Australian businesses must address hazards as workplace stress claims outstrip physical injuries
This article was produced in partnership with Black Dog Institute
Dr Aimee Gayed is a Postdoctoral Research Fellow with the Workplace Mental Health Research Team at the Black Dog Institute. The primary focus of her research is developing and evaluating tailored training for managers to help address psychosocial risk factors and promote more mentally healthy workplaces.
The numbers tell the story – according to Safe Work Australia, the median time lost to work-related psychological injuries in 2021-22 was more than four times that of all physical injuries and illnesses.
While awareness among Australian businesses of workplace mental health is growing, the challenge now lies in what organisations can do to both protect and promote mental health at work.
"Research shows that there are specific workplace factors that can create poor mental health outcomes, otherwise known as psychosocial hazards," explained Dr Aimee Gayed, Postdoctoral Research Fellow with the workplace mental health research team at the Black Dog Institute. These hazards represent factors in the design or management of work that increase the risk of work-related stress and can lead to psychological harm.
The concept extends far beyond individual resilience or personal coping strategies. Gayed emphasises that psychosocial risk refers to the likelihood of these hazards causing harm.
Mental illness has become the leading cause of sickness absence and long-term work incapacity in high-income countries such as Australia. The workplace connection is undeniable: we spend a third of our adult lives at work, making mental health and wellbeing inextricably linked to our professional environments.
"Common hazards can include factors such as excessive workload, low job control, workplace bullying and harassment, lack of role clarity, and low support," Gayed noted. These hazards can manifest across any workplace, though different industries face varying levels of exposure to specific risks.
Yet there's reason for optimism. Gayed points out that psychosocial risk is modifiable, meaning organisations can remove or minimise their impacts through appropriate evidence-based interventions.
The regulatory landscape has shifted dramatically. Organisations now face legal obligations to mitigate risks to psychosocial harm, but compliance alone misses the broader opportunity at hand.
"More than a legal requirement, organisations have a social and moral responsibility to protect and promote positive mental health at work," Gayed said. The moral imperative is clear: every employee deserves a safe workplace, regardless of whether that safety concerns physical or psychological wellbeing.
When organisations leave psychosocial hazards unchecked, they create poor mental health outcomes for employees that ripple through productivity, engagement, and retention metrics.
"On an individual level, unsafe workplaces can reduce employee wellbeing and cause harm," Gayed explained. The individual suffering translates into significant social and economic costs that ultimately impacts the entire business ecosystem.
Black Dog Institute recently updated its Framework for Mentally Healthy Workplaces, designed as a practical roadmap for organisations across any industry and size. The framework recognises that workplace mental health requires a whole-of-organisation approach, operating across four distinct levels.
"In our updated framework, we look at this across four levels of a workplace – Systems and Policy, Operation and Team, Job, and Individual," Gayed said. This comprehensive approach acknowledges that sustainable change cannot emerge from piecemeal initiatives or individual-focused programs alone.
The systems and policy level addresses the foundational arrangements within an organisation, while operations and team initiatives optimise interpersonal and environmental factors. Job-level interventions alter the design and delivery of work tasks, and individual programs help modify employee responses to workplace conditions.
This multi-layered approach reflects the complexity of workplace mental health challenges, recognising that effective solutions must address structural, environmental, and personal factors simultaneously.
People managers occupy a particularly influential position in shaping workplace mental health outcomes. Their daily interactions, decision-making authority, and ability to observe team dynamics put them in a unique position to identify and manage psychological hazards.
"We know that people managers and leaders play a pivotal role in fostering the wellbeing of their teams through the behaviours they model, and their ability to observe and act when they notice or are informed that a member of their team is having a difficult time," Gayed explained.
Research demonstrates a strong relationship between higher levels of manager support and lower levels of psychological distress in employees. This correlation suggests that investing in manager capabilities can yield measurable returns in employee wellbeing.
Effective manager practices include holding regular catch-ups with staff, enabling quicker identification and response to psychosocial hazards. Gayed recommends that managers adopt approachable, non-stigmatising management styles that encourage open communication about workplace concerns.
"Managers should also provide adequate resources for staff to carry out their roles effectively and manage workplace conflict or issues quickly and fairly," she added. These practical steps can significantly reduce the accumulation of workplace stressors that contribute to psychological harm.
The shift from awareness to action requires organisations to move beyond good intentions toward evidence-based strategies. Black Dog Institute's research has identified specific interventions that demonstrably improve workplace mental health outcomes.
"Strategies can include providing skill-based mental health training to upskill managers in supporting their staff and addressing psychosocial hazards," Gayed said. When managers develop recommended skills and confidence to apply them, organisations see increased application of strategies to support staff wellbeing.
The Institute's 'Protecting and Promoting Mental Health at Work' program exemplifies this evidence-based approach. The interactive training workshop provides senior and team leaders with practical strategies to prevent mental health issues from developing in the workplace, helping participants identify and mitigate risks while learning to promote good mental health.
For employees experiencing mental health difficulties, supporting early help-seeking becomes essential. "Staying at work where possible and supporting return-to-work is key" for workers on sickness absence for mental health reasons, Gayed noted.
Tasmanian electricity retailer Aurora Energy provides compelling evidence of what comprehensive workplace mental health training can achieve. Following implementation of Black Dog Institute's 'Workplace Mental Health for Employees and Leaders' e-learning program, the organisation recorded measurable improvements across multiple wellbeing metrics.
"We already had Mental Health First Aid Officers who could act as a last port-of-call, but we wanted to take a more thorough and preventative approach to supporting the mental health and wellbeing of the whole organisation," said Nicole Hunt, chief people officer at Aurora Energy.
Aurora Energy's approach demonstrates the value of systematic implementation over ad hoc initiatives. The e-learning platform enabled real-time tracking of employee participation and engagement, providing administrators with actionable data to optimise program delivery.
"We could track who had completed the training and gather feedback on the content. This real-time data allowed us to make adjustments and follow up with employees who hadn't completed the training yet. It also gave us the opportunity to report on the program's success, which was especially important for us as a Government Business Enterprise," Hunt said.
The results speak for themselves. Aurora Energy's quarterly engagement surveys showed significant improvements in employee wellbeing scores following the training rollout.
"While it's worth noting workplace mental health training isn't the only initiative we conducted during this quarter, we did see some really encouraging scores that we are confident are partly attributed to training. For example, in January 2025 our wellbeing score increased from 61% to 70% favourable, reflecting a measurable improvement in overall employee satisfaction and mental health," Hunt noted.
Perhaps more significantly, the training achieved one of Aurora Energy's primary objectives: improving employees' knowledge of available support services. Hunt reports that awareness of where to access mental health support services rose from 83% to 91%.
"Alongside these figures, anecdotally we know that the training sparked important conversations for staff both inside and outside the office," she added.
While workplaces undeniably present psychosocial hazards, they also offer unique opportunities for intervention. The concentrated time employees spend in work environments, combined with organisational resources and structured systems, creates conditions where targeted interventions can achieve significant impact.
"When managers and workplaces provide a supportive work environment that nurtures employees mental health, we see better outcomes for employee's wellbeing and productivity," Gayed observed. This dual benefit – improved wellbeing and enhanced productivity – positions workplace mental health initiatives as strategic investments rather than compliance costs.
Understanding workplace factors that represent potential hazards marks an important step toward building better mental health at work. From this foundation, organisations can identify training and knowledge-building initiatives that address their specific needs and circumstances.
The challenge for business leaders lies not in recognising the importance of workplace mental health, but in translating that recognition into systematic, evidence-based action that addresses the root causes of psychological harm while building environments that actively promote wellbeing.
