The pressure is rising and so are the claims

Australian workplaces are under strain.
The AHRI Psychosocial Risks Report 2025 found a significant increase in the number of psychosocial hazard complaints and claims in the 12 months to October 2024. The top two causes?

• High job demands

• Conflict or poor workplace relationships and interactions

Behind these statistics are real people — overwhelmed employees, stretched managers, and teams losing connection amid constant change.

Research shows that chronic job demands (like excessive workload or role ambiguity) are among the strongest predictors of burnout and disengagement (Bakker & Demerouti, 2017). When these demands are left unmanaged, organisations see higher absenteeism, turnover, and even compensation claims — costing Australian businesses billions annually.

At Steople, we believe these issues aren’t just HR challenges; they’re leadership and data challenges. When leaders are equipped with the right insight — through assessment, feedback, and coaching — they can spot the warning signs early and create healthier, higher-performing teams.

Leadership capability: The missing piece in psychosocial health

Despite clear evidence that leadership capability is critical to wellbeing, only 28% of employers invest in building leadership and management capability to reduce psychosocial risks.

That gap matters. Studies in organisational psychology have consistently found that leader behaviours — empathy, fairness, communication, and clarity — are among the strongest protective factors for mental health at work (Kelloway & Barling, 2010). Leaders shape not only performance but also the emotional climate of the workplace.

This aligns with our experience at Steople.
When we work with organisations through our Leadership Development Programs, Psychological Safety Assessments, and Coaching for Behaviour Change, we see measurable improvements in team wellbeing, trust, and engagement. Leaders learn to recognise early signs of distress, manage workloads constructively, and foster environments where people feel safe to speak up.

Because leadership isn’t just about delivering outcomes, it’s about creating the conditions where people can thrive.

Data and dialogue: The foundation for sustainable culture

The AHRI report reinforces that psychosocial risks are no longer peripheral concerns; they sit at the heart of sustainable organisational performance.
This finding echoes decades of research linking wellbeing and productivity. Studies by Gallup (2023) and Harter et al. (2002) found that teams with high engagement and psychological safety outperform others across every major metric — from retention to profitability.

But psychological health isn’t built through one-off wellness initiatives. It requires data-driven insight and consistent dialogue.

That’s why Steople partners with organisations using our Assessment and Survey Tools, such as:

• Steople High-Performance Teams Survey™ — helps identify where collaboration and civility are breaking down.

• Steople Leading for Performance and Wellbeing 360 Assessment — gives leaders the self-awareness to manage psychosocial risks through behaviour change.

• Steople Engagement & Wellbeing Survey™ — measures employee perceptions of workload, support, culture, and purpose.

When leaders and teams have clear, objective insight into what’s working and what’s not, they can take targeted action that strengthens culture and wellbeing long-term.

From compliance to capability

Psychosocial risk management is now embedded in Australian workplace legislation — but focusing solely on compliance misses the opportunity for transformation.

Effective organisations treat psychosocial health as a strategic capability. They invest in building psychologically safe cultures, where people can raise concerns, seek support, and experiment without fear of blame. Research by Edmondson (2019) shows that teams high in psychological safety are more innovative, collaborative, and resilient in the face of change.

At Steople, we help clients move beyond minimum standards by:

• Developing leaders who can respond constructively to stress and conflict.

• Designing roles and structures that balance job demands with autonomy.

• Embedding wellbeing practices into daily rhythms — from coaching to team reflection sessions.

Our approach blends psychological science with pragmatic leadership development, helping organisations reduce risk while unlocking the human potential that drives performance.

Building workplaces where people flourish

As workplaces evolve through technology, hybrid models, and shifting expectations, psychosocial health is emerging as one of the defining challenges of modern leadership.
But it’s also one of the greatest opportunities to redesign work in a way that’s both productive and humane.

The evidence is clear:
✅ Strong leadership capability reduces psychosocial risks.
✅ Data and assessment turn intuition into insight.
✅ Wellbeing and performance aren’t opposites — they’re interdependent.

When organisations invest in their leaders and measure what matters, they don’t just comply with regulation — they create workplaces where people feel valued, connected, and motivated to perform at their best.

At Steople, we call that sustainable success through people.

If your organisation is ready to strengthen its psychosocial health and leadership capability, we can help.
Contact us to learn more