Unlocking Business Success: How Psychologists Can Help SMEs Reduce Psychosocial Risks
June 29, 2023
Sarah Cox and Henry McNicol, Psychologists at LYSN.


Small businesses in Australia are facing unique psychosocial risks due to their limited resources and workforce size. Common psychosocial hazards facing small to medium businesses can include inadequate reward and recognition systems, limited job control and support, and challenges regarding job demands and role clarity. These can all contribute to increased risk for employees and business owners. 


Safe Work Australia has recently highlighted the importance of being aware of recent changes to laws that now place a heightened emphasis for business owners to identify and manage psychosocial hazards in the workplace. This can be particularly challenging for small to medium businesses where resources may be limited, policies and procedures may not be clearly documented and organisational change can be difficult to manage in a structured way. 

 

It is crucial for companies to remain informed and take proactive steps to comply with these new requirements. Failure to do so may place employees at risk and expose your businesses to serious consequences, including legal penalties, financial burdens, and damage to your business's reputation. For these reasons, many businesses are seeking expert guidance from psychologists and workplace wellbeing specialists for assistance in navigating the risks within their workplace and maximising employee wellbeing and safety.


There are 4 simple steps businesses can take to recognise and address psychosocial risks to help protect the mental health and wellbeing of their employees, based on Safe Work Australia’s four-step risk management process to manage psychosocial risks in the workplace. 


Step 1: Identify Potential Psychosocial Hazards

Psychosocial hazards are conditions that can cause stress or harm to workers' health. They include:

  • Pressure from workloads or working conditions 
  • Low job control (the ability to decide how you do your work)
  • Lack of social support from colleagues and managers
  • Workplace bullying 


Step 2: Assess Risk

This can be done by analysing factors such as:

  • Levels of absenteeism and workers compensation claims.
  • The percentage of time spent on tasks that are known to increase stress levels (e.g., intense deadlines).
  • The degree of control employees feel they have over their work environment and decisions at work (e.g, whether there are policies in place for flexible working hours).


Step 3: Implement Controls

Controls are the policies and procedures you put in place to help your employees  work safely and productively. The controls should specifically link to the identified hazards, and should address all aspects of the employee experience from recruitment and onboarding, through to ongoing workplace practices. Simple controls may include providing a position description and code of conduct for new employees. More complex controls may include policies and processes regarding access to employee assistance programs, and providing education on work-place mental health, bullying and conflict resolution.


Step 4: Review & Update Controls

This can feel like  a time-consuming process, but it's important to regularly review the psychosocial risks and controls in your business, and keep up with the latest trends and threats in your industry. The most effective way to do this is by creating a schedule for reviewing risks and controls on an annual basis.

Staying compliant with laws, regulations and employer responsibilities are top priorities for any organisation. As a result, it's essential to stay up-to-date with regulatory  changes to ensure that your organisation remains fully compliant and avoids any potential legal issues.


Due to their limited resources and workforce size, many small businesses in Australia may benefit from expert guidance and coaching in managing the psychosocial risks faced by their organisation.   



According to Sarah Cox, Head of Clinical Governance and Psychologist at LYSN, the role of mental health clinicians in reducing risk is unique.  “As mental health professionals we can help leaders reduce business risks by providing them with valuable insights and strategies to improve their decision-making and communication skills. Mental health professionals can help a leader identify potential cognitive biases that may be impacting their decision-making, such as confirmation bias or overconfidence bias, and work with them to develop strategies to mitigate these biases.”


“Workplace psychologists and social workers can help leaders improve their communication skills, including active listening, empathy and conflict resolution, which can help prevent misunderstandings and miscommunications that could lead to business risks. Leaders can gain a better understanding of their own strengths and weaknesses, as well as the strengths and weaknesses of their team, which can help them reduce the likelihood of business risks by working with LYSN leadership coaches”, according to Sarah.


Lysn’s team can provide psychology and wellbeing support that can assist in protecting your employees and business from psychosocial hazards. LYSN is experienced in helping leaders create a culture in which people feel comfortable speaking up about potential hazards or risks, and in which managers are open to receiving feedback and taking action to address risks. LSYN can provide guidance for leaders and employees in many areas including:

  • navigating difficult workplace conversations
  • identifying and addressing mental health issues in the workplace
  • addressing workplace bullying
  • preventing the development of mental ill-health
  • conflict management. 


By addressing these issues early, Lysn can help businesses prevent the development of more entrenched workplace mental health and wellbeing issues, and help protect businesses from workers compensation claims and legal disputes. Our experienced clinicians can assist at all levels of your organisation and assist managers with education and workshops, employee counselling, leadership coaching and critical incident response. 


Get in touch with us today at welysn.com to learn more and prioritise the mental health and wellbeing of your team.



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Top Mental Health Issues in Australian Young Adults

By Lesley Gregg, Head of Sales and Marketing LYSN • July 24, 2023
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By Lesley Gregg, Head of Sales and Marketing, LYSN • July 24, 2023
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By Nancy Sokarno, is a Psychologist at LYSN • July 11, 2023
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