Why Managing Isn’t Enough: Leadership’s Role in Psychosocial Safety

Is your leadership team truly shaping the culture of safety and wellbeing in your organisation, or are they simply supervising it from a distance?

That’s the question Louisa Detez, Principal Psychologist and Partner at Australian Psychological Services, posed at the WHS Show in Melbourne. Her message clearly cut through to the crowd: when it comes to mental health and psychosocial risk, leadership can’t stay on the sidelines. It’s not just a support act. It’s part of the risk control system.

“Leaders shape the daily experience of work,” Detez said. “If we’re serious about managing psychosocial risk, we need to stop treating mental health like a side project. Leadership capability has to sit at the centre of our prevention strategy.”

Let’s rethink what we mean by ‘mental health’

Detez began by challenging a limited and often unhelpful idea that mental health is simply the absence of mental illness. That view, she argued, misses the point entirely.

Referencing the World Health Organization, she reframed mental health as the ability to function, contribute, and cope with everyday life. In other words, it’s not about surviving, it’s about creating the conditions for people to thrive.

She introduced the dual-continuum model, which separates mental illness and mental health onto different spectrums. Someone might live with anxiety or depression and still feel engaged and supported at work. Meanwhile, someone without a diagnosis might be quietly languishing.

“We need to stop focusing only on the one-in-five who’ve been diagnosed,” Detez said. “And start supporting the five-in-five, that’s everyone, who moves along the mental health continuum each day.”

Good intentions aren’t enough

Meditation apps, gratitude journals, wellness days are common wellbeing initiatives most companies have rolled out. But Detez was quick to point out the problem: without structural change, these programs risk being little more than window dressing.

“They often imply that employees are responsible for how they feel,” she said. “But if the root cause of stress is the work environment – unclear expectations, toxic team dynamics, chronic under-resourcing – that’s what needs fixing.”

Put simply, surface-level solutions won’t solve systemic problems. If we treat psychosocial risk the same way we treat physical hazards by identifying the source, assessing the impact, and taking corrective action, we move from band-aids to real prevention.

Her analogy landed hard:

 “If you put a clean fish in a dirty bowl, it won’t stay clean for long. Fixing the fishbowl – the system – is what genuine risk management looks like.”

What does good leadership really look like?

Detez argued that the most powerful lever for change isn’t a new policy – it’s leadership. Not because leaders have all the answers, but because their behaviour sets the tone for everyone else.

Here’s what effective leadership looks like in practice:

• Understand the full context. Look beyond to-do lists and timelines. Consider emotional load, team dynamics, and workplace relationships.
• Have the hard conversations. And create a culture where others feel safe to do the same.
• Offer real support. Adjust workloads. Create space to recover from setbacks. Don’t wait for someone to “break” before stepping in.
• Ask better questions. What’s working? What’s getting in the way? What’s being left unsaid?
• Walk the talk. Take lunch breaks. Switch off outside hours. Show others it’s safe to prioritise their own wellbeing.

By applying the above principles, you’ll build the capability for your leaders to lead people, not just projects. These skills aren’t usually included in standard leadership frameworks.

Clarity is a leadership responsibility

One of the most practical takeaways from Detez’s session was the call for role clarity. Who’s responsible for what when it comes to psychosocial risk? Safety teams? HR? Legal? People managers?

All of them, but not equally.

“You need to be singing from the same songbook,” Detez explained. “Each part of the business brings its own strengths. But if you’re not coordinated, nothing sticks.”

She also warned that while many organizations collect data such as survey results, turnover stats, sick leave spikes, few organisations are connecting the dots. These aren’t just numbers, but when collected and reported in the right way, they can be used as early warning signs of cultural and operational strain.

“We’re not short on data,” she said. “We’re short on insight.”

Managing psychosocial risk starts with how leaders lead

Psychosocial safety can’t be approached like a compliance box to tick. Detez was blunt: with rising expectations from both regulators and employees, reactive leadership won’t cut it.

“It’s a different capability to traditional management, but it’s a skill that can absolutely be taught.” Detez stated.

She emphasized that effective psychosocial risk management goes beyond identifying mental illness or pushing employees to be more resilient. Instead, it’s about creating work environments that reduce unnecessary pressures and barriers, so people aren’t left to manage risks on their own.

True safety leadership isn’t found in policies or reports, but in daily interactions that foster trust, clarity, and support. When leaders embed this approach into how they manage and engage their teams, safety becomes an experience, not just a rule.

Ultimately, safety is shaped and sustained by the leadership culture.

About Louisa Detez

Louisa Detez is a registered organisational psychologist and Principal Consultant at Australian Psychological Services. With a deep passion for workplace wellbeing, Louisa partners with organisations to create environments where people can genuinely thrive. She brings experience across public, private, not-for-profit, and higher education sectors, specialising in psychosocial risk management, trauma-informed frameworks, critical incident response, and leadership capability development.

Connect with Louisa here.

Need expert support in managing psychosocial risk or embedding wellbeing into your organization? Australian Psychological Services works with businesses across Australia to design evidence-based, practical strategies that support compliance and culture. Whether you’re just starting out or looking to go deeper, APS can help you build safer, more human-centred workplaces. Learn more at consultaps.com.au

This blog reflects on the ideas presented by Louisa during her WHS Show talk. Credit and thanks to Louisa and the team at Australian Psychological Services for generously sharing their expertise.