Trends in Psychosocial Risk Management

2025 Trends in Psychosocial Risk Management

The Future of Workplace Well-being

Psychosocial risk management is no longer an emerging issue—it’s a core workplace priority. In 2025, organisations face increased regulatory scrutiny, evolving workforce expectations, and new risks driven by technology and globalisation.

In Australia, all harmonised jurisdictions have committed to regulations addressing psychosocial risk management. Given this was completed by September 2023, we expect Worksafe regulators from all states to become more active in psychosocial risk investigations and compliance enforcement moving forward.

This year, businesses must move beyond compliance to build mentally healthy workplaces that prevent harm, protect employees, and create long-term resilience. Here’s what’s shaping the future of psychosocial risk management and what organisations must prioritise to stay ahead.

1. Increased Regulatory Enforcement

Regulators worldwide are ramping up compliance measures, and organisations can no longer afford to treat psychosocial risks as secondary concerns.

In Australia, WorkSafe NSW’s 2024-2026 Psychological Health and Safety Strategy has placed a clear focus on industries where psychosocial risks are high—including healthcare, education, and public administration. Large employers (200+ staff) are already under increased scrutiny, with more audits and investigations expected. Read more on WorkSafe website.

Victoria is also set to introduce new Psychological Health Regulations in December 2025.

A Compliance Code will accompany the 2025 regulations, guiding employers in meeting their obligations. Additional government resources will help workplaces use prevention plans to identify and control psychosocial risks.

Background:

New regulations were first announced in May 2021.
Draft regulations were released for consultation in 2022.
The final 2025 regulations are yet to be published but will likely build on the draft version with consultation-based amendments.

Key Requirements in the Draft Regulations - employers must:

Identify psychosocial hazards.
Control and eliminate risks where practicable.
Review risk control measures when needed.
Develop written prevention plans for hazards like aggression, violence, bullying, traumatic content, high job demands, and sexual harassment. These plans must outline risks, control measures, implementation steps, and consultation processes.
Provide prevention plans upon request by a WorkSafe Victoria inspector.
Report certain psychosocial complaints to WorkSafe every six months.

The Government has indicated that the 2025 regulations are likely to be finalised in October 2025 and take effect on 1 December 2025.

What this means for organisations:

✔ Conduct comprehensive risk assessments

What are your main risk factors?
Do you have different risk factors for different worker profiles?
Have you consulted staff in a genuine manner?
Have you considered the impact of technology?
What is the interplay between your workforce demographics and psychosocial risk?
What risks are your ‘gig’ workers, contractors, casual staff, volunteers etc exposed to?

✔ Ensure preventative measures are in place

✔ Stay ahead of emerging compliance requirements

2. Legal Precedents: The Rise of High-Profile Court Cases

The legal landscape is shifting. In 2024, the Elisha v Vision Australia case resulted in a $1.4 million AUD payout after an employee suffered psychiatric injury due to a poorly handled termination process. The court cited contractual breaches, procedural unfairness, and a failure to intervene early.

Key learnings for all organisations:

Contractual breach - Ensure that employment contracts and workplace policies are clearly followed. Any processes for termination, misconduct investigations, or risk management outlined in a contract must be strictly adhered to.
Procedural fairness - Employees must be given a fair opportunity to respond to allegations or workplace concerns. A transparent, well-documented investigation process is critical to prevent claims of unfair treatment.
Early intervention - Workplace issues should be addressed proactively, not reactively. Managers must document concerns early, provide feedback, and engage employees in solutions before situations escalate into legal disputes.
Leadership training - Many legal risks arise because managers lack the skills to handle sensitive workplace issues effectively. Practical training in psychosocial risk management, difficult conversations, and procedural fairness is essential.

This case signals an era where poorly managed psychosocial risks can lead to significant financial and reputational consequences. We expect the number of claims and complaints due to poorly managed psychosocial risk to increase as employees become more aware of their rights and regulators take a firmer stance. We would also not be surprised to see an increase in legal action and high profile cases.

