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WorkSafe's Psychosocial Risk Management Guidelines

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Emily Rust

Psychosocial Risk: The New Leadership Frontier

Following in the footsteps of international practices, WorkSafe NZ has just raised the bar.

In April 2025, new psychosocial risk management guidelines were released - and they come with teeth.

Here’s the link: https://www.worksafe.govt.nz/topic-and-industry/work-related-health/mental-health/managing-psychosocial-risks-at-work/

Making crystal clear for the first time, that businesses are legally required to manage psychosocial risks with the same seriousness as physical hazards. 

It’s not just about ticking a wellbeing box. It’s about redesigning work to support mental health from the inside out.

What are psychosocial risks, you ask?

Psychosocial risks are the work-related factors that can cause or worsen stress — especially when they’re prolonged, poorly managed, or ignored.

They stem from how work is designed, organised, and experienced, and include things like:

  • Unrealistic deadlines or workload pressure

  • Unclear roles or constantly shifting priorities

  • Lack of support from managers or colleagues

  • Workplace conflict, bullying, or exclusion

  • Emotionally demanding work without recovery time

  • Isolation or disconnection from the team

  • Little control over how work gets done

These risks aren’t just about “feeling overwhelmed” — they’re predictors of burnout, disengagement, anxiety, and even physical illness. They also increase the likelihood of mistakes, absenteeism, and turnover.

In short: psychosocial risks are the root causes of workplace stress — and under new WorkSafe NZ guidelines, they must now be managed like any other workplace hazard.

Why This Matters Now

Burnout and work stress aren’t just personal issues - they’re systemic business and leadership challenges. And now, the law agrees.

This is a seismic shift in how we think about health, risk, and leadership.

Managing psychosocial risk is no longer the sole domain of HR or wellness programs - it’s a core leadership responsibility. 

And in some instances, leaders can be held personally liable for a lack of awareness or inaction around psychosocial risks, if they fail to protect workers from mental harm. 

The Old Way: Wellness Wednesdays and Hope

Traditionally, many workplaces have responded to mental health risks with surface-level “wellbeing” solutions:

  • A morning tea for Mental Health Awareness Week

  • Posters in the kitchen

  • An EAP phone number buried in onboarding paperwork

These aren’t bad things. But they’re nowhere near enough.

The Shift: Systems, Not Stickers

WorkSafe’s new guidelines outline a clear process - and a new expectation - one that mirrors a standard physical health and safety system:

  1. Identify Hazards - Look at workload, team dynamics, role clarity, isolation, and emotional demands. Not just “how people feel,” but what’s causing the strain.

  2. Assess the Risk - What is the likelihood and severity of harm if nothing changes?

  3. Control the Risk - Make changes to how work is structured or led. Think: role redesign, flexible work practices, resourcing adjustments, regular workload check-ins and prioritisation or redistribution practices, or clearer communication.

  4. Monitor and Review - This isn’t a one-off exercise. Regularly check whether controls are working - and involve your people in the conversation.

Here’s what action looks like

1. Identify the Hazards

Start by mapping the sources of mental stress in your environment.

  • Ask: Where are the pressure points? (e.g. unrealistic deadlines, unclear roles, high emotional demands).

  • Use surveys, anonymous feedback, or team pulse checks.

  • Invite input directly in team discussions: “What’s making work feel harder than it should right now?”

2. Assess the Risks

Not all psychosocial hazards are equal.

  • Evaluate how likely each hazard is to cause harm and how severe that harm could be.

  • Consider both individual and team-level impacts - e.g., is one person shouldering invisible emotional labour?

3. Design Practical Controls

This is where leadership shows up.

  • Reduce overload: Simplify systems, remove “busy work,” and clarify priorities.

  • Address isolation: Enable social connection - through buddy systems, check-ins, or collaborative goals.

  • Clarify roles: Review job descriptions or responsibilities. Ambiguity fuels stress.

  • Enforce reasonable hours: Model and normalise switching off.

4. Talk About It

Normalise mental health as part of everyday conversations.

  • Open meetings with a “check-in” question.

  • Share a personal story or boundary you’ve set - it signals safety and sets the tone.

  • Build psychological safety by thanking people for raising tough issues.

5. Monitor and Adjust

Psychosocial risk isn’t one-and-done.

  • Revisit controls regularly - what’s working, what’s not?

  • Use brief monthly pulses to track improvements or new issues.

  • Celebrate changes - this encourages continued feedback.

The Bottom Line

This isn’t just compliance. It’s culture. And leaders are the lever.

By taking psychosocial risks seriously, you’re not just avoiding penalties - you’re creating a healthier, higher-performing workplace for the long haul.