Beyond the Basics: Demystifying Common Psychosocial Safety Terms

Starting your journey into psychosocial safety can feel like learning a new language. You hear terms like ‘psychosocial risk’, ‘primary prevention’, and ‘PCBU’, and it's easy to get lost in the jargon. To confidently navigate your responsibilities and build an effective strategy, it's essential to understand what these key concepts mean in a practical, Australian context.

Here's a breakdown of the most common terms you'll encounter, explained in plain English.

Psychosocial Risk This is the central concept. A psychosocial risk is the potential for a psychosocial hazard to cause harm. For example, a high-demand workload (the hazard) creates the psychosocial risk of a worker developing burnout or stress-related illness (the harm). Australian WHS laws require businesses to manage these risks just as they would any physical risk. It's about looking at the entire system of work—how tasks are designed, how managers lead, and how teams interact—and identifying what could potentially cause psychological harm.

Psychosocial Hazard As we've explored, a psychosocial hazard is any aspect of work design or management that can cause psychological harm. Common examples include:

• High workload: Being consistently given more tasks than can be completed in a reasonable timeframe.

• Low control: A lack of autonomy over how, when, or where a task is done.

• Poor support: Feeling unsupported by management or colleagues.

• Bullying and harassment: Unacceptable behaviour that a reasonable person would see as offensive, intimidating, or humiliating.

• Poor organisational change management: Changes that are poorly communicated, leading to uncertainty and anxiety.

• Poor reward and recognition: Feeling undervalued or that rewards are unfairly distributed.

PCBU (Person Conducting a Business or Undertaking) This is a legal term under Australia's WHS laws. It refers to the individual or organisation that has the primary responsibility for ensuring the health and safety of workers and others in the workplace. The term is broad and applies to employers, self-employed persons, and many other entities. The legal duty of a PCBU is to eliminate or, if that's not possible, minimise psychosocial risks as far as is reasonably practicable. This duty is not just about what is easy or cheap, but what is practical and achievable given the resources and knowledge available.

Hierarchy of Controls This is a fundamental principle of WHS in Australia, and it applies to psychosocial risks too. It's a ranking of control measures from most effective to least effective.

• Elimination: The most effective control. Can you eliminate the hazard entirely? For example, by redesigning a role to remove the source of a chronic, unmanageable workload.

• Substitution/Engineering Controls: Can you substitute the hazard with a safer alternative or make physical changes to the work environment? This is less common for psychosocial risks, but an example could be implementing software that automates a monotonous, high-stress task.

• Administrative Controls: This involves changing work processes or procedures. This is where most psychosocial controls sit. Examples include creating a clear policy on acceptable behaviour, providing training for managers on supportive leadership, or setting up a peer support system.

• Personal Protective Equipment (PPE): This is the least effective control and is not typically used for psychosocial risks.

Primary, Secondary, and Tertiary Prevention These terms refer to the timing and purpose of your interventions.

• Primary Prevention: The best approach. It's about preventing harm from happening in the first place by managing the hazards at the source. This is what you do when you redesign a role to reduce excessive demands.

• Secondary Prevention: This is about early intervention. It's for when a risk hasn't been completely prevented but you can catch it before it causes significant harm. Examples include providing resilience training or an Employee Assistance Program (EAP) to support workers who are showing signs of stress.

• Tertiary Prevention: This is about managing the consequences after a psychological injury has occurred. It's about rehabilitation and supporting a worker's return to work.

By demystifying these terms, you empower your organisation to move past the initial confusion and build a confident, effective, and legally compliant approach to psychosocial safety. It's the first step to creating a workplace that is truly safe for all.

From Compliance to Culture: Making the Business Case for Psychosocial Safety

For any business leader, the phrase "workplace health and safety" often triggers thoughts of compliance—a set of rules and regulations you must follow to avoid fines or legal action. While this is certainly a part of the picture, taking a proactive approach to psychosocial safety offers a far greater reward than simply ticking a box. Moving from a mindset of mere compliance to embedding psychosocial safety in your culture is one of the smartest investments an Australian business can make. It’s a business case built not on fear, but on a clear path to growth, resilience, and a competitive advantage.

Here's why a focus on psychosocial safety is not just good policy, but good business.

