Beyond Compliance: Enhancing Employee Wellbeing & Psychological Safety to Prevent Psychosocial Risks
I was sitting in the boardroom after spending two hours in a workshop on the consequences of burnout with the managers of an IT company. The CEO stopped by as I was packing up. He looked thoughtful and started the conversation with this -
“I know we have to do something about this, but where do we start?”
I’ve heard this before. There are plenty of well-intentioned leaders out there who are getting the risk assessment done, ticking the compliance box with a seal of approval from their lawyers. And washing their hands of it.
And yet the risk remains. You can tick off the risk assessment and still land in hot water if you’re not actively surveying and managing the hazards on an ongoing basis.
Organisations are increasingly required to address psychosocial risks. But compliance alone is not enough. Simply "ticking the box" on psychological health and safety policies doesn’t ensure real risk reduction - just as installing a seatbelt on a rollercoaster doesn’t guarantee safety if it’s never checked or fastened.
To create a truly resilient workforce, businesses must go beyond compliance and actively move the needle on wellbeing and psychological safety.
The Cost of Ignoring Psychosocial Risk
Organisations that treat psychosocial risk as an afterthought face serious consequences.
Take the following cases for example:
1. Two accountants from Cobar Management Pty Ltd suffered psychological injuries from unclear roles, excessive workloads and challenges with time zone variation with the NSW regulator accepting over $1 million for an enforceable undertaking. The accountants were working with executives based in Switzerland and worked excessive hours to meet their deadlines.
2. Court Services Victoria paid approximately $380,000 in fines following legal action due to significant distress faced by their workers. The main findings pointed to high workloads, poor workplace relationships, and role conflict leading to a harmful work environment.
Workplace stress costs the Australian economy $14 billion annually, leading to increased absenteeism, burnout, and turnover. Employees today expect more from their employers.
83% of respondents believe their wellbeing is as important as their salary in a study by Deloitte (2023).
60% of people consider wellbeing a top priority when choosing a job (McKinsey Health Institute, 2022).
A workplace culture that neglects wellbeing isn’t just a compliance risk - it’s a business risk. Companies that fail to act see higher attrition rates, disengagement, and ultimately, a negative impact on their bottom line.
Lessons from Alcoa: More Than Just Compliance
In 1987, Paul O’Neill took over as CEO of Alcoa and made safety his top priority. Despite being technically compliant, Alcoa was still experiencing workplace injuries. O’Neill recognised that real safety required more than policies—it needed cultural change.
He built a system where:
Employees were empowered to flag risks.
Leadership was held accountable.
Safety became a business priority, not just a compliance checkbox.
The result?
Workplace injuries plummeted. Productivity and innovation soared. Alcoa’s market value quintupled.
The lesson is clear: true protection - whether physical or psychological - requires action, accountability, and leadership buy-in.
Moving from Compliance to Proactive Vitality Management
A proactive approach to wellbeing and psychosocial risk doesn’t just prevent harm - it creates a thriving culture. One powerful way to achieve this is through the Proactive Vitality Management Model, which helps organisations embed wellbeing into their operational DNA.
This model consists of four key pillars:
Energy & Recovery: Encouraging sustainable work practices that prevent burnout, such as flexible schedules and workload management.
Connection & Community: Meaningful connection, peer support, and a psychologically safe environment.
Purpose & Engagement: Strengths-based roles and a sense of meaning for people in their work.
Growth & Adaptability: Equipping teams with the skills and mindset needed to navigate change and build resilience.
These elements assist organisations to move beyond compliance and create a culture of vitality that drives long-term success.
Key Steps to Proactive Wellbeing Management
Go Beyond Policies – A risk assessment is a start, but it’s not the solution. Wellbeing must be integrated into everyday business strategy through proactive strategies.
Prioritise Psychological Safety – Employees should feel safe to speak up about workplace concerns without fear of retaliation.
Address the Root Causes – Long hours, unmanageable workloads, and toxic leadership can’t be fixed with surface-level perks like free yoga or mindfulness apps.
Engage Leadership – Just as Alcoa’s transformation was driven from the top down, leadership must champion wellbeing.
Measure and Adjust – Organisations must continuously assess wellbeing maturity and adapt their strategies based on feedback and real outcomes.
Take the Next Step
Many organisations are stuck in "tick-the-box" compliance mode when it comes to psychosocial risk. If you’re unsure where your organisation stands, take our free Workplace Wellbeing Health Check for a snapshot of your wellbeing maturity level.
And if you’re ready to go beyond compliance and create a workplace where employees truly thrive, join us:
Masterclass: Beyond Compliance – Proactive Vitality & Psychosocial Risk.
Wednesday, 30 April
12pm AEST
Live on Zoom
60-minute masterclass + 20-30 minute Q&A
Recording and resources provided
GET Help bringing your wellbeing project to life
Do you want expert support in delivering a wellbeing project to your workplace or community?
Or are you hoping to bring evidence-based behaviour change to your teams?
Bringing wellbeing to small and large groups is not always a straight-forward practice.
It requires you to have an in-depth understanding of the topic, skills in research and presenting, and an ability to adapt and be flexible when project needs change.
If you’d like help putting together and delivering a wellbeing project, we can help.
We’ve worked with national and international clients to design and deliver educational programs and content to create lasting change within workplaces and community groups. We’d love to talk with you about how we can help you reach more people and get better results.