When safety becomes oxygen: The rise of psychosocial risk in Australian workplaces

Psychological safety is having its moment – but this is not new

When safety becomes oxygen: The rise of psychosocial risk in Australian workplaces

Psychological safety is being talked about everywhere right now. This topic is dominating LinkedIn conversations right now.

It is shaping strategy, influencing leadership, and becoming part of how organisations define culture. But what is happening underneath that visibility is far more significant.

Psychological safety is no longer just a cultural aspiration - it is becoming a formal workplace obligation.

Across Australia, and particularly in New South Wales, the regulatory environment is evolving to explicitly include psychosocial hazards within Work Health and Safety (WHS) frameworks. These hazards, which include high job demands, poor support, unclear roles, and harmful workplace behaviours, are now recognised as risks that must be actively managed, just like physical hazards.

Under Safe Work Australia’s model WHS laws, organisations are already required to identify, assess, and eliminate or minimise psychosocial risks as far as is reasonably practicable.

And importantly, this is no longer theoretical guidance.

From 2025 onwards, every Australian jurisdiction has moved to explicitly regulate psychological health and psychosocial hazards, reinforcing that these risks must be embedded within standard safety management systems.

In New South Wales, the Code of Practice for Managing Psychosocial Hazards at Work and strengthened WHS Regulations now require organisations to apply formal risk management approaches,  including eliminating risks where possible and applying control measures where they cannot be removed.

This is a profound shift.

It moves psychological safety out of the realm of “good leadership” and firmly into governance, compliance, and accountability.

A reality playing out across industries

This shift matters because the impact is already being felt.

Across industries such as construction, healthcare, resources, and frontline services, organisations are dealing with rising fatigue, burnout, and disengagement, often driven not by a single event, but by the cumulative effect of poorly designed work and sustained pressure.

Psychosocial hazards are not always obvious. They build over time, interact with each other, and create environments where stress becomes the norm rather than the exception.

This is not about fault. It’s about understanding what has always been there, but is now being named, measured, and regulated.

Mental health is not something new – we just talk about it more these days.

And that shift in language is now driving structural change.

Psychological safety and psychosocial risk – two sides of the same reality

To understand the significance of this moment, it’s important to separate – and connect – two ideas.

Psychological safety is the experience people have at work. It is the sense that it is safe to contribute, question, learn, and be visible without fear.

Psychosocial hazards are the conditions that threaten that experience – how work is designed, how people are led, how pressure is applied, and how relationships are managed.

Legislation is now targeting the hazards.

But leaders must understand that building psychological safety is the most effective preventative control available.

Psychological safety is like oxygen

Psychological safety is like oxygen. When it’s in the room, we don’t even notice it. The second it’s gone, it’s all we notice.

That absence is no longer just cultural  – it is now measurable risk.

When safety disappears, organisations don’t just lose engagement. They increase exposure to harm.

Where this becomes most tangible – and most actionable – is at the beginning.

Not in strategy documents.

Not in frameworks.

But in the first days, weeks, and months of employment.

The missing link in the onboarding experience

The probationary period has an impact on psychological safety and is a missing link when designing your onboarding experience. There are ways to use comfort zones in the beginning phase of the employee lifecycle to improve learning, increase retention and build performance – leading to successfully and swiftly passing through the probation period.

Starting a new job is a stressful situation. There are high hopes that it will all work out, however, there is a looming and persistent worry about losing the job.

A mistake or an awkward conversation can make the heart of a new employee pound and breath quicken, muscles tense and beads of sweat forming. This cascade of stress hormone production, physiological and psychological change is known as “fight-or-flight”.

New employees come to you with optimism, but also with a survival mechanism. Just like any other mammal ready to react quickly to any threatening situation.

A carefully orchestrated onboarding experience with a high degree of psychological safety can help your new employee fight the threat of ‘not being everything you need them to be’ straight away and avoid fleeing to safety.

We have seen new employees go through the ‘try before you buy’ unpaid trial, which often (thankfully) evolves into a paid trial. And then comes the probationary period, which still reeks of ‘congratulations you got the job, but you’re still on trial’.

The new employee feels optimistic and hopeful, and there are many reasons they should be. But there is still an element of uncertainty and doubt.

The real question to ponder is: do we need probationary periods if we hire right?

Yes, there is a need to safeguard we as employers if an employee is not a good fit or does not perform. But perhaps there are better alternatives. At the very least, by acknowledging the impact the probationary experience can have, and being aware that we have a duty of care to a new employee to waive it as soon as possible.

A new employee wants to form and maintain social relationships. One of the central desires of any human is to obtain social acceptance, and so many of our functions and activities are geared towards promoting that goal. So, if we know that acceptance is key to building a sense of belonging and reassurance, then it becomes obvious that the probationary period can stifle the feeling of acceptance.

So how do we accelerate how soon a new employee feels accepted?

Consider how a hungry person may grow hungrier when food is denied but feels less hungry after a big meal. The same applies to feeling socially accepted. When someone receives feedback with a message of social acceptance, their motivation to build on those relationships is more likely to be satisfied, which should make them feel more at ease.

Therefore, the conversations throughout the probationary period should be centred around building acceptance, belonging, and reassurance. It is on us as the leader to instigate those conversations, as a new employee is not going to reveal they are feeling unsafe. That only heightens the feeling of being under threat.

It is better to lead with acceptance, rather than ‘testing’ or ‘trialing’. This language can make or break the onboarding experience.

It is also worth considering how when people feel that there is the slightest likelihood that they may be rejected, their desire to find acceptance may be intensified. This is a massive responsibility as an employer. We have a duty of care to a new employee to build a psychologically safe environment, even when they are on probation.

As the employer, we are the decision-makers in the probationary period. Empathy is the most important leadership capability when leading a new employee.

A new employee, regardless of how excellent onboarding has been, will count down the weeks and days until probation is passed.

So, let us raise our awareness, reduce the ‘fight-or-flight’ response, and build meaningful relationships based on acceptance and empathy.

It is time to move away from the traditional probationary period and commit to delivering a better onboarding experience by building psychological safety.

The bottom line

What we are seeing right now in Australia is not a trend.

It is a structural shift.

Psychological safety is being brought into the same conversation as physical safety – with the same expectations of identification, prevention, and control.

The difference now is consequence.

Because under today’s legislation, psychosocial hazards are not something organisations can ignore, minimise, or reframe as “just part of the job.”

They must be managed.

They must be designed out where possible.

And they must be taken seriously.

Which brings us back to the simplest truth in all of this:

Psychological safety is not a perk. It is not a program. It is the oxygen people need to function.

And now – more than ever – it is something organisations are expected to actively protect.

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