1. Increased Productivity and Innovation A psychologically safe workplace is a more productive workplace. When employees feel supported and their mental health is a priority, they are less distracted by stress and more engaged in their work. This leads to higher concentration, better problem-solving, and a greater commitment to organisational goals. Furthermore, when workers feel safe to speak up, share ideas, and even make mistakes without fear of blame, they are more likely to innovate. This is the bedrock of continuous improvement and staying ahead of the competition.

2. Enhanced Employee Engagement and Retention In today’s tight labour market, attracting and retaining top talent is a constant challenge. Employees are looking for more than just a good salary; they are seeking a supportive and caring work environment. An organisation with a strong culture of psychosocial safety becomes an employer of choice. By actively demonstrating that you value your team’s mental wellbeing, you build trust and loyalty. This dramatically reduces costly staff turnover and the associated expenses of recruitment and training, allowing you to retain valuable skills and institutional knowledge.

3. Reduced Costs Associated with Absenteeism and Presenteeism Work-related stress and burnout are significant drivers of absenteeism. By addressing the root causes of these issues, you can create a healthier workforce, leading to a noticeable drop in sick days. Equally important is tackling presenteeism—where employees are physically at work but mentally checked out due to stress or other psychological issues. This can be a hidden drain on productivity and is often a precursor to more serious mental health problems. Investing in psychosocial safety is a direct way to reduce these financial and human costs.

4. A Stronger Employer Brand and Reputation In an age of social media and online reviews, an organisation's reputation is built as much on its treatment of staff as it is on its products or services. A strong, positive culture of psychosocial safety can significantly enhance your employer brand. It signals to customers, partners, and the wider community that you are an ethical and responsible business. This can lead to increased customer loyalty and a better reputation in the marketplace.

5. Building Organisational Resilience Organisations that prioritise psychosocial safety are better equipped to navigate challenges and change. When employees feel supported and connected, they form a resilient team that can weather economic downturns, organisational restructuring, or other external pressures. A strong sense of trust and community acts as a buffer against uncertainty, ensuring the business remains stable and adaptable.

Moving beyond a tick-box approach to psychosocial safety is about recognising that your people are your greatest asset. It's an investment that pays dividends not just in compliance and risk mitigation, but in the long-term health, performance, and sustainability of your entire business. For Australian organisations, the choice is clear: a proactive, cultural approach to psychosocial safety is the key to thriving, not just surviving, in the modern economy.

The secret to high-performing teams

Did you know that Google's Project Aristotle discovered the most important factor in determining team success isn't skill, diversity, or even experience?

It's psychological safety.

When team members feel safe to be themselves, share ideas, and take risks, teams become more innovative, productive, and resilient.

Want to foster psychological safety in your team? Here are a few tips:

Lead by example: Be vulnerable and share your own mistakes.

Encourage open communication: Create a space where everyone feels heard and valued.

Celebrate diversity: Embrace different perspectives and experiences.

Provide constructive feedback: Focus on the behaviour, not the person.

Recognise and reward contributions: Show appreciation for everyone's efforts.

Let's build teams where everyone can thrive!

5 Steps to start your Psychosocial Safety journey in Australia

The landscape of workplace health and safety in Australia has evolved, driven by a legislative framework that has placed psychosocial safety at the top of the organisational agenda across sectors. Organisations embarking on this journey, as well as those well down the road, are meeting some daunting challenges. However, the good news is the gains achieved by increasing psychosocial and psychological safety are real and tangible-raising performance, productivity, workforce engagement and wellbeing.

Starting the process of identifying psychosocial hazards and assessing the risks relevant to your workplace doesn't have to be complicated. By taking a structured, step-by-step approach, you can build a strong foundation for managing psychosocial risks and creating a truly healthy and safe workplace.

Here are five essential steps to begin your psychosocial safety journey, keeping Australia's updated WHS laws in mind.

Step 1: Understand Your Legal Obligations

Before you can act, you need to understand the 'why'. In Australia, the WHS Act and its various state-based iterations now explicitly include psychosocial hazards as part of an employer's duty of care. This isn't just about ticking a box; it's a legal requirement. Familiarise yourself with the model WHS laws and your specific state's legislation, as there can be slight variations. Key concepts to grasp are your responsibility as a Person Conducting a Business or Undertaking (PCBU) to manage all risks to health and safety, and the importance of a proactive approach to psychosocial hazards. This includes risks related to work design, bullying, aggression, and fatigue, among others. The Mentally Healthy Workplace Gude provided by WorkSafe Queensland is one good reference to help frame requirements and actions.

