The unseen threat: Tackling psychosocial risk in the workplace
Protecting the health and safety of employees is a central pillar of any people strategy. Employers need to ensure they have robust policies and procedures in place to safeguard the wellbeing of their workforce — including their mental health.
In today’s modern, fast-paced world of work, there are a growing number of ‘unseen’ factors that can pose a threat to the mental health of employees. These psychosocial risks include:
- Workload and work pace
- Work-life challenges
- Toxic leadership behaviors, job demands and insecurity
- Organizational culture
- Violence, harassment and bullying
Such risks are typically the result of poor job design or an unhealthy management culture — factors that can have a major impact on employee health and well-being. Mercer Marsh Benefits (MMB) Health Trends 2025 report showed that psychosocial risks (toxic work environment, stress from work pressures), were the number three risk factor on employer-sponsored medical plan costs globally, according to insurers. And yet MMB’s People Risk 2024 research found that just 29% of employers have effective initiatives in place to create a psychologically safe workplace and address work-related causes of mental distress.
Clearly, employers need to do more to tackle psychosocial risks and create a healthy, supportive work environment. Where should they start?
Raise awareness and understanding of psychosocial risk factors
Identify psychosocial risks through employee listening
Protect and promote mental health at work by managing risks
Figure 1: Work factors impact employee health
The graphic highlights several key factors that contribute to a healthy work environment and employee well-being:
- Job security
- Living wage and adequate retirement funding
- Social and community supports
- Planned scheduling and reasonable working hours
- Manager support
- Organizational values and justice
- Affordable health insurance
- Reasonable job requirements
These elements emphasize the importance of creating a supportive workplace that fosters employee health and addresses psychosocial risks. By focusing on these areas, organizations can facilitate positive change and enhance overall workplace wellness.
Build better care pathways
The Mental Health Continuum graphic outlines various aspects of mental health support and intervention strategies. It emphasizes the importance of a comprehensive approach to mental health that includes:
- Starting the conversation - Anti stigma campaigns, manager training, and navigation tools that assess and direct members to the right level of care.
- Resiliency: General well-being supports and specific focus on mindfulness and resiliency.
- Early Intervention Programs: Services such as Employee Assistance Programs (EAP) that provide support for stress, anxiety, and relationship issues.
- Provide Treatment: 1:1 therapy or group psychological support and inpatient care for mental health needs. Health insurance plans often focus only on this component.
- Ongoing Recovery Support: Policies and programs that assist employees in their return to work after treatment, ensuring they have the necessary support.
- Support for Special Populations: Acknowledgment of the diverse needs of different populations, ensuring that psychiatric and clinical support is tailored accordingly.
- Crisis Intervention: Human Resources processes that address workplace crises, including violence, suicide threats, and traumatic events..
This comprehensive framework highlights the multifaceted nature of mental health care and the importance of addressing psychosocial risks in the workplace. By implementing these strategies, organizations can foster a healthier work environment and support their employees' mental well-being effectively.
Government legislation on psychosocial risks
In several countries around the world, governments are mandating employers to do more to manage psychosocial risks in the workplace.
Australia has been particularly progressive in this regard. In recent years, its governments has introduced several major pieces of legislation aimed at ensuring employers improve their psychosocial health and safety practices, including the ISO 45003 standard in 2021. Most recently, it added the ‘right to disconnect’ amendment to the country’s Fair Work Act 2009, which entitles employees to refuse contact from their employers outside their working hours[2].
The government in Mexico has also been active in recent years. In 2018, it published NOM-035, legislation that compels employers to implement, maintain and disseminate a psychosocial risk policy and to adopt measures for the prevention of psychosocial risk factors — including psychological assessments of workers exposed to these risks[3].
Legislation such as this underscores the need for employers to address psychosocial risks in the workplace but it is important to recognize that simply complying is not enough. Mental health should never be seen as a ‘tick box’ exercise. Organizations need to go above and beyond their legal duties if they are to truly safeguard the mental health of their employees.
- 1 Australia
- 2 Mexico
In 2023, MMB worked with a local government agency in Australia to help address gaps in how they were managing psychosocial risks and mental health. A team of experienced psychologists developed and delivered a three-stage mental health solution to support the agency at all levels. This included:
- Mental health awareness workshops for more than 300 employees, designed to increase mental health awareness, reduce stigma and empower individuals to reach out to colleagues who may need support.
- Training for over 120 leaders aimed at increasing their skills and confidence in navigating mental health challenges within their teams and ensuring they were meeting their legal obligations in this space.
- Mental health first aid training to 60 employees, who now provide an additional layer of support across the organization — particularly for those experiencing a mental health crisis.
Following the success of the program, further training will be delivered throughout 2024 and 2025 to more of the agency’s staff, including new recruits.
Taking a joined-up approach to managing psychosocial risk
Health Trends 2025 report
is Emotional Well-being Manager at Mercer Marsh Benefits
is Head of Advisory, Australia at Mercer Marsh Benefits