Bridging Psychological Safety and Psychosocial Risk Management
Work-related stress, burnout, bullying and poor communication aren’t just interpersonal issues, they’re classified as psychosocial hazards. These are work-related factors that, if left unmanaged, can cause serious psychological harm. Under our work health and safety laws, employers have a legal duty to identify and control these hazards, just as they would physical ones like unsafe machinery or chemicals.
Addressing psychosocial hazards requires system-level action that looks at changing the way work is designed, managed and supported. But just as important is the climate in which this work happens. That’s where psychological safety comes in.
What is psychological safety?
Defined by Harvard professor Amy Edmondson as “a shared belief that the team is safe for interpersonal risk-taking,” psychological safety is about culture. It describes an environment where people feel able to speak up, whether that means asking a question, raising a concern, admitting a mistake or sharing an idea, without fear of humiliation or retaliation
Workplace expert Amy Gallo further emphasises that psychological safety is not about avoiding challenge or discomfort. It’s about enabling honest conversations, the kind that help teams learn, innovate, and tackle difficult problems together.
Psychological safety is not a substitute for managing psychosocial risk. But it plays a critical role in supporting prevention and early intervention, by making it more likely that issues will be identified, raised and addressed before they escalate.
So, what are psychosocial hazards?
Psychosocial hazards are the conditions or demands of a job that may cause harm to psychological health. They’re often built into everyday work, not always obvious but very real in their impact. Common examples include:
- Low job control: little say in how or when work is done.
- High job demands: chronic workload, time pressure or emotional labour.
- Poor support: lack of feedback, supervision or access to resources.
- Unclear roles: conflicting responsibilities or unclear expectations.
- Toxic relationships: bullying, exclusion, harassment or persistent conflict.
- Poorly managed change: restructures or decisions without consultation.
- Exposure to trauma or violence: common in frontline and emergency roles.
These factors don’t just undermine wellbeing, they also increase the likelihood of mental injury. And when they go unaddressed, they can also erode psychological safety.
Your legal duties (and ethical opportunities)
Under the Occupational Health and Safety Act 2004 (Vic) and equivalent legislation across Australia, employers must ensure, so far as is reasonably practicable, that the workplace is safe and without risks to psychological health.
For more, check out our post covering psychosocial hazards here.
Psychological safety in practice
While psychosocial hazard management is largely about systems, psychological safety is about behaviour and leadership. It’s about how people treat each other especially in moments of uncertainty or challenge. Here’s what cultivating psychological safety looks like:
- Leaders go first. Admit mistakes, ask questions, and show that speaking up is safe and valued.
- Clarify expectations. Ensure roles, responsibilities and authority are well understood.
- Act on feedback. Even when the answer is “not yet”, show employees their input matters.
- Enable early support. Provide mechanisms to raise concerns without stigma or retaliation.
- Build team capability. Support interpersonal skills, peer connection, and respectful communication.
Bridging psychological safety and psychosocial hazards
While psychological safety and psychosocial hazards are distinct concepts, they are deeply connected in practice. Psychosocial hazards are the conditions that can cause harm, such as high demands, poor support, or unclear roles. Psychological safety, meanwhile, shapes how people respond to those conditions.
In a psychologically safe environment, employees are more likely to raise concerns early, report risks, or seek help, which allows organisations to identify and address hazards before harm occurs. Without psychological safety, those same hazards can go unspoken and unaddressed, increasing the risk of serious psychological injury. One supports prevention, the other enables it. That’s why managing both (the systems and the culture) is essential for mentally safe workplaces.
Workplace Wizards has a team of legally trained employment consultants who have worked with a variety of businesses to help resolve workplace issues.
Our legally trained employment consultants can help. We’ve supported businesses of all sizes with solutions that address the unique challenges of varying workplace environments—from conflict resolution training and refining policies to reviewing employee contracts. By tailoring our services to your specific needs, we’ll help you maintain a productive, harmonious culture where everyone can thrive. Reach out to learn more about our specialized workplace solutions and gain peace of mind for your organization.
You can call us on 03 9087 6949 or email support@workplacewizards.com.au.
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