Step 2: Identify and Assess Psychosocial Hazards

You can’t manage what you can't see. The next step is to identify the hazards present in your specific workplace. Psychosocial hazards are aspects of work that can cause psychological harm. They are often less obvious than physical hazards. Look for factors such as high job demands, low control, lack of support, poor relationships, and organisational change.

Start by reviewing existing data. This might include incident reports, staff turnover rates, and absenteeism figures. The most effective way to gain a true picture, however, is to engage with your team. Conduct surveys, focus groups, or one-on-one conversations to understand their experiences and perceptions. This is a crucial step for gaining buy-in and making sure your strategy is built on real-world data from your own organisation.

Step 3: Implement Control Measures

Once you have a clear picture of the risks, it's time to put controls in place. The best way to approach this is by using the hierarchy of controls. While a physical control like a guard on a machine is straightforward, psychosocial controls are about changing how work is done. Your primary goal is to eliminate or minimise the risks.

Examples of control measures could include:

• Modifying work design to increase autonomy and reduce unreasonable deadlines.

• Providing training for managers and staff on how to have effective conversations, build respectful relationships, manage conflict, and support their teams.

• Developing clear policies on bullying, harassment and workplace behaviour, and ensuring they are regularly communicated and enforced.

• Fostering a culture of psychological safety, where employees feel safe to speak up, ask questions, interact in the workplace and make mistakes without fear of retribution, ridicule or rejection.

Step 4: Consult with Your Workers

This step is so important it's a legal requirement in Australia, and the fundamental foundation of psychosocial risk management. Consultation with your workers, and any Health and Safety Representatives (HSRs), is essential at every stage of the process—from identifying hazards to implementing control measures. Your team often has the best insights into the practicalities of their work and the challenges they face. Involving them ensures that the solutions you develop are practical, effective, and well-received. Consultation isn't a one-off event; it should be an ongoing process, helping you to continuously improve your approach to psychosocial safety.

At the NPSN we recommend your approach integrates psychosocial and psychological safety by establishing a safe communication culture that ensures respectful and productive discussion on areas of psychosocial risk. You can do this by co-creating and agreeing with workers clear principles for safe, constructive communication and considerate behaviour. In this way, matters can be proposed and discussed respectfully--ensuring than important risk areas are addressed rather than avoided

Step 5: Review and Refine Your Approach

Psychosocial safety isn't a set-and-forget task. Your workplace is a dynamic environment, and risks can change over time. Regularly review the effectiveness of your control measures. Are they working as intended? Have new hazards emerged? Use your consultation channels, survey data, and performance metrics to evaluate your progress.

For instance, after implementing new manager training, you might check if incident reports of bullying have decreased or if employee satisfaction scores related to manager support have improved. This continuous cycle of review and refinement ensures your organisation remains compliant with legislation and, more importantly, provides a genuinely healthy and safe workplace for everyone.

By following these five steps, you can begin your organisation's psychosocial safety journey on a solid footing, moving from a reactive mindset to a proactive, preventative one. This not only meets your legal obligations but also contributes to a more engaged, productive, and resilient workforce.

What is Psychosocial Safety, and Why Does it Matter for Your Business?

Simply put, it’s protecting the psychological health of your workers. It's the proactive management of workplace factors that could cause psychological harm such as stress, anxiety or depression. This is different from "psychological safety," which is about creating an environment where people feel safe to speak up without fear of being shamed or punished. Psychosocial safety is the broader, legally recognised term that encompasses the entire system of work and its potential impact on mental health.

Approximately two-thirds of workers around the world report experiencing daily negative emotions at work (Gallup, 2024).

When the human brain experiences frequent negative emotions, its health, function and performance is dramatically impeded. This profoundly impacts both the Individual and the Organisation.

In Australia we have seen a:

•       46% increase in Mental Health Claims (2019-2023)

•       39% increase in average days taken off work due to mental health hazards. (Allianz, 2024).

