The Power of Psychosocial Health in Shaping Workplace Wellbeing 

Category: Health & Safety
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The Power of Psychosocial Health in Shaping Workplace Wellbeing 

At the OHS Leaders Summit in New Zealand, a crucial conversation unfolded around psychosocial health—a topic that’s often overshadowed by its more tangible counterpart, physical health. Yet, the discussion revealed an undeniable truth: psychosocial health is just as vital for workplace safety and productivity as physical wellbeing. At HSI Donesafe, we stand firm in this belief, advocating for a holistic approach to employee health that includes both physical and psychological safety. 

Safety extends to mental wellbeing, the emotional landscape, and the support systems that can either uplift or drain an individual’s performance. This focus group discussion on psychosocial health provides invaluable insights into the deep-rooted challenges and the actions needed to create safer, healthier workplaces.  

As Mark Oostergo, CEO of Australian Psychology Services stated:

If we’re serious about protecting people, we need to expand our definition of safety.” 

As leaders in EHS software, we understand that workplace safety is not confined to hard hats and safety goggles. 

Let’s dive into these insights and explore how psychosocial health can no longer be an afterthought in organizational wellbeing strategies. 

The Dangers of Ignoring Psychosocial Health 

Imagine working in an environment where stress is normalized, where burnout is part of the job description, and where employees feel unsupported in navigating mental health challenges. For many, this is a daily reality, yet the damage this does to individuals and organizations alike is often invisible. 

The focus group highlighted the strong correlation between psychosocial health and key business metrics such as turnover, absenteeism, and overall productivity. When employees face mental health challenges due to workplace stressors, disengagement follows. Turnover rates rise. Absenteeism skyrockets. Performance and morale plummet. This isn’t just a “soft” issue—it’s a business imperative. Organizations that ignore the psychosocial health of their teams are risking both human and financial capital. 

Mark shared a compelling example from his previous experience with an aged care facility, where psychosocial risks contributed to increased absenteeism, verbal abuse, and greater clinical incidents. The organization had to invest heavily in improving mental health support to break this cycle. And it worked. He explains,

“We had to intervene when our staff burnout started affecting patient care, absenteeism, and even led to more incidents. Improving mental health support turned things around.” 

The link between improved psychosocial health and better business performance became undeniable, proving that looking after the mind is just as critical as looking after the body.  

“Psychological safety isn’t achieved with good intentions alone; it requires action from the top down.”

Psychosocial health isn’t just about offering yoga classes or providing fruit bowls in the break room. It’s leadership, culture, and communication. Darren Evans, Chief Safety and Risk Officer, Auckland Airport, “Psychological safety isn’t achieved with good intentions alone; it requires action from the top down.”  Strong leadership can foster an environment where psychological safety is as important as physical safety. When leader’s role-model positive behaviors and demonstrate a genuine commitment to employee wellbeing, they set a precedent for the entire organization. 

The focus group discussed how engagement and wellbeing were strongly influenced by how leaders modelled healthy behaviors. When leaders promote work-life balance, encourage open conversations about mental health, and prioritize the psychological safety of their teams, employees feel empowered to take care of their own mental health. But when leaders neglect this area, the effects are far-reaching—disengagement and mistrust quickly set in. 

This is where HSI Donesafe’s approach comes into play. We advocate for a digital EHS solution that tracks not just physical risks but psychosocial ones too. Data collection on factors such as stress, burnout, and mental health allows organizations to identify trends and intervene early. The right tools empower leaders to manage both physical and psychosocial health risks proactively. 

Bridging the Gap 
From awareness to action 

A major takeaway from the discussion was the importance of moving from awareness to action. It’s not enough to simply acknowledge that psychosocial health is important. Leaders and organizations must take concrete steps to address it. The challenge, however, is often in overcoming the stigma around mental health. Employees may feel reluctant to speak up about their psychological struggles, fearing judgment or backlash. In environments where trust is low, people are less likely to admit they are struggling. 

So, how do we break this cycle? The focus group stressed the value of peer networks for support. “Sometimes, the most powerful thing is having a colleague who just gets it,” Mark notes. By creating non-judgmental spaces for employees to talk, be it in small group settings or confidential resources, workplaces foster a culture of understanding.  

However, it’s equally important to address the root causes of psychosocial risks—like poor job design, unrealistic expectations, and toxic workplace cultures. The group agreed that providing employees with a safe space to speak up is essential, but addressing the underlying factors that contribute to stress and burnout is what creates lasting change. 

The Role of Technology in Promoting Psychosocial Health 

Technology plays a critical role in the future of psychosocial health in the workplace. By utilizing data to understand the current state of employee wellbeing, organizations can proactively address emerging issues before they escalate. As Matt Browne, Founder of Donesafe told the audience, “It’s about connecting the dots—using data on employee engagement, absenteeism, and turnover to get a real picture of wellbeing.”  

With the right EHS software, organizations can gather and analyze data on psychosocial risks, ensuring that these critical factors aren’t left unchecked. This data-driven approach, combined with a culture of open communication and leadership commitment, is key to creating a psychologically safe workplace. 

But software will only go so far. As Matt mentioned, the only way to start sharing data is to break down internal siloes. This could be the biggest challenge organizations face.


“We’ve been talking about ‘busting down’ siloes for 20 years… but when you look at who owns the data it can’t be held by one department… We need to share it across the organization, we need coalition and the right stakeholders, plus the right tools to start to see organizations as they exist across the organization… if not you won’t get the really big movement you need to reduce risk in your business”.  

Breaking the Tertiary Cycle 
Prevention over cure  

One of the most powerful insights from the panel was the idea of breaking the “tertiary cycle” in mental health management. Often, organizations refer employees to Employee Assistance Programs once they exhibit signs of distress. While these programs are incredibly valuable, they address symptoms rather than root causes. If employees continue to work in a toxic environment that exacerbates their mental health challenges, they will keep cycling through these services without any lasting improvement. 

“We rely on EAPs like an ambulance at the bottom of a cliff,” Darren observed, pointing out the importance of upstream interventions. 

To break this cycle, organizations must shift focus upstream—investing in prevention rather than only treating the problem once it’s escalated. This means identifying risk factors early and intervening before stress and burnout become systemic issues. By investing in leadership, culture, and the tools to monitor psychosocial risks, businesses can create a safer, more supportive environment for everyone. 

A Call to Action for Businesses 

“Supporting mental health isn’t just good for people; it’s smart business.”

Psychosocial health is no longer a peripheral issue. It’s central to the future of workplace wellbeing, and organizations must embrace it if they are to thrive in today’s challenging environment. As Ben Evans succinctly put it, “Supporting mental health isn’t just good for people; it’s smart business.” Organizations that embrace psychosocial health foster engaged, resilient teams that drive long-term success. 

This is a call to action for every business: Take the mental health of your employees as seriously as their physical health. Engage with them, support them, and equip them with the tools they need to succeed—psychologically and professionally. The data is clear: prioritizing psychosocial health isn’t just the right thing to do; it’s the smart thing to do for the future of your business. 

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At HSI Donesafe, we believe that safety doesn’t stop at the physical. To truly care for employees, businesses must take a holistic approach—one that includes physical safety, psychological safety, and the commitment to creating environments where both can flourish. 

Ready to strengthen your workplace wellbeing? Get in touch with us to explore how HSI Donesafe can help you build a safer, healthier, and more resilient environment for your team. 

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