On a recent business trip to Sydney,  one topic emerged with striking consistency - the new psychosocial legislation.  For the CPOs we were talking to, it wasn't just a matter of legal compliance; the conversations revealed a deep-seated concern for the well-being of their workforces, which reflects an increasingly significant shift towards a more holistic approach to workplace safety. Interestingly, this wasn't something we’d heard of at all in our conversations with CPOs in New Zealand. Not yet, at least!
 
After day one of our trip (and three separate conversations where CPOs asked us “what are you guys doing about Psychosocial?”), we realised that our knowledge needed sharpening up, and that there was a clear need being articulated by leaders in the Sydney business community for something to help them address their challenges.
 
Inspired by these discussions, we wanted to share our insights on psychosocial legislation in Australia, and offer insights to New Zealand businesses who may proactively choose to adopt similar frameworks for their employees here.  From what we’ve seen and heard, it feels like it’s only a matter of time before this kind of legislation becomes more commonplace.

‍

Understanding psychosocial legislation



Australia's move to introduce psychosocial legislation marked a significant step towards addressing non-physical workplace hazards. These include things like work-related stress, bullying, harassment, and violence, which can affect employees' mental health and wellbeing. The legislation looks to safeguard employees against these psychosocial risks, and drives businesses to adopt a more comprehensive approach to workplace safety that encompasses mental as well as physical health.



The core intent of this legislative framework is not only to protect employees but also to foster a positive workplace culture that can contribute to better productivity, lower absenteeism, and a more engaged workforce. For employers, it means going beyond the traditional focus on physical hazards and incorporating mental wellbeing into their health and safety policies.

‍
This is interesting: we’ve seen many of organisations in New Zealand look to incorporate something along these lines in their own policies without a being compelled to by underlying legal framework. It’s well-intentioned and is to be applauded, but it’s worth mentioning that without a common framework, we run the risk of varying levels of accountability and  consistency of care across the workforce as a whole. It may end up being a point of difference for employees looking to choose an organisation to work for, but could inadvertently also create a two-tier system where some employees are less protected than others.



‍

Implementing changes in the working environment



Adapting to the new psychosocial legislation involves a series of tangible changes within the workplace. These go far beyond just updating a policy and putting a 30-minute eLearning course together for people managers (please, don't do that!). Here are some steps that we think businesses could take now to move towards compliance with the legislation.... and promote a healthier work environment:

‍

1. Conducting Psychosocial Risk Assessments -
The first step is to identify potential psychosocial hazards that could harm employees' mental health. This involves assessing factors such as workload, work patterns, social support, control over work, and exposure to workplace violence or harassment.  Pressures outside of work such as family matters, financial concerns, personal safety, carer responsibilities (and so much more), can clearly also have an impact on employees’ mental health and their ability to perform their role safely and effectively.
2. Developing and Implementing Intervention Strategies -
Once risks are identified, businesses must develop strategies to mitigate them. This could include introducing flexible work arrangements, ensuring fair distribution of work, providing access to mental health support, and establishing clear policies against bullying and harassment. The strategies could vary based on location, time of the year, exposure to specific client groups. The list goes on.

3. Fostering Open Communication
- Creating channels for open communication is crucial. Employees should feel safe to express concerns about their mental well-being or report incidents without fear of retaliation. Regular check-ins and feedback sessions can help in identifying issues early and addressing them proactively. Additionally, it’s worth encouraging a broader organisation-wide conversation about the importance of surfacing and discussing psychosocial risks, and the criticality of taking ownership of actions to mitigate or eliminate these risks.
4. Learning and Awareness Programmes - Educating employees and management about psychosocial risks and promoting mental health awareness is key. Learning can equip them with the skills to recognise signs of stress, respond to incidents effectively, and support colleagues experiencing mental health challenges. This goes WAY beyond an elearning module or a couple of hours in a classroom. When we think about how difficult it can be to identify signs of stress, or to predict possible outcomes to future situations, we realise that the skillset and mindset that we’re looking to develop here is actually quite hard.
5. Monitoring and Reviewing Policies
- Compliance is not a one-time effort. Businesses must regularly review and update their policies, taking into account changes in the workplace and feedback from employees. Continuous monitoring helps in assessing the effectiveness of intervention strategies and making necessary adjustments. Ideally, monitoring should be as open and transparent as possible, and fed back into learning and awareness programmes, and the organisation-wide conversation. This should become a continuous and ever-evolving new normal.^‍
   ‍

Perspectives on the Legislation



From employers



Employers we’ve spoken to generally view the legislation as a positive step towards creating a healthier workplace. It prompts them to address issues that may have been overlooked but are crucial for the overall well-being and productivity of their employees. However, some express concerns about the costs and resources required for implementation, particularly small businesses. We also heard there was a sense of anxiety or fear about large penalites being applied in the event of a breach of the legislation. Some of the penalties quoted are eye-watering, and should be more than enough for business leaders to take the matter seriously and invest appropriately – in terms of time, effort, and money to get this right.

