
After more than 20 years as a clinical psychologist, I’ve sat with hundreds of people whose lives have been turned upside down by workplace injuries. Many of these stories come through workers’ compensation claims for physical and psychological injuries - and I’ve lost track of the number of court reports I’ve written to show just how deep these wounds can be.
What still strikes me is how many clients come in struggling with work stress, depression, or anxiety and either don’t realise they may have a legitimate workers’ compensation claim or feel too afraid to submit one. By the time they reach me, many are already so depleted and worn down that it takes time to rebuild their strength and start unpacking the layers of complexity behind their situation.
But I want to share something personal with you. Not long ago, I was in a meeting where someone spoke quite aggressively to another person. I noticed it. I felt my stomach drop. I felt for the person it was directed at. But worst of all, I stayed quiet.
Now I am certain everyone in that room noticed this interaction but not one of us said a word! We didn’t ask questions or interject by calling out this bad behaviour. We didn’t try to smooth it over, nothing. We just moved on to the next item.
Later that day, I found myself repeating the same question in my head: Why didn’t I say something? I thought in depth about the impact of this silence, how it came to be and how entrenched it can become. How it only serves to maintain problems and shape our workplace culture in a negative way. How it allows psychosocial hazards to quietly erode our wellbeing.
Once the part of me who values social justice kicked in, I did eventually conclude that next time I see something like this, I am going to call it out! And this is why it’s important to.
What are psychosocial hazards?
They’re the hidden risks in workplaces that affect our mental health. Safe Work Australia and the Victorian OHS Regulations recognise them just as seriously as physical dangers.
Some examples are:
- High job demands - unrealistic workloads or emotionally draining roles
- Low job control - no say in how or when you work
- Poor support - lack of resources, feedback, or guidance
- Bullying, harassment, or discrimination
- Exposure to trauma or workplace violence
- Lack of role clarity or job insecurity
- Poor change management or unfair treatment
These aren’t just “tough days at the office” or “personality clashes” between colleagues; they are risk factors for stress, burnout, and psychological injury. They are legally recognised hazards that employers must manage, just like physical risks.
Why they matter
Here’s some figures:
- Psychological injury claims now make up about 9% of all serious workers’ compensation claims in Australia and rates are climbing every year. They they cost far more and take longer to resolve than physical injuries.
- On average, these claims result in 34+ weeks off work and compensation costs nearly four times higher than physical injury claims.
- Insurers like Allianz report the costs of psychological claims have risen by nearly 80% in the past five years.
Behind those statistics are real people - people struggling to function and living with the bewilderment, the sadness, the anxiety, the anger, the defeat, the helplessness and hopelessness, the strain on relationships, the impact on their families, the financial pressures, the legal stressors, and careers put on hold or ended.
Along with the human cost, psychosocial hazards are a major issue for organisations, insurers, and the economy.
How they affect people and workplaces
Psychosocial hazards can leave people feeling stressed, anxious, depressed, burnt-out, and even cause physical health problems.
For workplaces, the fallout looks like:
- Higher absenteeism and turnover
- Lower morale and productivity
- Toxic workplace cultures that drive good people away
How does focusing on wellbeing help?
Employee wellbeing isn’t just a “nice extra”- it’s a strategic, legal, and financial safeguard against the risks of psychosocial hazards. In fact, prioritising wellbeing is one of the most effective ways to reduce these risks and is directly linked to employer duties under Australian WHS laws and Safe Work Australia’s Code of Practice for managing psychosocial hazards.
Here’s why wellbeing matters:
- Targets risks at the source – reduces high demands, low support, bullying, and unfair treatment
- Supports legal compliance – meets state and national WHS obligations
- Reduces harm and claims – lowers the likelihood and cost of psychological injury claims
- Boosts workplace health – improves attendance, reduces burnout, and cuts compensation premiums
- Builds safe cultures – employees who feel valued and supported are more likely to speak up, raise concerns, and help break toxic cycles
Some organisations champion wellbeing because they genuinely care about their people. Others value the clear business benefits: stronger productivity, lower costs, and higher retention. But for most, it’s about mitigating the risk of psychosocial hazards that exist in every workplace.
Why toxic cultures survive
Silence. When disrespect or bullying goes unchecked, it sends the signal - this is normal here. It isolates the person targeted, gives those behaving badly more power, and builds a culture where speaking up feels unsafe.
Why don’t we speak up?
Even when we want to, it is not easy. People often stay quiet because of:
- Fear of retaliation
- Power differences
- Thinking “someone else will step in”
- Believing “that’s just how it is here”
- Not knowing what to say in the moment
That’s exactly why I froze in that meeting. Even as a psychologist, even knowing the impact - the barriers to speaking up can be very powerful.
Why it’s worth finding our voice
Workplaces only change when someone breaks the silence. Speaking up doesn’t always mean confronting someone publicly - it can be as simple as checking in with a colleague afterwards, naming the behaviour calmly, or raising concerns through the right channels.
Each small act says: respect matters here. That’s how cultures shift.
Take away
Psychosocial hazards are every bit as real as unsafe machinery or trip hazards. They don’t just harm individuals - they drain entire organisations.
If you want to work through any work-related issues, don't wait too long before seeking assistance. Get on top of it before it causes more issues. Book online now for a confidential discussion.
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