Assessing Psychosocial Risks: A Guide for Small to Medium Business

In today’s fast-paced work environment, effectively managing psychosocial risks is crucial for the safety and performance of employees. This is especially important for small to medium-sized business owners, HR, WHS, and People and Culture Managers. Understanding and mitigating these risks can lead to a healthier, more productive workforce while significantly reducing the cost to a business, associated with psychological injuries.

Understanding Psychosocial Risks

Psychosocial risks in the workplace are those aspects of work design and the organisation and management of work, and their social and environmental contexts, which have the potential to cause psychological or physical harm. 

Access the list of potential psychosocial hazards here: Safe Work Australia.

The Impact of Psychosocial Risks

Psychosocial risks can lead to psychological injuries, which will have a significant impact on your employees and business. According to Safe Work Australia, work-related psychological injuries are a major contributor to the overall burden of occupational injuries and illnesses. In 2020, mental stress claims accounted for 6% of serious workers’ compensation claims in Australia.

Moreover, the costs associated with psychological injuries can be substantial. These costs include medical expenses, compensation payments, and lost productivity. It’s estimated that work-related stress costs Australian businesses up to $14.81 billion annually.

Success Stories in Managing Psychosocial Hazards

Here are some great outcomes that businesses have experienced from successfully managing psychosocial risks and creating healthier work environments.

1. Business A: A mid-sized tech company implemented a comprehensive mental health program that includes regular training for managers, access to an EAP and mental health resources, and an anonymous reporting system for bullying and harassment. As a result, they saw a 40% reduction in stress-related absenteeism and a 30% increase in employee engagement over two years.

2. Business B: A small manufacturing firm focused on improving work-life integration by introducing flexible working hours and promoting a culture of collective care. They also provided a mental fitness Lunch and Learn series of live webinars to their staff. These initiatives led to a significant decrease in burnout rates and a notable improvement in overall employee well-being and performance.

3. Business C: This medium-sized retail business addressed organisational injustice by conducting regular workshops on emotional intelligence related topics. They also adopted an Employee Assistance Program for employees to discuss their concerns confidentially. These measures helped in reducing staff turnover by 52% while improving team innovation.

Practical guide to help you Assess your Risks

1. Conduct Regular Surveys and Questionnaires:

   • Use anonymous surveys to gather employee feedback on your identified hazards.
   • Include specific questions, relating to the psychosocial hazards to identify what staff are actually experiencing.

2. Hold Focus Groups and One-on-One Interviews:

   • Organize small group discussions or individual interviews to gain deeper insights into employee experiences and concerns.
   • Encourage open dialogue and ensure confidentiality to build trust and gather honest feedback.

3. Review Workplace Data and Trends:

   • Analyse absenteeism rates, turnover rates, and productivity levels to identify patterns that may indicate psychosocial issues.
   • Examine workers’ compensation claims and incident reports related to psychological injuries.

4. Conduct Risk Assessments:

   • Utilize standardized risk assessment tools and checklists to evaluate potential psychosocial hazards.
   • Assess factors such as workload, work environment, job demands, and support systems.

5. Engage with Health and Safety Representatives:

   • Involve your WHS manager/s, HR personnel, and employee representatives, and/or external professionals in the assessment process.
   • Collaborate to assess risks so you can implement effective mitigation strategies.

6. Monitor and Evaluate Policies and Procedures:

   • Regularly review and update workplace Psychosocial WHS related policies.
   • Ensure these policies are effectively communicated and enforced within your organisation.

7. Implement a Reporting System:

   • Establish a clear, confidential process for employees to report psychosocial hazards and concerns.
   • Ensure prompt investigation and appropriate action in response to reports.

8. Provide Training and Awareness Programs:

   • Educate employees and managers about psychosocial risks, their impact, and how to best manage them.
   • Offer appropriate training where required and encourage a safe and healthy psychological culture.

By implementing these methods, you can effectively assess and address the risks associated with psychosocial hazards, creating a safer, healthier, and more productive work environment.