A guide to preventing psychosocial hazards and burnout

Managing psychosocial hazards will be key for organisations in 2026 and beyond.

These days, I hear leaders drop the term psychosocial hazard almost as often as burnout. And with equal trepidation in their voice. Both terms have been something of a bugbear for employers in Australia recently, with pressure increasing to meaningfully mitigate psychosocial hazards through regulation, while the burnout epidemic rages on.

And as workplace regulations regarding psychosocial risk mitigation are implemented around the country — Victoria being the last state to do so, with regulations taking effect on 1 December this year — discussions are tense. Leaders are nervous. 

Many leaders I speak with are worried. "We’re required to manage workplace mental health risks with the same level of diligence as physical risks. What does this look like?"

Today let’s explore (1) the impact of the new regulations, (2) the difference between mitigating physical and psychosocial risk , and (3) how stress management and burnout prevention programming directly contribute to meeting these new regulatory requirements.

The new regulations on psychosocial hazards in a nutshell

Like other Aussie states before it, the Victorian Government is introducing new workplace regulations that specifically address psychosocial hazards — factors in the workplace that can negatively impact workers’ mental health and wellbeing. The aim is to address the rising incidence of work-related mental injuries, which made up 18% of all new WorkCover claims in Victoria in 2023–24. And this figure is likely to rise if psychosocial hazards are not acknowledged, identified and preventatively addressed.

Here’s a snapshot of what the regulations entail:

• Behavioural factors: Employers must proactively identify, assess, and control behavioural psychosocial hazards such as bullying, harassment and workplace violence.

• Systemic factors: Employers need to mitigate risks in relation to leadership and systemic factors such as low job control, high job demands, low role clarity, poor organisational change management, poor supervisor support and more. These are the kinds of factors which can also cause the chronic stress that leads to burnout.

• Risk Management: Employers are required to eliminate or reduce psychosocial risks wherever possible and review control measures at specified intervals.

• Prevention Plans: In some sectors, written prevention plans may be required for specific hazards, including aggression, workplace bullying, high job demands, sexual harassment, and exposure to trauma.

• Reporting Requirements: Employers (especially those with 50 or more employees) may need to report psychosocial complaints to WorkSafe Victoria.

• Legal Risks: Non-compliance with the new regulations may result in significant penalties, as seen in recent prosecutions where employers were fined for failing to address psychosocial hazards. For example, in 2023, an employer was fined $380,000 after a court found that a “deadly” work culture contributed to an employee’s suicide, and that the psychosocial hazards underpinning that culture had not been adequately addressed by the employer. This was the maximum penalty available at the time and the judge indicated if they could have applied a higher penalty they would have.  We can expect these penalties to soar into the millions in the future.

These new regulations are significant obligations on employers — and they require leaders to have a mindset shift when it comes to mitigating preventing and mitigating psychosocial risks. Why might that be?

Why the regulations require a mindset shift for employers

The new psychosocial hazard regulations require a mindset shift for leaders, particularly those in sectors with a traditional approach to occupational health and safety. That's because complying with the psychosocial hazard regulations demands a fundamentally different approach to workplace safety compared to traditional physical hazard mitigation. Here are a few reasons why this mindset shift is required (and a handy diagram below, feel welcome to download / share).

• Equal Importance of Psychological and Physical Safety The regulations place psychosocial hazards — such as bullying, harassment, and work-related stress — on the same footing as physical hazards. This means employers must give mental health the same level of attention and resources as they do to preventing physical injuries, despite the cultural stigmas around mental health and stress that persist in many workplaces — not to mention broader Australian society.

• Complexity and Subjectivity Psychosocial hazards are often less visible and more subjective than physical risks. They can stem from workplace culture, job demands, interpersonal interactions, or organizational systems, making them harder to identify and measure. Unlike physical hazards, which can be assessed with tools and safety standards, psychosocial risks require ongoing dialogue, empathy, and cultural awareness.

• Leadership and Communication Skills Addressing psychosocial hazards requires leaders to develop new skills, such as having sensitive performance conversations, fostering open communication, and creating psychologically safe environments. This is a shift from the more technical and procedural focus typical of physical hazard management.

• Preventative and Proactive Approach The regulations emphasize proactive risk management, encouraging employers to identify and control psychosocial hazards before harm occurs. This requires a mindset that prioritises prevention and continuous improvement, rather than simply reacting to incidents after they happen.

• Consultation and Flexibility Employers are expected to consult with employees to determine the most effective control measures for their specific workplace, allowing for flexibility and adaptation as circumstances change. This collaborative approach is less common in physical hazard management, which often relies on standardised solutions.

Differences between physical and psychosocial risks and hazards at work.

How stress management and burnout prevention programming can help

Stress management and burnout prevention programming can play a crucial role in reducing psychosocial hazards in the workplace. By providing people with a common understanding and language around the root causes of stress, you foster an environment that supports mental health and wellbeing. And in particular, reduce the stress-related psychosocial risks, both behavioural and structural.

Here are a few examples of what stress management and burnout prevention programming can mean for your workplace.

• Identification and Mitigation of Psychosocial Risks: In this kind of programming, you explore some of the deeper drivers of stress in the workplace which might not be visible from employee engagement surveys. By understanding and identifying these drivers, teams can work together to address them.

• Reduction of Chronic Stress and Burnout: We can’t completely eradicate stress from work – and we shouldn't aim to. However, stress management programs which focus on empowering individuals with practical tools for coping with stressful situations, have been shown to reduce distress, anxiety, and daily hassles, and to increase assertiveness and satisfaction with social support. This helps prevent the escalation of stress into chronic conditions such as complete burnout.

• Promotion of Boundaries, Healthy Behaviours and Supportive Environments: Burnout prevention strategies emphasize ensuring clear expectations, social support, and recognition of people’s efforts. These measures help team members manage multiple responsibilities and reduce the risk of role conflict or overload, both of which are central psychosocial hazards. My programs, for example, unpack the 3-Selfs Framework which helps individuals identify and implement strategies to ensure wellbeing and healthy boundaries.

• Enhancement of Organisational Culture: By fostering open communication, trust, and collaboration, these programs help create a psychologically safe workplace. Leaders who understand and model self-care give implicit permission for others to do the same. This alignment of values with behaviour is essential fostering a healthful culture where employees feel that they are not just numbers.

• Continuous Improvement and Employee Engagement: Offering regular programs and deeper exploration of the skills and behaviours required to manage stress and prevent burnout ensure lasting change. For example, my programs delve into the B R N T Framework for burnout prevention, fostering positive, impactful conversations with a focus on fierce prioritisation of wellbeing to ensure a sustainable career — and a high performing workplace.

The smart way forward

Stress management and burnout prevention programs are essential tools for leaders aiming to reduce psychosocial hazards, strengthening a broader organisational approach to meeting these new regulatory requirements and creating an awesome place to work. 

By understanding and creating a common language around factors that contribute to stress and burnout — and what we can to prevent them — these programs help create safer, healthier, more attractive and more productive workplaces. 

Curious to learn more about what stress management and burnout prevention programs for your team or organisation? Would you like free resources about my frameworks or more info on my custom programs? Reach out.