Managing Psychosocial Risks in the Workplace

Psychosocial risks in the workplace: Practical steps for building workplaces that are peaceful, positive and productive

When most people hear the words “health and safety”, they think of hard hats, high-vis vests, and accident registers. But the truth is, some of the biggest risks in our workplaces today aren’t physical at all. They’re psychological.

Through my own research and insights from my Psychosocial Safety & Wellbeing Index with Kiwi workplaces, I’ve seen a clear pattern: people are under more pressure than ever, and it’s not just the workload that’s taking its toll. It’s the uncertainty, the relationships, the pace of change, and the constant feeling of “never enough.”

WorkSafe New Zealand has pulled together some excellent guidance on managing psychosocial risks, and I want to share the key points in plain language – along with some really practical ways you can protect your people. Because if we can reduce these risks, we don’t just avoid harm, we create workplaces where people can truly thrive.

 

What do we mean by “psychosocial risks”?

It’s a bit of a mouthful, but the idea is simple.

Psychosocial risks are things about the way work is designed, organised, or experienced socially that can harm people’s wellbeing. They’re not about people being “too sensitive” or “not tough enough.” They’re about how the work environment impacts mental and physical health.

Here are a few everyday examples I hear all the time when I run my index:

  • Workload: unrealistic deadlines, or just too much on the plate.
  • Role clarity: not knowing exactly what’s expected, or having conflicting priorities.
  • Support: not feeling backed by a manager or colleagues.
  • Relationships: conflict, bullying, or subtle but damaging behaviours.
  • Change: new systems or restructures rolled out with little communication.
  • Environment: poor lighting, noisy spaces, or feeling isolated working from home.

If these things are left unmanaged, they can lead to stress, anxiety, burnout, depression, and even physical illness. In other words: they’re serious, and they’re costly.

 

Why this matters in New Zealand right now

The numbers tell us this isn’t a small issue. WorkSafe data shows that nearly half of workers in Aotearoa report experiencing stress, anxiety or depression linked to work. Over a third say they’ve been exposed to offensive behaviours like bullying or harassment. And tragically, between 2017 and 2021, almost 200 suicides in New Zealand were identified as work-related.

But behind those statistics are people: team members who go home exhausted, parents with nothing left in the tank for their whānau, leaders who lie awake at night worrying about how to keep everyone afloat.

The good news is: this isn’t out of our hands. There are very practical, proven steps we can take.

 

Key insights from WorkSafe (in plain English)

WorkSafe’s guidance highlights some really important points that every leader should know:

  1. It’s the law. Under the Health and Safety at Work Act (HSWA), health includes mental health. That means you have a duty to manage these risks just as much as physical ones.
  2. Psychosocial hazards commonly fall into three buckets: Work design (things like workload, shift patterns, job control). Social factors (relationships, leadership, bullying, support). Work environment (isolation, traumatic events, poor conditions).
  3. Leaders set the tone. Culture matters. If people feel safe to speak up and know they’ll be listened to, you’re halfway there.
  4. Protective factors buffer the risks. Clear roles, supportive leadership, reasonable workloads, opportunities to grow, and balance between work and home all make a big difference.
  5. Risk management is a cycle. Identify hazards, assess them, put controls in place, and review regularly. Don’t tick a box once and forget it.
  6. Involve your people. Your team knows where the pressure points are. Ask, listen, act.

 

What I’ve seen through my research

When I run my Pressure Test with organisations, three themes come up again and again:

  • Workload and deadlines –  people feel like they’re sprinting a marathon, with no recovery time.
  • Communication – employees say they often don’t understand priorities, changes, or expectations, which leaves them stressed and second-guessing.
  • Support from managers – not because leaders don’t care, but because many haven’t been trained in how to have open, supportive conversations.

And here’s the kicker: when organisations address these three areas, pressure eases almost immediately. Not because the work disappears, but because people feel more in control, more connected, and more supported.

 

Practical ways to manage psychosocial risks

So what can you do in your workplace? Here are some simple, low-cost, high-impact actions:

1. Rethink workload and priorities

  • Regularly check whether deadlines and targets are realistic.
  • Make it safe for people to say “this isn’t doable” without fear of judgment.
  • Adjust priorities — everything can’t be urgent all the time.

2. Improve role clarity

  • Write down clear role descriptions and review them with staff.
  • Be explicit about what success looks like.
  • Clear up reporting lines so no one’s stuck in the middle of conflicting demands.

3. Build supportive leadership

  • Train managers in basic wellbeing and communication skills.
  • Encourage regular check-ins that aren’t just about tasks, but about how people are coping.
  • Recognise effort, not just outcomes. A simple “thank you” goes a long way.

4. Strengthen relationships

  • Call out bullying and poor behaviour immediately. Zero tolerance means zero tolerance.
  • Create opportunities for team connection — even five minutes at the start of a meeting to share something human.
  • Model respectful behaviour from the top.

5. Manage change well

  • Involve people early when changes are coming.
  • Be transparent: explain the what, the why, and the how.
  • Give people time to adapt –  don’t pile change on top of already heavy workloads.

6. Create a safe environment

  • Make sure physical spaces are fit for purpose. Lighting, noise, and temperature all affect wellbeing.
  • For remote teams, ensure regular connection to reduce isolation.
  • Provide support after traumatic events – don’t expect people to “just get on with it.”

7. Keep checking in

  • Use short surveys or pulse checks to see how people are coping.
  • Look for trends in absenteeism, turnover, or complaints.
  • Ask the simple question: “How are we doing, really?”

 

Overcoming the common challenges

Sometimes leaders push back and say: “We don’t have the time or resources for this.” My answer is: can you afford not to? The cost of burnout, turnover, and presenteeism (when people show up but aren’t really functioning) is enormous.

Others say: “We don’t know where to start.” Start small. Pick one area — like workload or communication — and commit to improving it. Then build from there.

And for small businesses especially: remember that psychosocial risk management doesn’t have to mean expensive programmes. Often, it’s about conversations, clarity, and consistency.

 

What “good” looks like

A workplace that manages psychosocial risks well feels different. You notice:

  • People actually smiling, not just surviving.
  • Staff speaking up when something isn’t working — and being heard.
  • Managers who notice when someone’s struggling and lean in with support.
  • Clarity about priorities, and space for people to do their best work.
  • A culture where wellbeing and performance go hand in hand.

 

Managing psychosocial risks isn’t about bubble-wrapping employees or lowering standards. It’s about recognising that people do their best work when they’re supported, respected, and clear about what’s expected of them.

As business leaders in Aotearoa, we have both a legal duty and a moral responsibility to create workplaces where people can thrive. The benefits are huge: healthier teams, stronger performance, and organisations people want to stay in.

So here’s my challenge to you: pick one action from this article and put it into play this week. Have a conversation, check a workload, clarify a role. Small steps create big shifts.

Because when we manage psychosocial risks well, we don’t just prevent harm. We build peaceful, positive, and productive workplaces where people and organisations  can flourish.

Carley Nicholson
[email protected]