Emma had always been known as a strong, capable leader. She thrived in fast-paced environments and had a reputation for delivering results. Emma had recently taken on a promotion in a different organisation. With her new team, she sat in leadership meetings, wanting to challenge decisions she knew weren’t right, but the room felt tense. Speaking up wasn’t encouraged in this company.
Meanwhile, across the office, Ryan, a junior employee, was struggling under the weight of unrealistic workloads and poor job design. He was drowning in expectations but didn’t feel safe asking for help. His manager often dismissed concerns with, “Everyone is busy. You just need to push through.”
Both Emma and Ryan were experiencing workplace risks, but in different ways. Emma was navigating a lack of psychological safety; a workplace culture where employees feel unable to share ideas or voice concerns. Ryan, on the other hand, was battling psychosocial safety risks; hazards like excessive job demands, poor leadership support, and poor work design, all of which have a negative impact on mental health.
The bottom line is that neither felt safe at work.
Understanding Psychosocial vs. Psychological Safety
In today’s workplace, organisations are beginning to understand that safety isn’t just about physical hazards. But many still fail to differentiate between psychosocial safety and psychological safety, two distinct yet interconnected workplace elements.
Psychosocial Safety = Protecting employees from physical and psychological harm
It’s about reducing or eliminating workplace hazards that negatively impact employee mental health and wellbeing. These risks stem from workload, leadership behaviours, work structures, and culture.
In Australia and New Zealand, psychosocial safety is now a legal requirement, meaning employers must take proactive steps to identify and mitigate these risks.
Examples of psychosocial hazards include:
- High job demands – Employees are overworked and under-supported.
- Lack of role clarity – Confusing or conflicting responsibilities create frustration.
- Workplace bullying or incivility – A toxic culture causes psychological distress.
- Poor organisational change management – Rapid, unexplained changes create uncertainty and fear.
- Lack of leadership support – Employees feel isolated and undervalued.
Ignoring these risks can lead to burnout, high turnover, and even legal repercussions. Compliance alone isn’t enough. Removing risks doesn’t automatically create a thriving workplace.
Psychological Safety: Building a Culture of Trust and Innovation
If psychosocial safety is about preventing harm, psychological safety is about enabling growth. Coined by Harvard professor Amy Edmondson, psychological safety is about creating environments where employees feel safe to contribute, ask questions, and take risks without fear of embarrassment or punishment.
A psychologically safe workplace is one where employees feel comfortable:
✔ Sharing ideas, even if they challenge leadership
✔ Admitting mistakes and learning from them
✔ Asking for help when overwhelmed
✔ Voicing concerns about workplace issues
✔ Admitting mistakes and learning from them
✔ Asking for help when overwhelmed
✔ Voicing concerns about workplace issues
Google’s research on high-performing teams found that psychological safety was the single most important factor for team success. Without it, employees withhold ideas, avoid difficult conversations, and disengage from their work. Other research as whon that organisations whose employees report high levels of psychological safety also have lower levels of reported psychosocial hazards.
A company might have policies in place to protect employees from harm (psychosocial safety), but if employees still fear speaking up (lack of psychological safety), problems persist.
Why Organisations Need Both
Many businesses focus on one area while neglecting the other leading to incomplete workplace strategies.
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A business may invest in psychosocial safety, implementing policies to reduce burnout and manage workload risks. But if employees still fear speaking up about their concerns, the problems remain hidden.
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A company may foster psychological safety, encouraging open discussions and innovation. But if workplace structures create unmanageable stress, employees will continue to suffer.
To build a truly healthy and high-performing workplace, businesses must integrate both psychosocial and psychological safety by:
✔ Eliminating workplace risks that cause psychological harm (psychosocial safety)
✔ Fostering a culture where employees feel safe to contribute and grow (psychological safety)
✔ Fostering a culture where employees feel safe to contribute and grow (psychological safety)
When these two elements work together, workplaces see higher engagement, stronger leadership, and a culture of trust and innovation.
How Steople Helps Businesses Drive Real Change
At Steople, we take a holistic approach to workplace well-being, helping businesses embed psychosocial and psychological safety into culture, leadership, and operations.
Our four-step process helps organisations:
1️⃣ Identify and assess workplace psychosocial risks – Recognising hazards before they lead to burnout or disengagement.
2️⃣ Evaluate leadership and team dynamics – Ensuring that psychological safety is embedded into workplace culture.
3️⃣ Develop tailored interventions – Designing targeted strategies that address both risk factors and workplace challenges.
4️⃣ Implement and monitor progress – Supporting leaders and teams in driving long-term workplace improvements.
2️⃣ Evaluate leadership and team dynamics – Ensuring that psychological safety is embedded into workplace culture.
3️⃣ Develop tailored interventions – Designing targeted strategies that address both risk factors and workplace challenges.
4️⃣ Implement and monitor progress – Supporting leaders and teams in driving long-term workplace improvements.
The result? Not just a safer workplace, but one that retains top talent, fosters collaboration, and drives sustainable success.
Are You Addressing Both Forms of Workplace Safety?
