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    Managing Psychosocial Risks

    The four-step process for identifying, assessing, controlling, and reviewing psychosocial hazards in your workplace.

    Written by Christian Ratten, Workplace Psychologist

    The Process is the Same

    Managing psychosocial risks follows the same process you use for any other workplace health and safety risk.

    There's nothing mysterious or complicated about it. If you can manage risks from machinery, chemicals, or working at heights, you can manage psychosocial risks.

    The four steps are:

    1
    Identify psychosocial hazards
    2
    Assess the risks
    3
    Control the risks
    4
    Review your controls

    This is the risk management process required under Australian WHS law and it's outlined in Safe Work Australia's Code of Practice on Managing Psychosocial Hazards at Work.

    Step 1

    Identify Psychosocial Hazards

    Find out what's happening in your workplace

    The first step is identifying which psychosocial hazards are present in your workplace. You can't manage risks you don't know about.

    How to identify psychosocial hazards:

    • Workers know what's happening on the ground—they're your best source of information
    • Use surveys, focus groups, toolbox talks, or one-on-one conversations
    • Ask open questions: "What makes your job stressful?" or "What would make this work easier?"

    Consider all 14 psychosocial hazards:

    1Job demands
    2Low job control
    3Poor support
    4Lack of role clarity
    5Poor organisational change management
    6Inadequate reward and recognition
    7Poor organisational justice
    8Traumatic events or material
    9Remote or isolated work
    10Poor physical environment
    11Violence and aggression
    12Bullying
    13Harassment (including sexual harassment)
    14Conflict or poor workplace relationships
    Learn about all 14 hazards

    Key point: Don't wait for complaints to identify hazards. Be proactive.

    Step 2

    Assess the Risks

    Determine which risks need action first

    Once you've identified psychosocial hazards, the next step is assessing the level of risk they create.

    What you're assessing:

    Likelihood

    How often are workers exposed to this hazard? How many workers are affected?

    Severity

    If harm occurs, how serious would it be? Could it result in psychological injury, or just minor stress?

    Duration

    Is the exposure ongoing or temporary? Are workers exposed for hours, days, weeks, or longer?

    Interactions

    Are multiple hazards occurring together? Is one hazard making another worse?

    Example:

    High job demands (e.g., long shifts with tight deadlines) might be manageable if workers have good support, adequate resources, and control over how they work. But if they're also experiencing poor support and lack of control, the combined risk is much higher.

    Prioritize your response:

    Focus on the hazards that create the highest risk:

    • Those affecting the most workers
    • Those with the potential for serious harm
    • Those that are frequent or prolonged

    You don't need to fix everything at once—but you do need to address the highest risks first.

    Step 3

    Control the Risks

    Eliminate or minimise hazards at their source

    This is where you take action to eliminate or minimise psychosocial risks.

    Under WHS law, you must eliminate risks where reasonably practicable. If elimination isn't possible, you must minimise the risks so far as is reasonably practicable.

    The Hierarchy of Controls

    Controls are most effective when they target the hazard at its source. Use the hierarchy of controls:

    Important: PPE-level controls (like training or EAPs) should never be your only response. They don't eliminate or minimise the hazard—they just help workers cope with it.

    Examples of effective controls:

    Controls for High job demands:

    • Increase staffing levels
    • Adjust deadlines or workloads
    • Prioritize tasks and remove non-essential work
    • Provide adequate resources and equipment
    Step 4

    Review Your Controls

    Make sure controls are working

    Risk management doesn't stop once you've implemented controls. You need to review them regularly to ensure they're effective.

    When to review:

    Regularly

    • Schedule reviews at least annually
    • More frequently for high-risk hazards

    When things change

    • Before implementing changes (like restructures, new rosters, or new technology)
    • After changes have been made, to check the impact

    When controls aren't working

    • If workers report that controls aren't effective
    • If incidents, complaints, or injuries occur
    • If monitoring shows risks aren't being reduced

    After incidents or complaints

    • Review what happened and why
    • Determine if controls need to be adjusted

    How to review:

    Ask yourself:

    • Have we eliminated or minimised the hazard?
    • Are workers less exposed to risk?
    • Do we need to do more?

