Managing Psychosocial Hazards in the Workplace

Managing Psychosocial Hazards in the Workplace

 

The Law Around Psychosocial Hazards in the Workplace – What You Need to Know

In late 2021, SafeWork NSW released a Code of Practice titled “Managing Psychosocial Hazards at Work”, outlining the legal requirements for organisations to either eliminate or minimize psychosocial hazards as much as reasonably practicable. Over the following years, the safety regulator has increased awareness through inspections, often asking businesses, “What processes do you have in place for managing psychosocial hazards?” Failure to comply has led to enforcement actions, starting with Improvement Notices and escalating to more severe penalties.

By 2024, the regulator’s stance has become stricter, assuming organisations have had ample time to comply voluntarily. Businesses that have ignored these obligations may face regulatory actions due to worker complaints, which typically stem from a lack of support or a failure to address concerns related to workplace psychosocial hazards.

Unfortunately, these situations often reveal a lack of understanding and preparedness, resulting in frantic calls for external help.

Recent High-Profile Infringements

In October 2023 the Sydney Morning Herald ran a news story around the staff exodus from a major Sydney hospital amid ‘toxic’ bullying claims. SafeWork NSW investigated and issued a series of penalty notices for “failing to manage the impact of work-related psychosocial stressors on staff”.

Across the city, a few weeks later at a large construction site involving multiple contractors, SafeWork also issued Provisional Improvement Notices on a large contractor for failing to manage psychosocial risks to its workers. The contractor reached out to BWC Safety to conduct an independent investigation. After interviewing dozens of workers and managers one thing was clearly evident – the whole concept of psychosocial hazards was poorly understood by the managers and supervisors.

Sadly, these are fairly typical outcomes for organisations that have concentrated on what they perceive to be their core business and have ignored their legal obligations to manage psychosocial risks to workers. As leading WHS consultants we note that these issues are becoming more prevalent and a focal point for the safety regulator in each state.

Common examples of psychosocial hazards in the workplace include:

Job content and demands: Overload, unpredictable hours, and lack of control can lead to long-term stress.

Lack of role clarity: Ambiguous or conflicting job roles increase psychological strain and uncertainty.

Poor workplace relationships: Bullying, harassment, poor leadership, and social isolation are among the most toxic types of psychosocial hazards.

Organisational structure and climate: Limited participation in decision-making, unclear objectives, and perceived inequality contribute to stress.

Poor job security and uncertainty: Lack of chance to progress, uncertainty in employment, and ambiguity may cause insecurity and stagnation.

Sustained poor work-life balance: When the elements of work encroach on the other aspects of life and vice versa, then the concept known as burnout takes effect and exposes the participants to various negative impacts.

Remote or isolated work: Separation from colleagues can increase feelings of vulnerability and isolation.

Organisational change: Poorly managed changes induce uncertainty and stress.

Exposure to violence or traumatic events: Professions like first responders are at higher risk of post-traumatic stress.

The implications of these hazards include mental health disorders, burnout, absenteeism, reduced productivity, and high staff turnover. Properly identifying and managing psychosocial risks is critical to creating a safe, healthy, and productive work environment. For guidance, organisations can refer to the NSW Government’s Code of Practice on

Managing Psychosocial Hazards

The key to managing psychosocial hazards in the workplace is to apply the four-step Risk Management Model:

Identify Hazards: This crucial first step is often missed, with organisations only responding once an issue has escalated. Proactive management means seeking regular feedback on psychosocial risk factors in the workplace, not just waiting for an incident to occur.

Assess Risks: Once you have identified the hazards, assess how severe these psychosocial risks are to your workforce.

Control Risks: The steps include minimizing or eradicating the psychosocial hazards through putting in place controls. This could entail changing the nature of the tasks performed, enhanced communication or provision of employees’ support programmes.

Review Controls: It is also important to review the suitability and efficiency of these risk controls from time to time and apply them in the management of psychosocial health.

I think we have a problem – what should we do?

Having read this far, there is a fair chance that you are concerned that your organisation:

a) may have an impending issue,
b) has little or nothing in place,
c) doesn’t know what to do next

One of the recommendations in the Code of Practice for firms who are struggling to understand or manage psychosocial hazards is to engage the services of an external safety consultant with experience in this area. The benefits of engaging external help like both in their previous experience and also their independence.

One of the recommendations from the NSW Government’s Code of Practice is to engage an external safety consultant. These professionals can hold confidential discussions with staff, assess the work environment for psychosocial risks, and provide recommendations for improvement. Once key issues are identified, management must consult with workers and their representatives on how to address them. Forming a WHS committee, if one doesn’t exist, is often an essential first step to prioritising actions and monitoring progress.

Seek help if you lack experience

Dealing with psychosocial hazards in the workplace can be challenging, especially for managers and supervisors who are good at their trade but lack the experience to investigate the issues and consultatively work through solutions. A botched attempt can cause more distrust and harm. We would strongly recommend seeking assistance from an independent safety consultant with a demonstrated track record in investigating and facilitating the management of psychosocial risks.

Contact BWC Safety for support, advice and to get a consultation.