In today’s rapidly evolving workplace landscape, creating a psychosocially safe environment is not just a legal obligation, but a strategic imperative that directly impacts your organisation and individual resilience, productivity, and the bottom line.
Recently, I hosted The Future of Work – Prioritising Psychosocial Safety, an event held in Melbourne in partnership with Converge (world leading EAP provider). At the event, keynote speaker, Brett Webb, National Psychosocial Risk Manager at Converge, explored the impact that psychosocial safety has on productivity and employee wellbeing, as well as its ethical, legal and financial implications. Below are our key takeaways.
Key Takeaways on Psychosocial Risk and Legislative Changes
1. Victoria’s Legislative Shift to Maintaining Parity
Victoria is aligning with national workplace safety standards by introducing new psychosocial risk regulations, effective from 1 December 2025. The legislation does fundamentally change existing workplace safety laws and it explicitly mandates compliance and motivates authorities to enforce these standards more rigorously. The introduction of dedicated psychosocial inspectors highlights a clear intent to prioritise this area.
2. Key Psychosocial Risks Identified
Of the 14 risk factors the top three psychosocial risks and their contributing factors affecting workplaces are:
- Change Management – Clear communication, effective planning, and thorough consultation reduces workplace stress.
- Organisational Justice – Employees are experiencing inconsistencies in policies, fairness in decision-making, and workplace treatment.
- Job Demands – Inadequate staffing and lack of management support significantly contribute to employee stress.
Addressing these risks requires a strategic focus on leadership, clear communication, and structured support systems.
3. The Business Case for Wellbeing Over Engagement
While employee engagement has traditionally been seen as a key driver of productivity, emerging research suggests that wellbeing may be a more significant predictor of business success. Despite widespread engagement initiatives, engagement levels have remained stagnant for over 20 years. Companies should consider prioritising wellbeing alongside engagement to drive real cultural shift.
4. Practical Approach to Risk Assessment and Mitigation
Organisations must take a data-driven approach to psychosocial risk assessment, leveraging:
- Surveys to assess risks and identify demographic specific insights
- Focus groups that identify contributing factors and root cause to improve implementation success
- Risk Mitigation that utilises the ‘hazards identification process’ to make informed decisions that prioritise high psychosocial risks and to address the root cause
A holistic and integrated risk assessment model combining psychosocial and physical risks can enhance workplace safety and organisational effectiveness.
5. Leadership’s Role in Driving Cultural Change
Leadership is the most critical factor in fostering a psychologically safe workplace. Key strategies include:
- Embedding psychological safety as a leadership priority.
- Developing emotional intelligence and self-awareness among leaders
- Ensuring meaningful communication rather than just procedural updates
- Building trust through consistent actions and transparent policies
Effective leadership in this space is about an ongoing, structured development approach that supports a culture of trust, fairness, and proactive change management.
Final Thought
The evolving landscape of workplace safety, particularly in psychosocial risk management, presents both a regulatory obligation and a strategic opportunity. Organisations that integrate wellbeing, engagement, and cultural alignment into their leadership and operational strategies will gain a competitive edge in talent attraction, retention, and overall business performance.
What are some of the initiatives your organisation is implementing to ensure psychosocial safety in your workplace? Post your comments here or on socials using the hashtags #psychosocialsafety and #TRANSEARCHau.
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Sandra has in excess of 30 years recruitment and consulting experience within the Health and Human Services sectors across Australia, and internationally in New Zealand and America. She complements her consulting career with industry experience where she worked in a senior Human Resources Leadership role in a major teaching hospital in Boston. Well known for her consultative approach, Sandra has developed a reputation as a leading industry specialist, having placed a range of CEOs and senior executives across the sectors and facilitated initiatives including talent acquisition, talent management and organisational excellence. Read more…
