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.
Sophie had always been the first one in and the last to leave. She took pride in her work, mentored junior employees, and was seen as a future leader. But over time, things started to change. The long hours, relentless deadlines, and mounting pressure took their toll. She began to feel exhausted all the time, losing confidence in her abilities. The vibrant, engaged leader she once was slowly disappeared.
When Sophie resigned, her manager was shocked. “Why didn’t you say something?” he asked. The truth? She didn’t feel safe enough to speak up. She worried she’d be seen as weak, or worse, replaceable.
Sophie’s story isn’t unique. It’s happening in workplaces across industries – talented, dedicated people reaching breaking points because their workplaces fail to prioritise psychosocial safety.
The Unseen Cost of Psychosocial Risks
Psychosocial risks – such as unmanageable workloads, toxic workplace culture, unclear roles, and lack of leadership support – aren’t just HR issues. They have real, measurable impacts on business performance.
- 37% increase in psychological injury claims since 2017
- 4x longer recovery time for psychological injuries than physical ones
- Millions in lost productivity due to burnout and disengagement
Despite these numbers, many organisations still see psychosocial risk management as compliance-driven rather than a strategy for success. But the reality is: Ignoring these risks is costing businesses more than they realise.
The Cultural Impact of Ignoring Psychosocial Risks
A workplace that ignores psychosocial risks creates a culture of silence. Employees stop asking for help. Teams avoid difficult conversations. Innovation slows because people fear making mistakes.
Left unaddressed, this becomes a self-perpetuating cycle of disengagement, high turnover, and underperformance.
True leadership is about more than just preventing harm – it’s about creating conditions where people can thrive.
Driving Behavioural and Cultural Change
At Steople, we help organisations go beyond compliance to embed psychosocial safety into leadership, culture, and business strategy.
Our four-step process drives both individual behaviour change and organisational transformation:
1️⃣ Discover & Engage – Understanding the unique risks within an organisation through conversations, data, and employee insights.
2️⃣ Assess – Identifying leadership, cultural, and operational factors that contribute to psychosocial risks.
3️⃣ Develop an Action Plan – Implementing evidence-based, tailored interventions that support both individuals and teams.
4️⃣ Implement & Monitor – Embedding long-term improvements and measuring impact over time.
2️⃣ Assess – Identifying leadership, cultural, and operational factors that contribute to psychosocial risks.
3️⃣ Develop an Action Plan – Implementing evidence-based, tailored interventions that support both individuals and teams.
4️⃣ Implement & Monitor – Embedding long-term improvements and measuring impact over time.
When psychosocial safety is part of workplace culture, employees don’t just stay – they thrive.
The Time to Act is Now
Sophie didn’t leave because she didn’t love her work – she left because her workplace made it unsustainable. How many talented people is your organisation unknowingly losing?
The good news? Organisations that take proactive action don’t just prevent burnout – they create high-performing, engaged workplaces that attract and retain top talent.
If your business is ready to move beyond compliance and build a culture of psychosocial safety, Steople can help.