‍

"...all jobs and all people can be impacted by stress on the job" - UK Firefighter

‍
Under Australian psychosocial legislation, the fines for non-compliance with work health and safety (WHS) laws can be significant. The changes to WHS laws include:
‍

• For a body corporate or the Commonwealth, the maximum fine is $15 million AUD (previously $3 million).
• For a person conducting a business or undertaking (PCBU) or an officer, the maximum fine is $3 million AUD (previously $600,000).
• For any other person, the maximum fine is $1.5 million AUD (previously $300,000)
  ‍

It's worth mentioning that some roles have traditionally been seen as more stressful or pressured than others, although the underlying premise here is that an employee’s experience of stress is relative.
I recall a conversation I had with a firefighter in the UK a number of years ago when I asked him how he dealt with the stress of running in to a building on fire, or attending series road traffic accidents, and he was quick to play it down. He said that if you work on a check out in a supermarket, you can also feel massive stress if the queue is very long , the customers are impatient and there are no other checkouts open. 
The value in here is for employers to recognise that all jobs and all employees can be impacted by psychosocial factors, and that this legislation isn’t reserved for a handful of select roles.

From employees



A completely unscientific sampling of people we’d consider to be “employees” rather than “employers”  showed us that they were universally welcoming of the legislation as it acknowledges the importance of mental health in the workplace, and is designed to make their roles more manageable, less stressful, and more tenable. People talked about how it would give them a sense of security, knowing that their employers are legally obliged to provide a safe and supportive working environment. We also heard a desire from employees in New Zealand for legislation like that currently in place for their Australian counterparts. One person even described the legislation as “cool”, which could be the first time I’ve ever heard any legal framework described so positively!!
 
‍

Insights for New Zealand businesses



While New Zealand has its own health and safety regulations (and some helpful guidelines provided by Worksafe), the Australian psychosocial legislation (and this robust code of practice) serves as a valuable precedent. By taking proactive steps to address psychosocial risks, New Zealand businesses can not only enhance the wellbeing of their workforce but also stay ahead of potential legislative changes in the future. Adopting such measures can help avoid complex challenges down the line, ensuring a resilient and thriving workplace.

The introduction of psychosocial legislation in Australia highlights the growing recognition of mental health as a critical component of workplace safety. By learning from the Australian experience, businesses in both Australia and New Zealand can make meaningful changes to their working environments, creating a culture of safety and well-being that benefits everyone involved.



‍

How we think we can help

Our deep culture diagnostic approach means that we are uniquely positioned to support organisations in understanding and navigating the complexities of psychosocial risk management. By leveraging our comprehensive analysis tools and methodologies, we can help organisations to unearth the underlying psychosocial risk factors or trigger points that may otherwise go unnoticed within an organisation’s culture. We support in two ways:

1. Identifying Psychosocial Risk Factors

By synthesising data from a number of diverse sources, we can pinpoint specific psychosocial risk factors that affect employee wellbeing and performance. These risks might include, but are not limited to

• Workplace Stressors: High workload, tight deadlines, and ambiguous job roles
• Interpersonal Issues: Bullying, harassment, lack of support from colleagues or supervisors.
• Organisational Culture: Poor communication, lack of recognition, and inadequate conflict resolution mechanisms.
• Work-Life Balance: Inflexible work schedules and insufficient downtime.

  ‍

2. Providing Organisations with Confidence and Certainty

Once we’ve gained a detailed understanding of these risk factors, we can then work with organisations to help:


• Prioritise Interventions: Based on the severity and impact of identified risks, we look to find things will have the most significant positive effect on the workplace environment.
• Develop Targeted Strategies: Tailoring interventions to address the specific challenges and needs of different teams or departments within the organisation.
• Implement Change Effectively: Advising on the most effective methods to implement changes, ensuring they are embraced by the workforce and embedded into the organisational culture.
• Measure Impact: Establishing metrics and feedback mechanisms to monitor the effectiveness of interventions and adjust strategies as necessary.



Give us a shout. We'd love to help keep your people safe, and support your move towards creating a better culture of wellbeing and workplace safety.

‍