Psychosocial safety is no longer just part of workplace culture conversations– it is essential to creating a workplace where people can do their best work.
At our event on 26 May, The Power of Psychosocial Safety at Work, DCA Deputy Board Chair Chris Lamb was joined by Dianah Brown, Director of Psychosocial Policy at Safe Work Australia, Emily Harvey, Partner at Hall & Wilcox, and Prabha Nandagopal, Founder of Elevate Consulting Partners and SafeSpace@elevate. They discussed why psychosocial safety matters for employee wellbeing, inclusive workplaces, and safer, healthier organisations.
Dianah Brown provided sobering statistics from Safe Work Australia – serious workers’ compensation claims for mental health conditions rose by 161% in the 10 years to 2023–24. These claims usually cost much more than other claims, with a median payout four times higher and time away from work about five times longer. The human impact is significant. This is why organisations need to take psychosocial safety seriously.
What is psychosocial safety?
Psychosocial refers to the connection between what is happening inside us and the people and environments around us. Psychosocial safety is about the workplace conditions that affect our mental health and psychological wellbeing.
Psychosocial hazards at work are situations that can cause psychological harm. They come from the way work is managed or from the work environment. Examples include:
- work that is too demanding and requires too much physical, mental or emotional effort
- treated unfairly as part of a marginalised group
- work that is too easy or unstimulating, leaving people bored, unfulfilled, or undervalued
- not having the support, tools or resources needed to do the job well
- being treated unfairly at work, such as rules being applied differently to different workers
- working in an unpleasant or unsafe environment
- being exposed to traumatic events or material.
Psychosocial hazards do not happen on their own and are not just about individuals. They are often caused by workplace systems – for example, processes that create frustration, unfair decisions, too much work, or unreasonable performance expectations. These issues can lead to conflict, and impact engagement, retention and productivity so it is important to look at psychosocial hazards across the whole organisation.
Psychosocial safety and inclusion
Inclusion plays an important role in preventing psychosocial harm and helps create psychosocial safety. When employees feel respected, supported and able to contribute, they are more likely to speak up, take part and do well at work.
Inclusive leaders listen to workers, improve reporting pathways, make roles clear, and build systems that help identify risks early – especially risks linked to exclusion, unfair treatment or harmful behaviour.
As Prabha Nandagopal from Elevate Consulting Partners and SafeSpace@elevate. explained, “leaders cannot manage risks they cannot see. Many organisations still rely only on engagement surveys or exit interviews, which may not show the full picture. Safe, trauma-informed and anonymous reporting pathways can help leaders better understand what is happening and fix problems before they get worse.”
Inclusive workplaces and psychosocial safety support each other. For organisations, this means building accountability into culture, systems and leadership. A workplace that protects people’s psychological wellbeing is one where inclusion can grow.
DCA members can access the full recording of the event.