Managing Psychosocial Risks in the Workplace:
A Guide for Australian SME's
In Australia, managing psychosocial risks in the workplace is more than just a recommendation—it’s a legal requirement. Recent updates to WHS legislation across states mandate that all employers assess and address psychosocial hazards that impact employee mental health and well-being. For small to medium business owners, this means understanding and mitigating risks such as job demands, organisational justice, and workplace relationships.
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This guide outlines the 14 psychosocial hazards specified by WHS legislation, the impacts of each, and how the STAR Workplace Program can support small to medium businesses in assessing, benchmarking, and managing these risks.
What are Psychosocial Risks, and Why Do They Matter for SME's?
Psychosocial risks are aspects of work design and management that can harm employees’ mental health if unaddressed. These risks can lead to increased turnover, reduced productivity, and serious compliance issues. For SMEs, proactively managing psychosocial risks offers multiple benefits, including improved employee retention, reduced absenteeism, and better overall organisational performance.
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Takeaway: The STAR Workplace Program provides SMEs with a data-driven approach to identify and manage these risks effectively, helping businesses maintain compliance and create healthier workplaces.
The 14 Psychosocial Hazards in WHS Legislation
Australian WHS legislation identifies 14 psychosocial hazards that employers must address. Here’s an overview of each hazard, its impacts, and practical ways to manage it.
01
Job Demands
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Description: Excessive workload, unrealistic deadlines, or high emotional demands.
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Impact: High job demands lead to stress, burnout, and disengagement.
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Solution: STAR’s data can help assess workload balance, enabling businesses to set realistic expectations and redistribute tasks as needed.
02
Job Control
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Description: Limited autonomy in task management, schedules, or decision-making.
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Impact: Low control over work can increase stress and reduce job satisfaction.
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Solution: Offer flexibility and autonomy where possible, and involve employees in decision-making processes.
03
Poor Support
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Description: Insufficient support from managers, peers, or organisational resources.
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Impact: Lack of support reduces morale, increases stress, and can lead to turnover.
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Solution: Implement regular check-ins, foster open communication, and ensure that support systems are in place and accessible.
04
Role Clarity
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Description: Ambiguity in job responsibilities or expectations.
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Impact: Role confusion increases stress, anxiety, and reduces productivity.
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Solution: Use STAR insights to ensure clear job descriptions and regular reviews of role expectations with employees.
05
Organisational Change Management
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Description: Ineffective handling of organisational changes, such as restructuring or layoffs.
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Impact: Poor change management increases employee anxiety, reduces trust, and lowers engagement.
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Solution: Implement structured change processes, including regular updates and involving employees in transition planning.
06
Reward and Recognition
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Description: Failure to recognise or reward employees’ efforts and achievements.
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Impact: Lack of recognition leads to disengagement and increases the likelihood of employees seeking work elsewhere.
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Solution: Develop regular recognition programs to celebrate employee contributions, and use STAR metrics to assess the impact on morale and retention.
07
Organisational Justice
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Description: Perceived unfairness in policies, decision-making, or disciplinary actions.
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Impact: Employees who feel that workplace justice is lacking may experience resentment, stress, and reduced engagement.
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Solution: Ensure that policies are applied consistently and fairly. STAR insights can help identify areas for improvement in organisational justice.
08
Traumatic Events or Material
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Description: Regular exposure to distressing situations, such as accidents, injuries, or sensitive content.
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Impact: Exposure to trauma can lead to anxiety, depression, and other mental health challenges.
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Solution: Provide mental health resources, offer debriefing sessions after traumatic events, and ensure employees know where to access support.
09
Remote or Isolated Work
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Description: Working alone or in isolated locations where immediate support may not be available.
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Impact: Isolation can lead to loneliness, increased stress, and heightened risk in emergencies.
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Solution: Conduct regular virtual check-ins, establish peer support networks, and provide resources to ensure remote worker safety.
10
Physical Environment
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Description: Uncomfortable or unsafe physical work conditions, such as poor lighting, noise, or inadequate facilities.
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Impact: Poor environments can cause physical discomfort, reduce concentration, and increase stress.
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Solution: Regularly assess and improve physical workplace conditions to ensure they are safe, comfortable, and conducive to productivity.
11
Workplace Violence and Aggression
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Description: Exposure to physical or verbal aggression in the workplace.
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Impact: Violence and aggression increase fear, reduce morale, and can lead to lasting psychological harm.
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Solution: Establish and enforce anti-violence policies, provide conflict resolution training, and encourage employees to report incidents.
12
Bullying
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Description: Repeated harmful or disrespectful behaviour, including intimidation or exclusion.
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Impact: Bullying damages mental health, reduces morale, and leads to high turnover.
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Solution: Implement a zero-tolerance bullying policy, provide reporting mechanisms, and conduct regular climate surveys to monitor workplace culture.
13
Harassment, including Sexual and Gender-Based Harassment
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Description: Unwanted behaviour of a sexual nature or behaviour that targets someone based on gender or other protected characteristics.
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Impact: Harassment creates a toxic work environment, increasing anxiety and reducing productivity.
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Solution: Enforce anti-harassment policies, provide training, and make reporting processes accessible and anonymous.
14
Conflict or Poor Workplace Relationships and Interactions
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Description: Frequent conflicts or negative interactions between colleagues or supervisors.
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Impact: Conflict creates a hostile work environment, increasing stress and decreasing teamwork.
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Solution: Encourage open communication, offer conflict resolution resources, and foster a supportive, inclusive workplace culture.
Taking Proactive Steps to Manage Psychosocial Risk with STAR
Effective psychosocial risk management requires ongoing effort and regular evaluation. Here’s how business owners can use STAR to take proactive steps:
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Register for a Psychosocial Risk Assessment:
Begin with STAR’s assessment to identify and understand psychosocial risk factors in your workplace.
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Review Benchmarks
Use STAR’s benchmarking data to set realistic improvement goals based on industry comparisons.
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Implement Actionable Plans
Address key risks, such as role clarity or conflict management, by implementing targeted changes.
04
Monitor and Adjust
Review your psychosocial risk metrics on an annual basis to ensure improvements are effective and sustained.
For Australian SMEs, managing psychosocial risks is crucial for compliance, employee well-being, and organisational success. Addressing these hazards not only ensures compliance with WHS legislation but also fosters a supportive, high-performing workplace that attracts and retains talent. The STAR Workplace Program provides the tools, insights, and benchmarking capabilities needed to create a proactive, resilient workplace.