What this means for organisations:

✔ Ensure fair and well-documented HR processes

✔ Train leaders in early intervention strategies, , including psychosocial risk management and the skills needed to navigate difficult conversations. Leaders play a crucial role in identifying risks early, addressing concerns proactively, and fostering a psychologically safe workplace. We can help by providing targeted training and practical tools to equip managers with the confidence and skills to handle these challenges effectively.

✔ Strengthen managerial accountability in handling psychosocial risks

3. Technology: A Double-Edged Sword

The rapid integration of artificial intelligence (AI), automation, and workplace surveillance tools is reshaping the modern workplace. These advancements are driving significant changes across industries, influencing not only how tasks are performed but also the overall work environment and employee experience. While these technologies promise improved efficiency, cost savings, and enhanced safety, they also introduce new psychosocial risks that organisations must proactively address.

From a workplace health and safety perspective, the adoption of AI-driven automation and surveillance technologies has clear benefits. Many of these technologies have the potential to reduce or eliminate traditional physical risks associated with hazardous tasks.

For example, in industries such as construction, manufacturing, warehousing, and logistics, automation has significantly reduced the need for workers to engage in physically intensive, repetitive, or dangerous tasks.

Additionally, innovative safety control measures—such as using drones for workplace inspections, virtual reality (VR) simulators for training, and AI-powered risk detection systems—are improving overall workplace safety by identifying hazards before they result in harm.

While technology can improve efficiency and safety, its unintended consequences must be considered. Key risks include:

Increased cognitive load – As routine tasks are automated, employees handle more complex decision-making, leading to mental fatigue and stress, especially without proper training.
Stress and anxiety -Productivity tracking, AI monitoring, and wearable devices can create constant pressure, reduced trust, and fear of being watched, harming workplace morale.
Job insecurity -Automation in industries like manufacturing and administration fuels uncertainty and disengagement, as workers fear displacement.
Over-reliance on technology - Workers may trust automation over human judgment, leading to critical safety risks in high-stakes environments like transport, construction, and healthcare.

What this means for organisations:

✔ Assess how digital transformation affects employees’ psychological well-being

✔ Implement ethical AI and surveillance policies

✔ Involve employees in decision-making around new technologies

4. Breaking Silos: Integrating WHS and HR for Better Risk Management

Traditionally, HR has managed issues like workplace bullying, harassment, and misconduct, while WHS teams have focused on compliance and safety policies. In 2025, organisations must break down these silos and adopt a unified approach to psychosocial risk management.

A disconnect between HR and WHS often leads to delays in risk identification, poor communication, and inconsistencies in handling complaints. This can increase legal risks and erode trust within the workplace.

What this means for organisations:

✔ Align reporting and investigation processes across HR and WHS

✔ Develop a clear strategy for managing psychosocial complaints

✔ Foster cross-functional collaboration to create safer workplaces

5. Evolving Workforce Demographics: Managing New Challenges

The composition of the workforce is changing, bringing new psychosocial risks that require adaptive management strategies.

Key demographic shifts include:

An ageing workforce: By 2050, 22% of workers will be over 60, increasing the need for awareness of age-related risk factors. For example, an aging workforce has a higher likelihood of suffering from chronic illness which might impact its perception of workplace stressors.
Cross-generational teams: Up to five generations might be now working in the same teams, often with conflicting communication styles and workplace expectations
Global and remote workforces: More teams are working across multiple time zones, leading to disrupted work-life balance and higher cognitive load
The rise of hybrid work: While employees value flexibility, isolation and digital fatigue remain significant risks

What this means for organisations:

✔ Develop multi-generational leadership training

✔ Implement well-being initiatives for remote and hybrid teams

✔ Ensure psychosocial risks are addressed across all worker demographics

6. The Gig Economy: Addressing Risks for Non-Traditional Workers

The rise of freelancers, contractors, and gig workers presents new challenges for psychosocial risk management. Job insecurity, unpredictable workloads, and lack of workplace protections put these workers at greater risk of stress and burnout.

Although employers may not have traditional obligations to gig workers, regulators are increasingly holding organisations accountable for their contractors' well-being.

