Understanding Psychosocial Risk in the Workplace

With the imminent introduction of new psychological health regulations, what does this mean for employers? 

Workplace bullying can occur in a wide variety of different ways. It can cause psychological and physical harm, as well as being a risk to health and safety. But what about psychosocial risk - the psychological and social conditions of the workplace? 

 

Psychosocial risks include stress, fatigue, bullying, violence, aggression, harassment, and burnout, which can be harmful to the health of workers and compromise their wellbeing. There are also risk factors (e.g. misuse of alcohol or other drugs, poor change management) that increase the risk or potential for harm to health from exposure to a psychosocial hazard. 


According to a 2021 report published by Safe Work Australia, 9% of all serious workers’ compensation claims are for work related mental health conditions.  

 

On average, 7984 Australians are compensated for work related mental health conditions each year. These psychological injuries tend to require longer recover times and higher costs, which more time away from work than physical injuries. 

 

Like bullying and in fact any other workplace hazard, employers must eliminate psychosocial hazards and manage risks to health and safety arising from work so far as is reasonably practicable. 

 

There are a number of key factors that organisations need to assess as part of their risk management process, these include:  

  

  • Work demands  
  • Low levels of control  
  • Inadequate support from supervisors and/or co-workers  
  • Tasks or jobs where workers have insufficient or inappropriate support from supervisor or co-workers  
  • Lack of role clarity  
  • Incompatible expectations or demands placed on workers by different workplace stakeholders  
  • Poor organisational change management  
  • Unstructured approach to change  
  • Low recognition and reward  

 

It is vital that employers have a clear understanding of their business’ obligations, the right tools to assist their workforce and procedures in place to manage the risk of psychosocial hazards in the workplace. 

 

WorkPro is here to help! You can view our ‘Psychosocial Risk’ webinar here and you can activate a free trial of WorkPro’s eLearning modules ‘Mental Health in the Workplace’, ‘Bullying, Discrimination and Harassment’ and 'Safety, Discrimination, Harassment and Bullying in on-hire work' right here! 


By Tania Romano July 7, 2025
Explore the hiring barriers that disadvantage skilled candidates in Australia and how WorkPro can help remove the noise from recruitment.
A green square featuring white text that reads 'EOFY 2025: Fair Work Act Compliance Essentials'
By Tania Romano June 30, 2025
Ensure your business meets EOFY 2025 obligations under the Fair Work Act. Stay compliant with key updates and avoid penalties.
Navy blue box with white text that reads 'EOFY 2025: WHS Self-Audit Checklist for Compliance'
By Tania Romano June 30, 2025
Conduct a WHS self-audit before EOFY 2025 to identify safety gaps and ensure compliance with Australian regulations.
Blue square with white text that reads: Stay Up to Date with New Legislation: Smart Solutions for HR
By Tania Romano June 30, 2025
Discover essential tools for HR and compliance teams to remain in step with Australian legislation in 2025. Ensure compliance and streamline processes.
Yellow square with navy writing that reads 'EOFY 2025: State-by-State Compliance Checklist'
By Tania Romano June 30, 2025
Navigate Australia's employment laws with our EOFY 2025 HR compliance checklist, tailored for each state and territory.
Green square with white text that reads 'EOFY 2025: Key Updates in Australian Employment Law'
By Yi-Chen Lee June 27, 2025
Stay informed on the latest changes in Australian employment law for FY25. Ensure compliance and protect your workforce effectively.
Show More