Gallagher has issued guidance to help businesses meet the requirements of the Work Health & Safety Act concerning the management of psychosocial risks in the workplace – something that could help insurance companies and brokers who are looking to better understand and support their clients in navigating these challenges.
The guide’s focus is on identifying and managing mental health risks, which can often be difficult to detect but have significant implications for employee wellbeing.
Psychosocial hazards are defined as any workplace factors that could negatively impact an employee’s mental health. Safe Work Australia provides detailed guidelines to assist employers in recognising these hazards and implementing appropriate measures to mitigate them.
Gallagher emphasised that understanding and identifying psychosocial hazards is critical for any business.
Safe Work Australia highlights several key categories of these risks:
Employees may face excessive physical, mental, or emotional demands. Examples include long work hours, inadequate breaks, or tasks that require skills beyond an employee’s training.
Conversely, tasks that are overly repetitive or monotonous, or prolonged periods without tasks, can also be harmful, leading to disengagement and skill erosion.
A lack of support from supervisors or peers, or insufficient resources to complete tasks safely and efficiently, can create significant stress.
When employees have little control over how and when they perform their tasks, including restricted flexibility in taking breaks, this can lead to frustration and stress.
Ambiguity about job responsibilities, especially when roles and expectations frequently change, can contribute to stress and confusion among employees.
This includes any harmful interactions, from workplace bullying and harassment to aggression, which can come from colleagues, supervisors, or even external parties like clients.
Other psychosocial risks identified include poor organisational change management, inadequate recognition and reward systems, exposure to traumatic events, and the challenges of working in isolated or remote locations.
Gallagher encourages businesses to actively identify and manage psychosocial risks. This can be achieved by engaging with employees through consultations, conducting surveys, and using tools such as the People at Work psychosocial risk assessment tool.
Monitoring workplace behaviours, reviewing business data such as incident reports and absenteeism, and establishing clear communication channels for employees to raise concerns are also recommended. Additionally, businesses should evaluate the frequency, duration, and intensity of exposure to potential hazards.
The brokerage giant emphasised that businesses must proactively manage workplace hazards to prevent them from escalating into serious issues.
“In most workers compensation claims, an eligible injury is one arising from working conditions occurring in the course of employment, with many workers compensation schemes specifying that employment must be the main or major contributing factor,” it said.
Gallagher also addressed the impact of Australia’s ageing workforce on businesses.
As the population ages, a growing number of older employees remain in the workforce, creating both challenges and opportunities for employers.
The brokerage noted that the rate of workforce participation among Australians over 60 has more than doubled over the past 20 years. Several factors contribute to this trend, including increased flexibility in the workplace, tighter labour markets, improved health, and the ability to work remotely due to technological advancements.
Employing older workers presents unique risks, including potential liability for age discrimination and challenges in meeting duty of care obligations.
Gallagher suggested businesses consider employment practices liability insurance to help mitigate these risks. Companies may also need to modify safety training, task assignments, and work processes to accommodate the needs of older workers.
It is also crucial for businesses to establish clear health and safety policies to avoid regulatory and legal challenges. The brokerage noted the importance of being able to distinguish between age-related health issues and those caused by workplace conditions when dealing with claims.
