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Understanding and Addressing Workplace Psychological Injuries: A Proactive Approach for Employers

Scott Montgomery



The rising concern over psychological injuries due to workplace stress is a pressing issue for both employers and employees.


Over the last decade, the percentage of claims related to psychological injuries has increased from 11% to almost 20%, reflecting the severe impact these issues have on businesses, workers, and the broader community.

These claims not only lead to significant financial costs but also disrupt staff morale, productivity, and workplace harmony.


The Role of Leadership in Mitigating Risks

The culture set by senior management plays a critical role in how workplace mental health is prioritised. As highlighted by Professor Samuel Harvey of the Black Dog Institute, the attitudes and actions of an organisation’s leadership directly influence the well-being of employees. When mental health is taken seriously at the highest levels, it sets a precedent for the entire organisation to follow, fostering a supportive and proactive work environment.


Common Causes of Psychological Claims

Psychological injuries in the workplace often stem from several risk factors:

  • Poorly Managed Workplaces: Lack of structure, guidance, and support can create environments where stress is prevalent.

  • Traumatic Events: Exposure to violence, accidents, or other distressing incidents can have long-lasting psychological effects.

  • Occupational Uncertainty: Job insecurity or unclear career paths contribute to anxiety and stress.

  • Lack of Value and Respect: Employees who feel undervalued are more likely to experience mental health issues.

  • Workplace Violence and Harassment: These behaviors create toxic environments, leading to both physical and psychological harm.

  • Excessive Work Demands: Long hours, high pressure, and unrealistic expectations are major contributors to burnout and stress-related illnesses.


The Impact on Businesses and Employees

The effects of psychological injuries are far-reaching. Businesses may experience high rates of absenteeism, increased staff turnover, and diminished work quality. Employees suffering from psychological injuries are more likely to experience depression, anxiety, and increased workplace conflict, all of which can further elevate company costs through rising insurance premiums and compensation claims.


Proactive Risk Assessment and Management


Identifying and mitigating workplace risk factors is essential in preventing psychological injuries. Key risk factors include:

  • Excessive Demands: Unmanageable workloads and high-pressure environments lead to chronic stress.

  • Limited Control: Employees with little autonomy in their roles often feel powerless, exacerbating feelings of stress and dissatisfaction.

  • Poor Workplace Relationships: Interpersonal conflicts or a lack of support from colleagues can increase stress and reduce job satisfaction.

  • Unclear Roles and Responsibilities: Confusion and ambiguity in job roles lead to frustration and stress.

  • Ineffective Change Management: Poorly managed organisational changes can create uncertainty and anxiety.

  • Lack of Recognition: Employees who feel their efforts are not acknowledged are more likely to disengage and experience stress.

  • Inadequate Organisational Justice: Perceptions of unfair treatment or biased decision-making processes can erode trust and contribute to psychological distress.


Moving Beyond Policies to Implementation

While many organisations have policies in place to address workplace psychological injuries, effective implementation is often lacking. A significant issue raised by affected employees is the disconnect between policy and practice. Policies that are perceived as mere formalities, rather than meaningful actions, fail to provide the necessary support to those in need.


One of the most critical steps employers can take is to actively listen to their employees. When workers feel heard and supported, they are less likely to experience prolonged psychological distress. Early intervention and consistent follow-up are key to ensuring that employees feel valued and understood.


The Importance of Genuine Concern and Support

A proactive approach to managing psychological injuries involves more than just offering Employee Assistance Programs (EAPs) or mental health days. It requires genuine concern and a commitment to addressing the root causes of stress and mental health issues in the workplace. Employers must prioritse open communication, provide adequate resources, and take swift action when issues are raised.


In cases of long-term issues like bullying or harassment, it is crucial for management to focus on resolving the problem rather than simply protecting the company’s interests. By showing genuine care and taking meaningful action, employers can significantly reduce the duration and impact of psychological claims.


Conclusion

While not all psychological claims can be prevented, many can be mitigated through effective people management and organisational support. By fostering a culture of respect, open communication, and genuine concern, employers can create a healthier, more productive workplace where employees feel valued and supported.


At VitalShield Health and Safety, we specialise in helping businesses develop and implement effective strategies to manage workplace psychological risks. Our expert team can provide the guidance and tools you need to protect your workforce and promote a positive workplace culture. Contact us today to learn how we can support your organisation in creating a safer, healthier work environment.

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