Psychological Safety and Psychosocial Hazards

Fostering Psychological Safety in Mental Health Workplaces

Psychological safety is essential in all workplaces, regardless of role or discipline. It refers to an environment where individuals feel safe to express ideas, speak up about concerns, ask questions, and take interpersonal risks, without fear of humiliation, retaliation, or damage to their reputation or career.

Psychological safety is especially important in mental health and alcohol and other drugs organisations, where trust, collaboration, and a sense of safety are vital not just for staff but also for those receiving care and support. [1]

 

What is Psychological Safety?

Psychological safety is the collective understanding that people can:

  • Speak openly and honestly
  • Question decisions and express concerns
  • Share ideas without fear of judgement or retaliation

This creates a healthy workplace culture where everyone feels valued, respected, and empowered to contribute. In mental health and alcohol and other drugs settings, fostering psychological safety is essential for effective service delivery, enabling all individuals to thrive. [1]

How to Create Psychological Safety

Psychological safety is a co-created effort between workers, leaders, and organisations. Leadership plays a crucial role in setting the tone by encouraging open communication and seeing mistakes as opportunities for learning. [2]

Workers also contribute by engaging openly, supporting colleagues, and fostering reflective practice.

Key actions to promote psychological safety include:

For Leaders and Organisations:

  • Encourage discussions about tough issues and create space for honest conversations.
  • Implement anonymous feedback channels.
  • Recognise and celebrate team members’ contributions.
  • Ensure realistic workloads and clear job descriptions.
  • Offer regular wellbeing check-ins.
  • Foster leadership development with a focus on emotional intelligence and stress management.[2]

For Workers:

  • Focus on solution-oriented approaches to problem-solving.
  • Support colleagues and actively engage in reflective practice.
  • Share struggles openly, which can encourage others to do the same.
  • Seek regular support from supervisors to ensure clear guidance and boundaries.

Psychological Safety

Considerations for Workers with Lived Experience

For workers with lived experience, psychological safety is even more critical. Additional considerations include:

  • Discussing preferences and needs with supervisors if they become unwell in the workplace.
  • Reasonable adjustments to prevent negative mental health impacts and accommodate unique needs.
  • Awareness of both spoken and unspoken lived experience within the workplace.
  • Awareness of the impacts of stigma and discrimination.

By fostering psychological safety, organisations can create a supportive and inclusive environment, empowering workers to provide high-quality care and improve service outcomes.

Incorporating these elements into the broader strategy of managing psychosocial hazards will not only protect workers’ mental wellbeing but also enhance the overall culture and productivity of the organisation.

To read more about fostering psychological safety in workplaces please visit Mental Health Coordinating Council dedicated webpage which includes guiding resources for individuals and organisations. [3]

Psychosocial Hazards in the Workplace

Organisations are legally required to ensure workplace health and safety, which includes reducing psychosocial hazards. According to the Code of Practice on Psychosocial Hazards in the Workplace, psychosocial hazards refer to aspects of work design, job roles, and workplace interactions that can negatively affect mental health and emotional wellbeing. These hazards can manifest in various ways, such as stress, burnout, anxiety, or exclusion making it harder for workers to cope and function effectively. [4]

What Are Psychosocial Hazards?

Psychosocial hazards can arise from multiple factors, including:

  • The design or management of work (e.g., excessive workloads, unclear roles)
  • The working environment (e.g., poor support or lack of autonomy)
  • Physical hazards such as dangerous machinery or workplace violence
  • Workplace interactions, such as bullying, harassment, racism, sanism, ableism, disableism, misgendering, microaggressions or other harmful behaviours.

Data from Key Work Health and Safety Statistics Australia 2024 shows an increase in psychosocial injuries at work, highlighting the critical importance of addressing these hazards. Psychosocial hazards not only harm individual employees but also lead to decreased productivity and negatively impact workplace culture. [5]

Psychosocial Hazards in the Lived Experience (Peer) Workforce

In addition to psychosocial risks, the frontline Lived Experience (Peer) workers can also be exposed to physical hazards, just like other workforces. These risks can include navigating health facilities, handling equipment or potential workplace violence.

In March 2023, the Psychosocial Hazards in the Lived Experience (Peer) Workforce Project Report was released, highlighting the unique workplace hazards faced by Mental Health and Suicidality Lived Experience workers.[6] The report identified systemic issues in the public and community health systems and provided solutions designed by Lived Experience workers themselves.

Key psychosocial hazards for Lived Experience workers include:

  • Moral Injury: Facing ethical dilemmas or conflict between personal values and organisational practices.
  • Lack of Role Clarity: Unclear expectations or responsibilities.
  • Vicarious Trauma: Experiencing secondary trauma through exposure to others’ distress.
  • Exclusion and Unfair Treatment: Including barriers to inclusion, controlling behaviours, and stigma.

