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Mental Health in the Workplace: How Medium-Sized Business Leaders Can Manage Psychosocial Hazards for a Healthier Team
Introduction
October is Mental Health Month, so I have been reflecting on my own wellbeing practices—what I call my “Big 3 Essentials”: running, getting eight hours of sleep, and staying hydrated (though I admit cutting back on coffee can be tough!). These are my go-to habits to stay balanced, but they’ve also sparked a bigger question: How are we, as leaders, supporting our teams’ mental health? We all have a role to play, not only in our own self-care but also in shaping the environments where our teams can thrive.
This year’s Mental Health Month theme in New South Wales, “We All Have a Role to Play,” perfectly encapsulates the responsibility we have in the workplace. Leaders are not just managers of performance; we are also custodians of mental wellbeing. When I posted a short video on LinkedIn at the end of last month, I didn’t expect it to be viewed over 5,500 times and receive around 30,000 impressions. It does go to show though, a great proportion of the business community are either touched directly by mental health or want to act on it in their workplace as leaders. And kudos to you if you are one of those leaders.
This blog dives deeper into the topic of psychosocial hazards—those workplace stressors that can harm both mental and physical health—and offers practical steps for leaders to mitigate these risks. Many of my personal insights were developed over the full timeline of my career, but on reflection, the majority were a result of a negative experience, or even the loss of a colleague to suicide. So deliberately, I am drawing from a broader set of insights, including Safe Work Australia’s guidelines and other resources which focus on a planned and practice approach which explore how you can foster a mentally healthy workplace that benefits everyone.
Understanding Psychosocial Hazards
Psychosocial hazards may sound like jargon, but they’re a reality in many workplaces. Take the construction industry, where 190 construction workers die by suicide every year in Australia. In fact, concerning rates of suicide are prevalent in farmers, ambulance and fire services, veterinarians, entertainers, artists and the transport industry – as well as in female doctors and male nurses. [1]
Psychosocial hazards are factors related to how work is organized, managed, and carried out, or the social interactions at work, that can cause psychological harm. This harm could manifest as stress, anxiety, depression, or even physical illness. Examples of psychosocial hazards include excessive workloads, lack of role clarity, poor management support, and toxic workplace behaviours such as bullying.
The impact of these hazards can be profound. According to Safe Work Australia, serious claims for mental health conditions in 2021-22 led to over 584,000 working weeks lost. On average, psychological injuries have longer recovery times, higher costs, and require more time off work compared to physical injuries. As leaders, understanding these risks is the first step toward preventing them. [2]
Leadership’s Role in Managing Psychosocial Hazards
Psychosocial hazards are preventable but managing them requires proactive leadership. Creating a mentally healthy workplace goes beyond offering wellness programs or flexible work arrangements—though these are important. It involves embedding mental health awareness into the daily operations of your business. It can also mean reflecting on our own standards as leaders right down to those favourite sayings we use with our teams.
The “Model Code of Practice” published by Safe Work Australia offers a framework for managing psychosocial risks under the Work Health and Safety (WHS) Act. This framework highlights that employers have a duty to protect workers from both physical and psychological harm by identifying, assessing, controlling, and regularly reviewing risks. [3]
Step 1: Identifying Psychosocial Hazards
The first step in managing psychosocial hazards is identifying what they are and where they exist in your workplace. Some common examples include:
- High job demands: When employees face excessive workloads or unrelenting time pressures, they can quickly become overwhelmed.
- Low job control: Workers who have little autonomy over how they perform their tasks often feel powerless, which can lead to stress.
- Poor support: When employees do not receive adequate guidance, training, or emotional support from supervisors or colleagues, they may feel isolated and undervalued.
To help with this, the “People at Work” tool is a fantastic resource. It’s a validated psychosocial risk assessment tool designed to help organizations gather data from employees about the risks they face. By using such tools, leaders can gain a clearer understanding of where the issues lie.[4]
Step 2: Assessing the Risks
Once hazards are identified, the next step is to assess the risks they pose. Not all psychosocial hazards have the same impact. The key here is to evaluate how long employees are exposed to these hazards, how frequently they occur, and how severe the consequences could be.
For example, a short burst of stress during a busy project might be manageable for most employees. However, if that stress is constant and there’s no support to help manage it, the risk of burnout becomes much higher. Prolonged exposure to high job demands or unresolved interpersonal conflict can result in psychological injuries that are far more difficult to recover from than physical injuries.
Assessing risks involves understanding the interplay between different hazards. For instance, an employee might be dealing with high job demands while also experiencing low levels of support from their manager. Together, these factors significantly increase the risk of harm.
Step 3: Implementing Control Measures
Once risks are assessed, it’s time to act. The goal here is to either eliminate the hazard or, if that’s not possible, to minimize the risks as much as reasonably practicable. Safe Work Australia’s Model Code of Practice suggests several control measures that can be tailored to the unique needs of your workplace:
- Job Design: Ensure that job demands are balanced and that employees have sufficient time to complete their tasks. This might mean spreading out workloads more evenly, allowing employees to take proper breaks, or rotating them through different types of tasks to prevent burnout.
- Increase Autonomy: Empower employees by giving them more control over how they work. This could involve allowing flexibility in work hours, enabling workers to have a say in task prioritization, or involving them in decisions that affect their roles. Greater autonomy often leads to increased job satisfaction and reduces stress.
- Enhance Support Systems: Strong support systems are vital for preventing psychosocial risks. Regular check-ins with employees, clear communication about expectations, and creating an open-door policy for raising concerns are all ways to build supportive environments. Providing adequate training and resources to complete tasks effectively also falls under this category.
