The business impact of psychosocial risk
Psychosocial hazards can arise from the way work is designed, organised and managed, as well as workplace interactions and behaviours.
Examples can include excessive job demands, poor support, bullying and harassment, workplace conflict, poor organisational change management, traumatic events and other factors that may cause psychological or physical harm.
When these risks are difficult for employees to raise - or organisations lack visibility of where and how frequently they are occurring - emerging problems can go unidentified until they contribute to psychological injury, absence, workers compensation claims, employee disengagement or turnover.
Psychological harm & absence
Exposure to psychosocial hazards can contribute to psychological harm and may affect an employee’s capacity to remain at or return to work.
Reduced productivity & engagement
High workloads, workplace conflict, poor support and other psychosocial hazards can affect employee engagement, performance and organisational culture.
Limited visibility of emerging risks
Traditional reporting may miss employee concerns, limiting visibility of emerging risks, recurring hazards and hotspots.
Increasing WHS obligations
Employers must have processes to identify and manage psychosocial risks, implement appropriate controls and monitor their ongoing effectiveness.