Nearly 70% of surveyed participants reported traumatic experiences in the workplace related to their lived experience.[6]

Recommendations for Managing Psychosocial Hazards in Lived Experience Workforces

Proactively addressing these hazards is crucial for improving the working conditions of Lived Experience workers and creating a more supportive workplace for all. Here are some:

  1. Conduct a Lived Experience Worker Resourcing Assessment
    Ensure adequate resources, career development, and training opportunities are provided to Lived Experience workers. This will support their professional growth and reduce work-related stress.
  2. Implement Lived Experience-Based Supervisory Structures
    Lived Experience workers should have access to Peer Supervision by qualified and experienced Lived Experience peers. This ensures their specific needs are understood and supported.
  3. Provide Mandatory Training for All Staff
    Training should educate all employees on the roles and importance of Lived Experience Workers, as well as how to foster a supportive environment for them.
  4. Ongoing Training and Development
    Continuous professional development should be available to Lived Experience workers, ensuring they have the necessary skills to thrive in their roles.
  5. Ensure Representation at All Levels of the Organisation
    Recruitment practices should be audited to ensure that Lived Experience workers have equal opportunities to move into leadership positions. This should be supported by professional development plans to identify areas of skill development required for career progression.
  6. Monitor Workplace Culture
    Regularly monitor workplace culture to ensure Lived Experience workers are supported and experience high levels of job satisfaction and inclusion.
  7. Apply Workplace Rules Fairly
    Policies should be applied fairly and consistently across all departments, ensuring equity and justice within the workforce.
  8. Union Representation
    All employees have the right to union representation. Raising awareness of this option can help ensure that Lived Experience workers are informed of their rights, supported in addressing workplace concerns, and protected from psychosocial hazards.
  9. Provide Clear Reporting Processes
    Ensure psychosocial hazards are reported promptly and addressed effectively. Organisations should establish accessible and transparent reporting systems, ensuring timely investigation and resolution. This approach builds trust, demonstrates accountability, and supports workers in raising concerns without fear of reprisal.
  10. Make Reasonable Adjustments
    Align workplace practices with the Disability Discrimination Act 1992 (Cth) and the Equal Opportunity Act 1984 to accommodate workers’ needs. Reasonable adjustments may include modifying job roles, workspaces, or schedules to support employees experiencing psychosocial hazards.

Creating Safer, Supportive Workplaces

Addressing psychosocial hazards involves more than policies—it’s about fostering environments where workers feel emotionally and psychologically safe. Creating safety goes beyond job design or workload management, it also means building cultures that welcome lived experience, challenge stigma, and ensure all voices are respected. Ensuring trust among colleagues and leadership is essential to maintaining safety, especially for Lived Experience (Peer) workers, who may face unique challenges related to their roles and identities.

The sections ahead explore strategies for cultivating trust, growing allyship, reporting hazards, and creating psychological safety—each aimed at empowering workers and improving organisational culture.

 

Balancing Responsibility and Decision-Making in Job Design

Job design plays a crucial role in creating psychologically safe workplaces. Roles with unclear responsibilities and skill requirements, inconsistent expectations and limited autonomy can increase stress and contribute to psychosocial hazards. This is especially true when workers are held accountable without being given the authority or resources to make decisions, or when they are expected to take on emotionally demanding tasks without adequate preparation or support.[7]

Allyship in the Workplace

Research shows having just one empathetic ally can significantly improve employees’ experiences at work, helping them within challenging environments with better outcomes. [8]

Fostering allyship across the workplace strengthens psychosocial safety. Growing allyship involves:

  • Supporting colleagues emotionally
  • Advocating for their inclusion in decision-making
  • Challenging stigma and bias when it arises

Reporting a Hazard

Encourage early reporting of psychosocial hazards to ensure workers receive support before issues escalate, thereby avoiding harm and injury.

Encouraging early reporting of psychosocial hazards can assist in ensuring workers receive support before issues escalate, thereby avoiding harm and injury.

More information about psychosocial hazards is available through the the Department of Energy, Mines, Industry, Regulation and Safety site here. [9]

Supporting Workers After Sick Leave or Compensation Claims

Clear and supportive processes should be established to help workers return to work after taking sick leave or making a workers’ compensation claim. This should include making reasonable adjustments to accommodate their needs in line with the Disability Discrimination Act.

[10]

Act Soon – Act Fast

It is vital to Act Soon – Act Fast when workers display signs of distress. Acting early helps support distress from worsening, identifies any psychosocial hazards which might exist and supports workers more effectively

[11]
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