It’s time to stop treating mental health and physical safety as separate issues!
The truth is, psychological wellbeing has a direct impact on workplace safety, from decision-making and hazard perception to team communication and risk-taking behaviour. And with Safe Work Australia now recognising psychosocial hazards as a key safety concern, businesses can no longer afford to treat mental health as “just an HR problem.”
At Dowell Solutions, we’ve spent over a decade working directly with Australian businesses on both WHS and HR challenges and we’re seeing more and more overlap between mental health concerns and physical safety risks every year.
In fact, it’s come to the point where HR and Safety must work together to protect staff and meet legal obligations.
What This Blog Covers
Why mental health is a workplace safety issue
Common psychosocial hazards affecting Aussie workplaces
The business risks of ignoring mental wellbeing
Practical steps to address mental health and improve safety outcomes
How HR and WHS teams can collaborate effectively
Mental Health Is a Safety Risk – Here's Why
Mental health affects everything from focus and reaction time to how someone perceives risk. When a worker is overwhelmed, anxious or burnt out, they’re more likely to make mistakes, skip steps, or misjudge a situation.
Some of the most common impacts include:
Increased incidents and near misses
Higher absenteeism
Tension and miscommunication on site
Lower morale and engagement
Reduced hazard reporting
When these signs go unnoticed or unmanaged, it puts everyone at risk.
What is the connection between mental health and workplace safety?
Mental health directly impacts workplace safety.
Poor mental wellbeing can lead to fatigue, distraction, and poor decision-making, increasing the risk of incidents. That’s why psychosocial hazards, like stress and poor support, are now recognised under WHS laws in Australia
When someone’s mentally struggling, it doesn’t just affect how they feel, it affects how they work. Here’s how:
- Fatigue or burnout slows reaction times and concentration
- Stress or anxiety leads to distraction, forgetfulness, and quick decisions
- Low morale or disengagement can cause staff to ignore safety procedures
- Poor communication or conflict increases the risk of mistakes and misunderstandings
Psychosocial Hazards, The New Safety Frontier
As of 2022–2023, all states and territories in Australia (including NSW) have implemented or are moving to implement regulations around psychosocial hazards.
These include:
High job demands
Low job control
Poor support
Bullying or harassment
Unclear roles or poor change management
These are now recognised safety risks under WHS legislation — and must be treated like any other hazard.
Need help getting started?
Check out People at Work a free, evidence-based tool supported by Safe Work Australia that helps you identify and assess psychosocial risks in your workplace.
The Real Cost of Ignoring Mental Wellbeing
Aside from the human toll, failing to address mental health at work can lead to:
Higher workers compensation claims
(Read how this affects your premiums)Lost productivity and increased turnover
Safety breaches and non-compliance with WHS laws
A culture where employees don’t feel safe to speak up
When workers feel unsupported, safety conversations shut down and that’s a risk no business can afford.
HR and Safety Are Stronger Together
For too long, HR and WHS have worked in silos. But mental health issues don’t fit neatly into either category. It’s time for a more joined-up approach, where:
HR supports managers with training and communication tools
WHS teams include psychosocial risks in hazard assessments
Strategies are shared across teams to support early intervention
Policies reflect both physical and psychological safety
Together, HR and Safety can build a safer, more supportive culture.
“Your safety team can’t pour from an empty cup.”
What You Can Do Now - Practical Steps
Here’s how small to medium businesses can start making real progress:
1. Include Mental Health in Risk Assessments
Treat psychosocial hazards like any other workplace risk. Use the identify–assess–control–review framework or start with a free tool like People at Work to guide you.
2. Train Leaders in Psychosocial Risk Awareness
Give supervisors the tools to spot signs of mental strain and respond appropriately.
3. Check Your Consultation Process
Are mental health concerns being heard? WHS Committees and HSRs should be part of the solution.
Here’s how to develop a WHS Committee that supports safety culture.
4. Update Policies to Reflect Psychosocial Hazards
Make sure your documentation addresses workload, support, and respectful behaviours.
5. Provide Access to Support
You don’t need expensive programs. A mental health contact list or resource sheet is a strong first step.
Quick Win
Do a Walkaround With “Mental Safety Glasses” On
Take 5 minutes to walk through your workspace and ask yourself
“Would someone under stress or fatigue safely manage this task, space or process?”
This mindset shift can reveal hidden risks, like unclear signage, noisy environments, or unrealistic timeframes that might not register during a standard physical hazard check.
Let’s Make Mentally Healthy Workplaces the New Normal
Mental health is no longer a “nice to have.” It’s a core part of keeping people safe and businesses compliant.
Mental health and workplace safety are two sides of the same coin. When we support people to be mentally well, we create safer, more connected, and more productive workplaces, without needing to throw money at it or reinvent the wheel.
Start small. Lead by example. And know that every conversation counts.
Ready to take the first step?
Download my free Psychosocial Hazard Checklist and see where your workplace stands.
Because when you look after your people, they’ll look after your business.
ABOUT THE Author - Kylie Dowell
Kylie Dowell is a seasoned WHS consultant, trainer, and safety advocate with over 25 years of experience helping Australian businesses create safer, compliant workplaces.
Through her partnership with TEAMS, an accredited Registered Training Organisation, Kylie delivers a wide range of training up to Advanced Diploma level, empowering businesses with the knowledge and skills to manage safety effectively.
As an approved trainer for Health and Safety Representative (HSR) courses by three Safety Regulators, Kylie has guided countless organisations in building stronger safety cultures and fostering healthier work environments.
Specialising in practical and effective safety solutions, she works closely with small and medium-sized businesses to simplify complex WHS requirements, making safety approachable and achievable.
When she’s not delivering high-quality training or conducting ISO 45001-certified audits, Kylie enjoys collaborating with her clients to design tailored workshops and strategies that suit their unique needs.
Ready to make safety simpler? Get in touch with Kylie today for personalised support.