Top three things you need to know for psychosocial risk management

We spend over a third of our lives at work, and what happens at work profoundly affects both our physical and mental wellbeing.

Increasing amounts of evidence show that work-related factors, ranging anywhere from high workloads to poor recognition and reward, can contribute to mental harm in workers.

What makes a difference? If you work in health and safety, you’re likely familiar with the principles of risk management. For those new to this concept, don’t let the terminology intimidate you.

Psychosocial risk management simply means managing different aspects of work to prevent harm (mental and physical). Every workplace contains psychosocial hazards and risks – factors that can negatively impact on employees. It takes collective responsibility to design work in a way that either eliminates or minimises these risks. Employers also have a legal duty to ensure that employees are protected from harm. In the best cases, workplaces can even promote wellbeing.

Although the concept of psychosocial risk management can feel complex, it doesn’t have to be overwhelming. Here are the top three things you need to know for effective psychosocial risk management.

1. Get your definitions right

When discussing psychosocial risk management, two key terms often pop up: psychosocial hazards and psychosocial risks. Hazards and risks are fundamental ideas in safety management – so it’s important we get these definitions right.

Here’s a helpful analogy: imagine you’re standing on the beach and notice a shark in the water. The shark represents a hazard – because it has the potential to cause harm. But there is only a risk of harm if you decide to swim in the water, if the shark is aggravated, or if there are other environmental factors that make a shark attack likely.

Psychosocial hazards (things like interpersonal conflict, isolated work, fatigue, low job control, and high rates of change) exist in every workplace, but how much risk they pose to people can differ depending on the organisation, the individual, how much support is in place, and what is being done to control the risk.

Greater risk can occur, for example, when there is a significant imbalance between the demands placed on a person, and the resources they have to cope with those demands.  Take a first responder as an example. The risk of mental harm from responding to traumatic events (job demand) is increased if that first responder has a crushing backlog of cases to attend to (job demand) and there is a lack organisational support to discuss struggles or take time off to recover (job resources).

2. Take the lead from existing processes

The next thing you need to know for psychosocial risk management is that managing psychosocial hazards doesn’t require reinventing the wheel. It’s about following a systematic process. A commonly adopted approach is using the four-step process for risk management.

We’ve illustrated this process to bring it to life with an example of a small restaurant owner following each of these steps.

Step 1: Identifying hazards

• Psychosocial hazards and risks can be identified by talking and listening to your employees, inspecting your workplace, making observations of how your employees interact, reviewing records and reports, and using surveys like the Wellbeing Assessment to gather information from employees.
• A small restaurant owner observed signs of stress among employees and engaged in one-on-one conversations, followed by a team meeting, to find out that a lack of clarity around roles, unpredictable shifts, and not enough breaks during busy times were contributing to the problem.

Step 2: Assessing risks

• Once hazards are identified, evaluate the likelihood and potential impact of those hazards. Think about how often and for how long employees are exposed to the hazard and the severity of the harm it would cause.
• Based on sick leave and anecdotal evidence, the restaurant owner realised that these issues had been ongoing for months and were seriously affecting the wellbeing of multiple team members. This made it a priority area for him to act on.

Step 3: Controlling risks

• Where possible, eliminate the risk. This is always the safest option, but if it isn’t possible, minimise the risk through targeted interventions.
• The restaurant owner introduced clear job descriptions, so everyone knew their responsibilities, created a more predictable shift schedule with input from staff, and ensured regular breaks to reduce fatigue. Weekly team meetings were also introduced so employees could raise any concerns and suggest improvements.

Step 4: Reviewing

• Risk management is an ongoing process. Regularly review control measures to ensure they are still effective and adjust them as needed based on new information or changes in the workplace.
• The restaurant owner committed to reviewing his control measures every three months by checking in with staff and encouraging feedback to make sure the new measures were still working effectively.

As you can see from our example with the small business owner, you don’t need to carry out a complicated risk assessment to understand your workplace and your people. The simple four-step framework can make a huge difference.

3. Prioritise management commitment and consultation with employees

The final key to effective psychosocial risk management is having strong support from management and involving employees in the process. This tip cannot be overlooked and is the reason why many interventions end up failing.

Research shows that when leaders are genuinely committed to improving workplace wellbeing, employees are more likely to get involved. If employees see that management is serious about creating a safe and healthy work environment, they will be more engaged in the process.

It’s also important to involve employees at every stage—from identifying issues to finding solutions and reviewing how well they work. Your employees know the workplace better than anyone, so it’s essential to listen to their feedback. Creating a culture where employees feel safe to speak up ensures that any changes you make will be relevant and effective. If you’re not sure, our Umbrella Wellbeing Assessment is a good place to start.