Workplace safety isn’t just about compliance—it’s about creating an environment where employees feel safe, valued, and empowered.
A workplace without psychosocial safety is stressful.
A workplace without psychological safety is stagnant.
A workplace with both is unstoppable.
A workplace without psychological safety is stagnant.
A workplace with both is unstoppable.
If your organisation is focusing on one but not the other, now is the time to take a proactive approach.
Let’s start the conversation.
Arun had always been the go-to person in his team – the one who stayed late, picked up extra tasks, and kept everything running smoothly. But in recent months, his enthusiasm had faded. He no longer shared ideas in meetings. His emails were short, almost disengaged. His once-reliable presence became unpredictable – some days he was there, some days he wasn’t.
His manager assumed he was just going through a rough patch. No one realised that Arun was struggling under the weight of an unmanageable workload, unclear expectations, and a culture that silently discouraged asking for help.
Then one day, without warning, Arun handed in his resignation. The company had lost a talented, engaged employee – not because he lacked ability, but because the workplace lacked psychosocial safety.
Arun’s story isn’t rare. It’s playing out in offices, hospitals, schools, and job sites across industries. And while workplaces have made great strides in physical safety, they continue to overlook the invisible risks that can be just as damaging.
What Are Psychosocial Hazards?
For decades, workplace safety has focused on tangible dangers – faulty equipment, hazardous materials, physical injuries. But what about the hazards you can’t see?
Psychosocial hazards refer to workplace factors that negatively impact employees’ mental health, stress levels, and overall wellbeing. These risks are harder to detect, but their effects can be just as severe as physical injuries.
The most common hidden hazards include:
- High job demands – Excessive workload, unrealistic expectations, or chronic understaffing.
- Lack of role clarity – Employees are left confused, frustrated, and anxious when their responsibilities are unclear.
- Workplace bullying and harassment – A culture of incivility can slowly erode confidence and mental wellbeing.
- Poor organisational change management – Leadership decisions that create uncertainty or fear can destabilise teams.
- Lack of leadership support – When employees don’t feel valued or heard, they disengage.
When left unaddressed, these risks don’t just harm individuals – they create ripple effects across the entire organisation.
The Business Impact of Ignoring Psychosocial Hazards
The impact of psychosocial risks extends beyond mental health concerns – it affects business performance, talent retention, and overall workplace culture.
- Burnout and Turnover – Employees like Liam don’t just disengage – they leave, taking valuable knowledge and experience with them. The cost of replacing them can be up to 200% of their salary.
- Reduced Productivity and Innovation – When employees feel overwhelmed or unsupported, collaboration suffers, creativity declines, and problem-solving slows.
- Increased WorkCover Claims and Legal Risks – Psychological injury claims have surged 37% since 2017, and returning to work after a psychological injury takes four times longer than a physical one.
- Toxic Work Cultures Take Hold – When psychosocial risks go unchecked, silence replaces trust. Employees avoid speaking up, and morale steadily declines.
Despite these consequences, many organisations still wait until a crisis hits before taking action.
Shifting from Risk Management to Culture Change
The best organisations don’t just react to workplace risks – they actively create environments where employees feel safe, supported, and engaged.
Instead of treating psychosocial risk management as a compliance exercise, they see it as an opportunity to:
✔ Foster a culture of trust and wellbeing
✔ Reduce absenteeism and turnover
✔ Improve engagement and performance
✔ Strengthen employer brand and talent retention
✔ Reduce absenteeism and turnover
✔ Improve engagement and performance
✔ Strengthen employer brand and talent retention
But this doesn’t happen overnight – it requires a strategic, long-term approach.
How Steople Helps Organisations Drive Lasting Change
At Steople, we work with businesses to identify and address hidden workplace hazards before they escalate into bigger problems.
Our approach is grounded in organisational psychology, research, and real-world experience. We don’t just help businesses comply with regulations – we help them embed meaningful change.
Our four-step process ensures organisations can assess, address, and monitor psychosocial risks effectively:
1️⃣ Discover & Engage – Uncover workplace risks through conversations, employee feedback, and organisational insights.
2️⃣ Assess – Identify psychosocial hazards using evidence-based tools and data-driven analysis.
3️⃣ Develop an Action Plan – Implement tailored strategies that address risks at individual, team, and organisational levels.
4️⃣ Implement & Monitor – Support leaders and teams in embedding long-term improvements, ensuring continued success.
When organisations take psychosocial safety seriously, they don’t just prevent burnout – they create high-performing teams and workplaces where people thrive.
Are You Addressing the Workplace Hazards You Can’t See?
Workplace safety isn’t just about avoiding physical accidents anymore – it’s about ensuring people can thrive mentally, emotionally, and professionally.
Ignoring psychosocial hazards doesn’t just put employees at risk – it damages culture, productivity, and business success.
The good news? Organisations that address these risks proactively create stronger teams, more engaged employees, and healthier workplaces.
If your workplace is ready to move beyond compliance and take proactive steps towards a healthier, high-performing workforce, Steople can help.