- Foster Positive Work Relationships: Interpersonal relationships at work can be a source of stress or a buffer against it. Encouraging teamwork, setting up regular team meetings, and fostering a culture of respect can go a long way in minimizing the risks associated with poor workplace interactions.
Step 4: Review and Maintain Control Measures
After implementing control measures, it’s important to recognize that this is not a one-time fix. Psychosocial risks can evolve over time, especially as workplaces undergo changes such as organizational restructuring, new technology adoption, or shifts in team dynamics. Therefore, regularly reviewing your control measures is essential to ensure they remain effective.
One of the most effective ways to maintain control measures is through continuous consultation with your team. Regular check-ins, feedback loops, and anonymous surveys allow employees to voice their concerns or highlight any new risks that may have emerged. Leaders should also stay vigilant for any signs of stress or burnout within their teams, such as increased absenteeism, reduced productivity, or changes in behaviour.
Additionally, leaders should reassess control measures when significant changes occur within the organization, such as new projects, staffing changes, or shifts in workload. The goal is to ensure that the control measures still align with the current risks and that any new risks are promptly addressed.
It’s also beneficial to keep records of your risk management process, including the outcomes of consultations, the hazards identified, and the measures implemented. These records not only help in tracking progress but also demonstrate your commitment to creating a safe and supportive work environment. Work health and safety inspectors may request this documentation if issues arise, so having it readily available can streamline the process.
What’s Next? Fostering a Culture of Mental Health
Creating a mentally healthy workplace is not about implementing a few isolated measures; it’s about fostering a culture where mental health is prioritized, discussed openly, and embedded into everyday operations. Here are some key steps to take next:
- Educate Your Team: Mental health awareness should be an ongoing effort. Provide regular training to help employees recognize psychosocial hazards and understand the importance of mental health. Include leadership training focused on managing psychosocial risks, as leaders play a critical role in maintaining a healthy work environment.
- Encourage Open Dialogue: Promote a culture of openness where employees feel comfortable discussing mental health issues. This can be achieved by normalizing conversations around mental wellbeing and ensuring that employees know where to seek support when they need it. Regular team meetings and one-on-one check-ins provide opportunities for employees to voice concerns in a safe and supportive environment.
- Leverage Tools and Resources: Utilize tools like the “People at Work” tool to regularly assess psychosocial risks within your organization. These tools provide valuable insights into the health of your workplace and can guide future actions to minimize risks.
- Lead by Example: As a leader, your actions set the tone for your team. Model healthy behaviours by prioritizing your own mental wellbeing, taking breaks, setting boundaries, and encouraging your team to do the same. When leaders demonstrate a commitment to mental health, it creates a ripple effect throughout the organization.
- Celebrate Progress: Finally, celebrate the steps you’re taking toward fostering a mentally healthy workplace. Recognize efforts within the team that contribute to a positive work environment, and continuously highlight the importance of mental health in your communications. These celebrations reinforce the message that mental health is a priority for everyone.
Real-World Example: Bell Canada's "Bell Let's Talk" Initiative
An illustrative example of effective leadership in workplace mental health is Bell Canada’s “Bell Let’s Talk” initiative, launched in 2010. As the largest corporate mental health program in Canada, it focuses on four key pillars: fighting the stigma surrounding mental health, improving access to care, supporting research, and leading by example in workplace mental health. Key elements include an enhanced return-to-work (RTW) program, increased accessibility to resources and tools, mandatory training for leaders, and cultivating a supportive organizational culture.
Since the initiative’s inception, Bell has tracked over 90 key performance indicators using a mental health scorecard. This comprehensive approach monitors factors such as short-term and long-term disability claims, utilization of mental health benefits and programs, and employee engagement levels. The results have been significant:
- Increased Engagement: Usage of their Employee and Family Assistance Program (EFAP) reached 36%, more than double the industry and national norms, indicating a 190% increase compared to 2010.
- Reduced Disability Claims: There was a 20% decrease in short-term disability claims related to mental health.
- Decreased Relapse Rates: The enhanced RTW program contributed to over a 50% reduction in mental health–related short-term disability relapse and recurrence from 2010 baseline levels.

Bernard Le Duc, Executive Vice President and Chief Human Resources Officer at Bell, emphasized the importance of a holistic approach: “Supporting the mental health and safety of our people is equally important to supporting their physical health and safety.” Bell’s commitment demonstrates how sustained, data-driven efforts and leadership engagement can lead to meaningful improvements in workplace mental health. Their ongoing use of the mental health scorecard continues to guide program evolution and effectiveness, fostering progressive discussions and reinforcing the value of mental health initiatives within the company.[5]
Conclusion: Leadership’s Role in Creating a Mentally Healthy Workplace
As leaders, we have a responsibility to go beyond productivity metrics and KPIs. We are in a unique position to shape environments where our teams can thrive both mentally and physically. Addressing psychosocial hazards and promoting mental wellbeing isn’t just about meeting regulatory requirements; it’s about creating a workplace where people feel valued, supported, and empowered.
Mental Health Month is a perfect time to reflect on the steps we’ve taken and consider how we can continue to improve. Whether through refining job designs, offering greater support, or simply fostering open conversations about mental health, every action counts. Let’s take this opportunity to commit to creating safer, healthier workplaces—for ourselves, our teams, and our organizations.
What You Can Do Right Now
Take the next step in prioritizing mental health in your workplace. Explore tools like “People at Work” and familiarize yourself with the Model Code of Practice to guide your strategies. Share your experiences, learn from your teams, and continue fostering a workplace where mental health is not just an initiative, but a core value.
Together, we can ensure that mental wellbeing is a lasting priority in the workplace—not just for Mental Health Month, but throughout the year, and the rest of our lives