WTF are psychosocial hazards and why you need to care about them in a startup

Psychosocial health and safety is a hot topic right now, but what does is actually mean for startups and small businesses?

If you’re scratching your head wondering “WTF are psychosocial hazards?” you’re not alone. Let’s break it down.

What is a psychosocial hazard?

Psychosocial hazards are elements within the workplace that can negatively impact an employee’s psychological health and well-being and may cause psychological or physical harm. A psychosocial hazard arises from or relates to the design or management of work, the working environment, and workplace interactions or behaviours.

These hazards can include factors such as job demands, low job control, poor support, lack of role clarity, poor organisational change management, and bullying.

These aren’t just your typical stresses of a deadline or a busy season—they’re more insidious and can lead to serious mental health issues if left unaddressed.

Why your startup needs to know about psychosocial hazards

Creating a workplace that promotes positive mental health is not only better for your business’s bottom line, but also ensures you are taking action to manage risks and ensure compliance.

In April 2022 amendments to the Work Health and Safety Act were introduced which mandates that all business are required proactive action to prevent harm to their workers, the outcomes of non-compliance can include WHS investigation, fines, and legal action.

The Psychosocial health and safety Code of practice regulates that even small business are required to take proactive action to prevent psychological harm to their workers.

As a small business your people are your biggest asset, and creating a workplace that supports worker mental health improves retention and ensures you are an employer of choice. The future workforce Gen Z, has identified Mental health support as an minimum expectation from their future employers.

Common Psychosocial hazards for startups

Workplace Bullying and Harassment: This includes any repeated, unreasonable actions directed towards an employee or group of employees, intended to intimidate, degrade, or humiliate. Misha Garg and Lucy Wark formed a website called Grapevine to share personal stories about harassment and discrimination in Australian tech companies and startups. Misha Garg believes the rapid growth of the Australian startup sector over the past decade has made it more susceptible to issues of bullying and harassment.
High Job Demands with Low Control: Startups are notorious for high stress, long hours. When employees are overloaded with work but have little say in how they perform their tasks, it leads to a sense of helplessness and burnout. A European study found 87% of startup employees said that working at a startup had negatively impacted their mental health at some point with 84.5% pointing at burnout as the cause.
Remote work For example, the 2023 State of Remote Work report by Buffer, Nomad List and Remote OK reveals that 23% of remote workers struggle with loneliness because they thrive on the energy of others to feel motivated and productive. For others, when home becomes the primary workspace, they can’t keep the lines between their personal and professional lives from blurring.

Getting started

The first step is to take the time to consult your workers and listen to concerns they might raise about the design of work, safety or risk issues, and the workplace culture. Your workers are also best placed to be able to offer any solutions or suggestions that may improve the psychosocial health and safety of the work environment.

Under the Psychosocial Health and Safety Code of Practice business need take action to assess risks and mitigate any harm as much as reasonably practicable.

Identify psychosocial hazards and risks
Assess the impact of psychosocial hazards
Consider actions to manage and mitigate these risks as much is reasonably practicable
Monitor and review these actions to ensure they keeping workers safe

Don’t Be Caught Out By Invisible Hazards

Addressing psychosocial hazards is crucial for promoting mental health, ensuring compliance with safety regulations, and maintaining productivity and employee retention. Startups face specific challenges such as workplace bullying, high job demands with low control, and issues related to remote work.

At Foremind, we’ve developed a range of tools to help businesses develop a strong psychosocial safety system get you started with your risk management process, and easily keep track of any documents any actions taken.

Louise Thompson is the psychosocial health and safety and clinical director at Foremind,