    If controls aren't working, adjust them. Don't assume that because you've "done something," the risk is managed.

    Consultation is Essential

    Involve workers at every step

    Consultation with workers isn't just good practice—it's a legal requirement.

    Workers must be consulted when you're:

    • Identifying hazards
    • Assessing risks
    • Deciding on control measures
    • Reviewing the effectiveness of controls
    • Making changes that might affect health and safety

    Why consultation matters:

    Workers are the people who experience psychosocial hazards firsthand. They know:

    • What's actually happening in the workplace
    • Which hazards are causing the most problems
    • What controls are likely to work (and which won't)

    How to consult effectively:

    1
    Ask open questions and genuinely listen
    2
    Create safe ways for workers to raise concerns (anonymously if needed)
    3
    Involve Health and Safety Representatives (HSRs) and Health and Safety Committees
    4
    Consider workers' input when making decisions
    5
    Communicate back to workers about what you've decided and why

    Warning: Poor consultation is worse than no consultation—if workers feel their input is ignored, it damages trust and makes future consultation harder.

    Keep Records

    Document what you're doing

    You must keep records of your risk management activities.

    What to document:

    • Hazard identification activities (surveys, consultation, observations)
    • Risk assessments
    • Control measures implemented
    • Consultation with workers
    • Reviews of controls
    • Incident reports and complaints
    • Actions taken in response to incidents or complaints

    Why records matter:

    They demonstrate you're meeting your legal duties
    They help you track what's working and what's not
    They're essential if a complaint is made or an inspector visits
    They provide evidence of your due diligence

    ⚠️ If you can't show you've managed the risks, a regulator may conclude you haven't—even if you've done the work informally.

    Common Mistakes to Avoid

    What not to do

    Relying only on policies or training

    Policies and training don't eliminate or minimise hazards—they're the least effective controls. Always focus on changing work design, systems, and management practices first.

    Waiting for complaints

    Don't wait for someone to complain before identifying hazards. Be proactive.

    Treating psychosocial risk as a "mental health issue"

    Offering EAPs or resilience training doesn't eliminate hazards at their source. These supports can help, but they're not substitutes for proper risk management.

    Skipping consultation

    You're legally required to consult workers—and it leads to better outcomes. Don't skip this step.

    Assuming controls are working

    Review your controls regularly. Don't assume they're effective just because you've implemented them.

    Doing it once and stopping

    Risk management is ongoing. Hazards change, circumstances change, and controls need to be reviewed and updated.

    Getting Started

    Where to begin

    If you haven't started managing psychosocial risks yet, here's how to begin:

    1

    Educate yourself

    • Understand what psychosocial hazards are
    • Learn about the 14 specific hazards
    • Understand your legal duties
    Learn about hazards
    2

    Consult with workers

    • Ask them what's causing stress, frustration, or harm
    • Use the 14 hazards as a framework for discussion
    3

    Prioritize

    • Identify which hazards are creating the highest risks
    • Start with those
    4

    Take action

    • Implement controls that target the hazard at its source
    • Focus on work design and systems, not just training or policies
    5

    Review

    • Check whether your controls are working
    • Adjust as needed

    You don't need to solve everything at once—but you do need to start.

    Free 2-Minute Assessment

    Are You Meeting Your Legal Duties?

    Most businesses have significant gaps in their approach to psychosocial hazards—and don't realise it until a complaint triggers an investigation. Find out where you stand before a regulator does.

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    When to Seek Support

    You don't have to do this alone

    Most businesses can make significant progress using the guidance available on this site. But sometimes, external support can save time and ensure you're meeting your duties effectively.

    Consider seeking advice if:

    • You're unsure how to identify or assess psychosocial risks in your workplace
    • You need help designing effective control measures
    • You want an independent review of your systems
    • You've received a complaint or improvement notice
    • You're planning significant changes and want to get ahead of potential risks

    A confidential conversation with someone who understands psychosocial risk management and your industry can provide clarity and practical guidance.

    Let's chat