What this means for organisations:

✔ Acknowledge duty of care obligations for contractors and freelancers

✔ Provide access to mental health resources

✔ Implement fair and sustainable workload management

7. Leadership Training: The Key to Preventing Psychosocial Harm

Managers play a crucial role in ensuring compliance with psychosocial regulations and having an engaged workforce. Many managers struggle to recognise psychosocial risks, navigate difficult conversations, and apply effective controls—resulting in unnecessary disputes, claims, and disengagement.

Training managers to identify and control psychosocial hazards should be on every organisation's agenda. We recommend choosing training that is practical, bespoke to your context and targeted at developing skills. If you would like to know more about our training in this area, contact us.

What this means for organisations:

✔ Invest in leadership training in psychosocial risk

✔ Focus on conflict resolution, communication, and procedural fairness

✔ Embed a culture of psychological health and safety from the top down

8. A Global Shift: Mental Health at Work as a Worldwide Priority

Mental health is no longer just a workplace concern—it’s a global policy focus. The World Health Organization (2019) estimated that:

15% of working-age adults experience a mental health disorder
12 billion workdays are lost annually due to mental health issues, costing $1 trillion USD in lost productivity

More countries are implementing legal frameworks for mental health and psychosocial risk management, including Belgium, Sweden, Mexico, Chile, Canada, and Japan. The ISO 45003 standard on psychosocial risk management continues to gain traction internationally.

What this means for organisations:

✔ Align policies with international standards and best practices

✔ Stay informed on global trends in mental health regulation

✔ Recognise that workplace mental health is a competitive advantage

Key Priorities for 2025

✅ 1. Strengthen Psychosocial Risk Identification and Management

Conduct regular risk assessments
Consult employees to identify emerging risks
Address risks before they escalate

✅ 2. Harmonise WHS and HR Approaches

Break down silos between departments
Streamline risk reporting and response systems

✅ 3. Invest in Leadership Training

Equip managers with practical skills for psychosocial risk management
Ensure early intervention strategies are in place

✅ 4. Stay on Top of Compliance Changes

Monitor legislation and case law updates
Adapt policies to meet evolving legal requirements

For more details, please watch the recording of the live webinar below:

Message from Georgi

If you would like to explore opportunities to work together, book a 15-min chat below.

Some of the topics we can talk about include:

Psychosocial hazards Audit for your organisation
The Manager’s Toolkit: psychosocial risk management
Psychological Health and Safety for Staff
A sustainable wellbeing strategy for your organisation
Wellbeing Training for your organisation

About Dr. Georgi Toma

Georgi is an expert in stress, burnout and workplace mental health.

She is the founder of Heart & Brain Works. She also conducts research at the University of Auckland.

She is the creator of the Wellbeing Protocol, the only scientifically validated training to reduce burnout and improve mental wellbeing at work, in NZ and AU.

Research evidence shows the Wellbeing Protocol helps employees:

reduce stress by up to 58%
reduce burnout by up to 60%
improve metal wellbeing by up to 103%.

Join our Upcoming Training

Psychosocial Risk Management Made Simple

Using Work Design in Psychosocial Risk Management

We run free professional development sessions like this once a month.

Subscribe below to be notified about future sessions.

Message from Georgi

If you would like to explore opportunities to work together, book a chat below. This is not a sales call. This is a 15-min chat to see if I can help or not.

Some of the topics we can talk about include:

Psychosocial hazards and mental wellbeing audit
The Wellbeing Protocol
How to create an effective and sustainable wellbeing strategy
Leader training
Culture of civility, respect and high performance intervention
A sustainable wellbeing strategy for your organisation

About Dr. Georgi Toma

Georgi is an expert in stress, burnout and workplace mental health.

She is the founder of Heart & Brain Works. She also conducts research at the University of Auckland.

She is the creator of the Wellbeing Protocol, the only scientifically validated training to reduce burnout and improve mental wellbeing at work, in NZ and AU.

Research evidence shows the Wellbeing Protocol helps employees:

reduce stress by up to 58%
reduce burnout by up to 60%
improve metal wellbeing by up to 103%.

Join our Upcoming Training

Psychosocial Risk Management Made Simple

Paid Training