Nationally, the legislative framework is clear. Updated Work Health and Safety (WHS) laws across the country now explicitly require Persons Conducting a Business or Undertaking (PCBUs) to manage psychosocial risks just as they would physical risks. This means that factors like high job demands, poor support, bullying, and lack of control are all now considered hazards that must be identified, assessed, and controlled.

So, beyond the legal requirements, why does this matter for your business? The benefits extend far beyond mere compliance.

1. Improved Productivity and Reduced Absenteeism 

Work-related stress, burnout, and other psychological injuries are a leading cause of absenteeism in Australia. The average psychosocial injury claimant is off work 4 times the length of a physical injury claimant. That’s 175 days compared with 44 days--and a huge impact on worker productivity.

The average absence days lost per employee pa increased by 2.6 days since 2019.  That’s a significant loss of work given 58% of businesses surveyed say their absenteeism has increased (Direct Health Solutions 2023 Absence Management and Wellbeing Report).

A workplace with high psychosocial safety is a more productive workplace. When employees feel supported and safe, they are more engaged and motivated. They can focus on their work, rather than on navigating a toxic environment or managing overwhelming stress. This leads to better quality work, a stronger collective commitment to achieving business goals, and reduced need to escape and avoid work stressors. Conversely, a workplace with unresolved psychosocial hazards can lead to presenteeism—where employees are at work but not fully productive due to poor mental health—which is a hidden but significant cost to businesses.

2. Enhanced Corporate Social Responsibility and Employee Retention and Attraction 

Only 43% of workers reported they were "Living Well, Despite Struggle.” These statistics worsen amongst more socially marginalised workers. Only 23% of lower-income employees and 45% of higher-income employees feel their workplace is psychologically safe (AHRI Workplace Report, 2019-2022).

In today’s competitive job market, an organisation’s culture and its commitment to employee wellbeing are major drawcards. Businesses that are proactive about psychosocial safety demonstrate that they genuinely care for their people. This makes them more attractive to top talent and, critically, helps them retain their best employees. When staff feel valued and their mental health is a priority, they are far more likely to stay, reducing costly staff turnover and the loss of institutional knowledge.

Professor Ian Shochet, one of Australia’s leading mental health researchers, reports his overwhelming finding that the strongest predictor of mental health and wellbeing is connectedness and belonging (Shochet, 2016). Organisations that invest in their workplace’s psychological and psychosocial safety will reap returns in employee attraction, retention and commitment--and social responsibility brand reputation. These are tangible levers for corporate performance and growth.

3. Reduced Workers' Compensation Claims 

Across Australia, workplace relations case volume and intervention costs are increasing. Safe Work New South Wales identified a 53% increase in workplace psychological injury in 2024.  Physical injury claims were up 3.5% over the same period (Safe Work NSW, 2024).

The average claim cost ($85,000) to organisation is four times that of a physical injury claim ($21,000) (Safe Work Australia, 2024).

A proactive approach to managing psychosocial risks can substantially decrease the likelihood of workers' compensation claims for psychological injuries, which can be complex, costly and damaging to your business. Indeed, 59% of Australian organisations rank psychosocial safety risks as amongst their top 10 risks ( APS Future of Work, 2023).

Safe Work Australia authorities have made it clear they will increase workplace psychosocial safety investigations in the coming years. However,  29% of organisations do not report to their board on these risks. These risks are as high as 60% in social services.  To avoid the legal risks that can be associated with workplace health and safety claims, organisations need to demonstrate that they have been working actively across the organisation to prevent and reduce psychosocial risks (Ashurst Global survey, 2023).

4. Stronger Workforce Performance and Resilience 

Around 80% of staff say feeling psychologically safe at work is key to their performance (APS Future of Work, 2023; Ashurst Global survey, 2023). A psychologically safe workplace is better equipped to handle change and adversity, and foster innovation, problem-solving and growth outcomes.

This is particularly important in an era of rapid technological change, economic shifts, and a growing global demand on health and social services. Indeed, numerous health researchers have found that even mild patterns of unsafe workplace behaviour dramatically shrink cognitive function and increase team mistakes and avoidance (Riskin, 2018; Leonard, Graham & Bonacum, 2012).

