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Lead Believe Create with Susan Dunlop

Part 1:  Understanding the Code of Practice for Psychosocial Risk Management – A Guide for Business Leaders

As a business leader, it’s crucial to understand your responsibilities under the Code of Practice for Psychosocial Risk Management, which aims to address workplace factors that can harm employees’ mental health. Below is a simple guide to what you need to know:

What is the Code of Practice?

Safe Work Australia’s Code of Practice for Psychosocial Risk Management provides guidelines for employers to identify, assess, and manage psychosocial risks in the workplace. These risks include factors such as stress, bullying, harassment, job demands, and poor support, which can lead to mental health issues like anxiety, depression, and burnout.

Under Australian law, employers must ensure their employees’ health and safety, including their mental well-being. The Code provides a framework to help you meet these obligations. If a psychosocial risk leads to an employee’s injury or illness, your business could be held liable, making it important to address these risks proactively.

Identifying Psychosocial Hazards

Psychosocial hazards are factors in the work environment that have the potential to cause psychological harm. These include:

  • Job demands (eg. high workloads, unrealistic deadlines)
  • Lack of role clarity (unclear job expectations or responsibilities)
  • Low job control (lack of autonomy or decision-making power)
  • Poor support (lack of manager or colleague support)
  • Poor workplace relationships (eg. bullying, harassment)
  • Assessing Risks

You need to regularly assess and identify any psychosocial hazards within your workplace. This can be done through:

  • Surveys or feedback from employees
  • Workplace observations to spot signs of stress or conflict
  • One-on-one discussions with staff to gauge wellbeing and identify any challenges.
  • Managing Psychosocial Risks

Once risks are identified, you must take action to control or eliminate them. Here’s how:

  • Review workloads to ensure employees aren’t overwhelmed.
  • Clarify roles and responsibilities to avoid confusion.
  • Provide support and training to managers, so they can effectively address mental health issues.
  • Implement policies that promote respect, inclusiveness, and open communication in the workplace.
  • Promote work-life balance by offering flexible working arrangements where possible.

Engagement with Employees

Involve your employees in identifying and managing psychosocial risks. They can offer valuable insights into the challenges they face and contribute to finding solutions. Encouraging open communication and feedback creates a safer, more supportive work environment.

Reviewing and Monitoring

It’s not enough to just assess and manage risks once. You need to:

  • Monitor the effectiveness of your actions regularly.
  • Review policies and procedures every 6-12 months to ensure they’re up to date and effective.
  • Modify action plans as needed based on feedback and changes in the workplace.

Creating a Culture of Wellbeing

Beyond compliance, aim to build a workplace culture that supports wellbeing and engagement. This includes:

  • Offering regular recognition and feedback.
  • Creating opportunities for growth and development.
  • Ensuring your leadership is aligned with TED*® and 3VQ® principles, fostering an empowered and positive workplace culture.

Key Takeaways for Business Leaders:

  • Understand the types of psychosocial hazards in your workplace.
  • Identify and assess risks to your employees’ mental health.
  • Proactively manage risks with clear policies, support systems, and open communication.
  • Monitor and review actions regularly to ensure your employees are thriving.
  • Go beyond compliance and aim to create a culture of engagement, wellbeing, and personal empowerment.

By implementing these strategies, you not only comply with the Code of Practice but also foster a positive, thriving workplace that benefits both your employees and your business.

Are you ready to make a shift in how your team operates? Begin with small steps: engage in a 5-Step Action Planning Consult with me, encourage open dialogue, and embrace the empowering roles of Creator, Coach, and Challenger in your daily work. Lead the way for your team by becoming a role model for change.

To dive deeper into these concepts and start integrating TED* and 3VQ into your organisation, contact me for personalised coaching, workshops, and resources that will help you create the thriving culture your team deserves.

Ready to get started? Contact me today, and let’s discuss how we can build a better, more empowered organisation together!

Next: Part 2 – Company Directors – What Are Your Responsibilities and Risks Under the Code of Practice for Psychosocial Risk Management?

As a leader, you are not only responsible for guiding your team but also ensuring that your company complies with legal frameworks that safeguard your employees’ wellbeing. But what if you also wear the hat of a company director or if you report to a board that expects you to manage risks effectively? How does your leadership role intersect with your responsibilities under the Code of Practice for Psychosocial Risk Management?

In part 2 of our series, we’ll explore the specific responsibilities and risks company directors face when it comes to compliance with this code. Whether you’re a business leader also acting as a director or part of a larger organisation with a board, understanding your legal obligations is crucial for protecting both your employees and your company from risks that could have far-reaching consequences.

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