Understanding and Managing Psychosocial Hazards in the Workplace

Workers’ compensation claims related to psychosocial hazards in the workplace are on the rise, with mental health conditions resulting in significant time lost from work. In 2021-22 alone, serious claims resulted in a staggering 584,029 working weeks lost due to these conditions. As part of National Safe Work Month, which includes World Mental Health Day on October 10, the focus is on understanding and managing psychosocial hazards at work.

What are Psychosocial Hazards?

Psychosocial hazards are elements in a work environment that may cause psychological harm. These hazards arise from various factors which may be due to work design, work environment, workplace interactions or behaviours, or equipment and systems being used. If psychosocial hazards are left unmanaged, it may eventuate into physical harm, impacting the wellbeing of Australian workers.

Legal Obligations for Managing Psychosocial Hazards

A Person Conducting a Business or Undertaking (PCBU) has a duty to eliminate or minimise (if elimination is not possible) risks to workers' psychological and physical health, so far as is reasonably practicable. To comply, employers must follow the risk management process adequately.

The Risk Management Process

Managing psychosocial hazards should follow the same risk management process used for physical hazards, which involves:

1. Identifying hazards: Determine what could cause harm.
2. Assessing risks: Understand the potential harm and its likelihood.
3. Controlling risks: Implement the most effective measures to eliminate or minimise risks.
4. Reviewing controls: Regularly assess the effectiveness of control measures and make improvements as needed.

Employers are required to involve workers in the risk management process. This collaboration ensures that hazards are accurately identified, and solutions are practical and effective. Engaging with leaders, managers, and safety representatives at the early stages helps in designing better control measures and minimising harm.

Planning for the Future

It’s important to proactively address psychosocial risks during organisational changes to prevent costly mistakes and reduce harm to workers. Larger businesses or those with higher exposure to psychosocial risks may need more comprehensive management systems.

For more information on managing these hazards, you can access the People at Work Tool here. Taking these steps can lead to a healthier, safer workplace for all.

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Sources

How to identify and manage psychosocial hazards is everyone's business - Safe Work Australia, October 2024

Managing psychosocial hazards at work - Code of Practice - Safe Work Australia, July 2022.