Psychosocial risk management: eight trends with tips
Psychosocial risk management is no longer a secondary concern — it has become a central pillar of workplace safety and organisational sustainability. Heart and Brain Works founder Dr GEORGI TOMA and Communications Manager ALAICA RANCHEZ explore eight current trends shaping the future of psychosocial risk management, with accompanying tips for how employers can stay ahead.
As we move further into 2025, businesses face increasing regulatory scrutiny, shifting workforce expectations and emerging risks driven by technology and globalisation. The focus is now on proactive measures that prevent harm, protect employees and build long-term resilience. Here are eight current psychosocial risk management trends space together with some tips on what employers can do.
1. Regulatory enforcement on the rise
Governments and workplace regulators worldwide are strengthening compliance measures around psychosocial risks. In Australia, all harmonised jurisdictions have committed to psychosocial risk regulations, with WHS regulators intensifying investigations and enforcement.
- SafeWork NSW’s 2024–2026 Psychological Health and Safety Strategy targets industries with high psychosocial risk, such as health care, education and public administration. Large employers (200+ staff) are already experiencing heightened scrutiny, with increased audits and investigations expected.
- WorkSafe Victoria’s Occupational Health and Safety (Psychological Health) Regulations (effective 1 December 2025) are likely to introduce mandatory employer obligations, including risk identification, control implementation and prevention plans for hazards such as workplace bullying, high job demands and sexual harassment.
What employers can do
✔ Conduct comprehensive risk assessments tailored to workforce demographics and job roles.
✔ Implement robust preventative measures and psychosocial risk management frameworks.
✔ Stay ahead of compliance requirements by monitoring regulatory updates and adapting policies accordingly.
2. Legal precedents and the rise of workplace litigation
The legal landscape is shifting, as courts increasingly hold organisations accountable for failing to manage psychosocial risks. A landmark case in 2024, Elisha v Vision Australia, resulted in a $1.4 million payout due to a poorly handled termination process, with findings of contractual breaches and procedural unfairness.
Key lessons
- Contractual adherence: Ensure employment contracts and workplace policies are strictly followed.
- Procedural fairness: Maintain transparent, well-documented investigation processes.
- Early intervention: Address workplace concerns proactively before they escalate.
- Leadership training: Equip managers with the skills to handle psychosocial risks effectively.
What employers can do
✔ Strengthen HR processes to ensure fair and transparent workplace decisions.
✔ Train leaders in early intervention strategies and psychosocial risk management.
✔ Hold managers accountable for fostering psychologically safe workplaces.
3. Technology: a double-edged sword
AI, automation and workplace surveillance tools are transforming industries for the better, but they also introduce new psychosocial risks.
Benefits
- Increased safety
- Efficiency
- Risk mitigation
Risks
- Increased cognitive load — complex decision-making responsibilities leading to stress and fatigue.
- Workplace anxiety — AI monitoring and surveillance reducing trust and morale.
- Job insecurity — fear of automation-driven job loss.
- Over-reliance on technology — potential safety risks when human judgement is overridden.
What employers can do
✔ Assess the psychological impact of workplace technology.
✔ Implement ethical AI and surveillance policies.
✔ Involve employees in decision-making around new technologies.
4. Breaking silos: integrating WHS and HR for better risk management
Traditionally, WHS teams have focused on compliance and safety, while HR managed workplace conduct and interpersonal issues. It is now imperative that these departments work together to create a unified approach to psychosocial risk management.
What employers can do
✔ Align WHS and HR policies to streamline psychosocial risk management.
✔ Develop clear reporting and investigation processes for psychosocial complaints.
✔ Foster cross-functional collaboration to build safer, healthier workplaces.
5. Evolving workforce demographics: managing new challenges
Changing workforce demographics are introducing new psychosocial risks.
New risks
- An aging workforce — 22% of workers will be over 60 by 2050, increasing the need for awareness of age-related risks.
- Multigenerational teams — up to five generations working together, often with different communication styles and expectations.
- Global and remote workforces — cross-time-zone collaboration, leading to work–life balance challenges.
- Hybrid work models — flexibility benefits countered by risks like digital fatigue and isolation.
What employers can do
✔ Develop multigenerational leadership training.
✔ Implement wellbeing initiatives tailored to remote and hybrid teams.
✔ Address psychosocial risks across diverse worker demographics.
6. The gig economy: addressing risks for non-traditional workers
The rise of freelancers, contractors and gig workers presents new challenges for psychosocial risk management. These workers face heightened stress due to job insecurity, unpredictable workloads and limited workplace protections.
What employers can do
✔ Recognise duty-of-care obligations for contractors and freelancers.
✔ Provide access to mental health resources for gig workers.
✔ Implement fair workload management practices.
7. Leadership training: the key to preventing psychosocial harm
Managers play a pivotal role in managing psychosocial risk, but many struggle with recognising risks, handling difficult conversations or applying effective controls.
What employers can do
✔ Invest in leadership training focused on psychosocial risk management.
✔ Prioritise conflict resolution, communication and procedural fairness.
✔ Embed a culture of psychological safety from the top down.
8. A global shift: mental health at work as a worldwide priority
Mental health is now a global policy focus, with countries worldwide strengthening their legal frameworks. According to the World Health Organization:
- 15% of working-age adults experience a mental health disorder.
- 12 billion workdays are lost annually due to mental health issues, costing US$1 trillion in lost productivity.
- More countries — including Belgium, Sweden, Mexico, Chile, Canada and Japan — are enacting stronger workplace mental health protections.
- ISO 45003, the global standard for psychosocial risk management, is gaining traction internationally.
What employers can do
✔ Align workplace policies with international best practices.
✔ Stay informed on global trends in workplace mental health regulation.
✔ Recognise mental health as a competitive advantage in talent retention and productivity.
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4 key priorities for 2025
1. Strengthen psychosocial risk identification and management
- Conduct regular risk assessments.
- Consult employees to identify emerging risks.
- Address risks before they escalate.
2. Harmonise WHS and HR approaches
- Break down silos between departments.
- Streamline risk reporting and response systems.
3. Invest in leadership training
- Equip managers with practical skills for psychosocial risk management.
- Ensure early intervention strategies are in place.
4. Stay on top of compliance changes
- Monitor legislation and case law updates.
- Adapt policies to meet evolving legal requirements.
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