the workplace.

According to the model WHS regulations, a PCBU must eliminate workplace psychosocial risks or minimise them so far as is reasonably practicable. They must also maintain, review and - if necessary - revise implemented control measures to maintain a work environment without risks to health and safety.

Comcare defines PCBU as a term that relates to an organisation or person who is more commonly known as ‘the employer’. For example, a PCBU may be a company, an association, a sole trader or a self-employed person.

How do I best manage psychosocial risks in the workplace?

There is no one size fits all solution when it comes to managing psychosocial risks in the workplace. Industry, culture, job design, and a variety of other factors that vary from workplace to workplace may lead to psychosocial hazards that require unique and tailored interventions. What works for one business, may not necessarily work for another.

Being familiar with the relevant legislation and your obligations as an employer or PCBU is essential and Safe Work Australia has a number of useful resources on managing psychosocial risks at work.

A specialised provider of psychosocial wellbeing services will work with you to understand the unique challenges of your workplace and build a tailored approach to managing and – wherever possible – eliminating psychosocial risks. Contact our team to find out how we can help.

What legislation covers psychosocial hazards?

Safe Work Australia has developed, and is responsible for maintaining, the national model WHS laws. These include the model WHS Act, model WHS regulations and model Codes of Practice. However, the Commonwealth, states and territories are separately responsible for implementation and enforcement.

As such, the legislation pertaining to psychosocial hazards varies on a state-by-state basis:

  • NSW: Work Health and Safety Regulation 2017
  • VIC: Occupational Health and Safety Act 2004
  • QLD: Work health and Safety (Psychosocial Risks) Amendment Regulation 2022
  • WA: Work Health and Safety Act 2020
  • SA: Work Health and Safety (Psychosocial Risks) Amendment Regulations 2023 under Work Health and Safety Act 2012
  • TAS: The Work Health and Safety Regulations 2022
  • ACT: Work health and Safety Act 2011
  • NT: Work Health and Safety Regulations 2011.

Contact us

Contact our team to discuss your needs using the request for service form.
Alternatively, call 1300 138 991 to speak with an adviser in your nearest BDO office.

Meet our team

Scott Way

Scott Way

Director, Industrial & Organisational Psychology
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