For decades, workplace health and safety has focused primarily on physical risks. Slips, trips and manual handling have long dominated organisational priorities. Now, however, organisations are recognising that some of the greatest risks to employee wellbeing, and business performance, are psychological.

Known as psychosocial risks, they arise from the way work is designed, managed and experienced. Excessive workloads, poor communication, bullying, ineffective leadership, lack of role clarity and poorly managed organisational change can all have a significant impact on people’s health and wellbeing.

The scale of the challenge is considerable. According to the International Labour Organisation, more than 840,000 people die each year from health conditions linked to psychosocial risks.[i] Alongside the potential harm to an individual’s mental and physical health, organisations also face reduced productivity, increased absence, higher staff turnover, grievances, disciplinary issues, employment Tribunal claims and reputational damage.

Research highlighted by Harvard Business Review also found that excessive workplace stress can contribute to a 50% increase in voluntary turnover, creating significant recruitment, training and productivity costs.[ii]

These are not simply people issues. They are business risks.

It’s therefore no surprise that expectations are changing. The Health and Safety Executive increasingly expects employers to assess psychosocial risks alongside physical health and safety risks, while ISO 45003 provides an internationally recognised framework for managing psychological health and safety at work.

Prevention is better than cure

Many organisations first contact Loch once a workplace issue has escalated. A grievance has been raised, an employee has gone off sick or a manager is struggling to address difficult behaviour. By that point, the priority is understandably to resolve the immediate issue.

The bigger question, however, is whether it could have been prevented.

Managing psychosocial risks isn’t about adding another checklist to a risk assessment. It requires organisations to step back and consider whether aspects of leadership, management or culture are creating the conditions for workplace stress and conflict.

That means asking questions such as:

  • Are managers equipped to have difficult conversations?
  • Are concerns identified and addressed early?
  • Do employees understand what is expected of them?
  • Is organisational change communicated well?
  • Do people feel safe to speak up?

These questions move organisations beyond treating individual issues and towards identifying the underlying causes of risk.

Legal compliance and beyond

The law provides an important framework. It requires employers to manage workplace issues fairly and creates significant legal consequences where they fail to do so. Poorly managed bullying complaints, for example, can lead to constructive unfair dismissal claims, while failures to respond appropriately to workplace stress may expose organisations to personal injury claims.

Legal compliance is only part of the picture, however. Policies and procedures provide consistency, but they do not create healthy workplaces on their own. Culture is shaped by what managers do every day. Managers therefore have a significant role to play in creating a positive psychosocial working environment.

Effective managers make the difference

Research consistently shows that managers have one of the greatest influences on an employee’s experience at work. According to CIPD research, 88% of employees who work with highly rated line mangers report high job satisfaction.[iii]

Managers who communicate clearly, provide constructive feedback, address issues early and create psychological safety help build healthier, more productive workplaces. Conversely, managers who avoid difficult conversations or lack confidence in handling people issues can unintentionally increase stress and conflict.

It’s a theme we see repeatedly across Loch’s 360 degree feedback programmes and employee listening exercises. The challenge is rarely a lack of commitment. More often, managers need greater confidence, clearer guidance and practical people management skills.Learn more about how to deliver effective 360 degree feedback programmes.

Good management isn’t an innate ability, it’s a skill that can be developed. Investment in management development delivers benefits beyond leadership capability alone. Coaching, training and honest feedback help managers identify issues earlier, manage performance effectively and create more positive team environments.

Connecting every angle

Managing psychosocial risks effectively means acting proactively, rather than waiting until problems arise. Organisations should connect legal compliance, leadership capability, people strategy and organisational culture, rather than considering each area in isolation. Looking at these areas separately risks addressing only part of the problem.

A joined up approach helps organisations identify risks earlier, strengthen decision making and create healthier workplaces. It also enables them to reduce legal and people risk, improve performance, build a stronger culture and create environments where both people and businesses can thrive.

In practice, this means acting early, looking for the underlying causes of risk and taking a holistic view of how the workplace is designed, managed and experienced.

This is where Loch supports organisations. Whether we’re advising on an employment dispute, supporting a complex HR issue, helping organisations understand wider cultural risks or developing managers’ ability to identify signs of distress, our focus is the same: providing joined up legal, HR and strategic support that helps organisations make confident decisions and build more resilient workplaces.

Want to take a more proactive approach to managing psychosocial risks? Get in touch to find out how we can support your business.

[i] https://www.ilo.org/resource/news/840000-deaths-year-linked-psychosocial-risks-work

[ii] https://hbr.org/2015/12/proof-that-positive-work-cultures-are-more-productive

[iii] https://www.peoplemanagement.co.uk/article/1821838/half-employees-poor-managers-say-work-negatively-impacts-mental-health-research-finds