When employees feel supported and have a strong sense of trust, safety and belonging in their workplace community, they are more resilient in the face of challenges. Studies show a high failure rate of projects, strategic initiatives or mergers—each over 50%--due to unsafe behaviour (Reisyan, 2017).

The movement to create socially safe workplaces is not just another workplace wellness fad; it's a fundamental shift in how we think about the function and performance of our workforce. For Australian businesses, it represents a clear path to not only meeting legal obligations but also building a more resilient, high-performance, people-centred organisation that furthers the purpose for which the organisation exists.

Psychosocial Hazards: What They Are and How to Spot Them

For businesses looking to create a genuinely psychologically safe workplace, understanding and identifying often hidden psychosocial risks is the first crucial step.

Psychosocial risks are aspects of work that can cause psychological harm. Unlike a physical hazard, you can't see or touch a psychosocial hazard, but you can see its effects. They are the patterns in the experience of work that create stress and, if left unmanaged, can lead to psychological or physical injuries. The Australian Work Health and Safety Strategy 2023-2033 specifically highlights the need to address these hazards to protect mental health and wellbeing.

To effectively manage these risks, you first need to know what to look for. Here are some of the most common psychosocial hazards in Australian workplaces:

1. High Job Demands: This is often the first thing that comes to mind when we talk about workplace stress. It’s not just about long hours; it's about the intensity of the work, conflicting demands, or a lack of clarity around priorities. An example might be a worker who is consistently given unrealistic deadlines, leading to a constant state of pressure and anxiety.

2. Low Job Control: This hazard relates to a lack of influence over how and when work is done. A worker who has no say in their schedule, can't make decisions about their tasks, or feels micro-managed can experience a sense of helplessness and stress. Granting even a small degree of autonomy can be a powerful control measure.

3. Poor Support: This can come from managers, supervisors, or colleagues. A lack of support means a worker feels isolated, unable to seek help, or believes their concerns won't be taken seriously. This is a significant risk factor, particularly in high-pressure roles. Effective manager training and fostering a supportive team culture are key to mitigating this hazard.

4. Poor Organisational Change Management: Change is inevitable, but when it’s poorly communicated or implemented, it can be a major source of stress. Workers may feel uncertain about their future, fear job losses, or feel they haven't been consulted, leading to feelings of betrayal and anxiety.

5. Bullying and Harassment: This is a clear and direct psychosocial hazard. Bullying can take many forms, from overt aggression to subtle exclusion and undermining. It creates a hostile work environment that can have severe psychological consequences for the individuals involved. Australia's WHS laws place a strong emphasis on preventing and responding to these behaviours.

6. Poor Relationships and Organisational Justice: This includes issues like a lack of fairness in reward systems, unequal opportunities, or a lack of trust in leadership. When workers feel they are being treated unfairly or that their contributions aren’t recognised, it can lead to resentment, disengagement, and psychological distress.

How to Spot Them in Your Workplace Identifying these hazards requires more than a simple inspection. You need to look at both data and people.

• Data: Reviewing records on absenteeism, staff turnover, sick leave, and workers' compensation claims can reveal patterns. An increase in sick leave on Mondays, for example, could be a sign of a deeper issue.

• People: The most effective method is direct consultation. Talk to your employees. Use anonymous surveys, facilitate focus groups, and create open lines of communication. Ask questions about workload, support, clarity of roles, and workplace relationships. This is a legal requirement under Australian WHS laws and is critical to gaining a true picture of your workplace's health.

By proactively looking for these hazards, you can move beyond a reactive "fix-it-after-it-happens" approach to a preventative strategy that protects the mental and physical wellbeing of your entire team. Key to prevention is fostering a safe and respectful communication culture in the organisation.

Professor Loraleigh Keashly say, one of the world’s leading workplace bullying prevention researchers, says ‘organisational culture  and climate influence and are influenced by the nature and quality of working relationships (Keashly, 2023).

This important statement highlights that, in order to identify risks and implement effective psychosocial risk controls, we must improve the relational and communication culture of the workplace. Creating an environment that supports consultation and innovation that allows us to identify and improve aspects of work that if unaddressed cause harm. Conversely, by improving aspects of work design that can cause harm, we will improve the relational climate in the workplace.