Workplace Wellbeing: Why It Matters & The Role of Psychosocial Safety
By Isabelle Frischknecht (Consultant) & Evelyn Jackson (CEO)
In today’s evolving work environment, workplace wellbeing is not just a moral responsibility but also a strategic imperative. When we talk about workplace wellbeing, what exactly do we mean? Dr Chanvi Singh, Organisational Psychology Research Fellow, defines workplace wellbeing as:
“a holistic approach to creating an environment where employees can thrive both personally and professionally.”
Why is wellbeing at work important?
A workplace that prioritises employee wellbeing fosters a positive and productive environment where employees feel valued and motivated. In fact, this research found that being part of a mentally healthy workplace was the second most important factor in an employee’s decision to accept a new position, only after their salary.
Despite its importance, workplace wellbeing is often overlooked by many organisations. This oversight can have a significant impact on an organisation and its people - including increased absenteeism, burnout, high turnover rates, and declining productivity.
Ignoring workplace wellbeing doesn’t just cost your people, it can also have a significant impact on the profitability of your organisation. Research from Black Dog Institute estimates that mental health conditions cost Australian businesses an enormous $11b per year.
The role of psychosocial safety
Psychosocial safety recognises the growing cognitive demands placed on employees and is a significant contributor to wellbeing in the workplace and employee mental health.
Psychosocial risks in the workplace include:
High job demands
Limited control
Poor support from management
Left unchecked, these factors can lead to chronic stress, burnout, and other serious mental health conditions, negatively impacting not only your people but the whole organisation.
Employers have a duty to mitigate these psychosocial risks that threaten the physical and mental health of employees. In Australia, employers not only have a duty of care but are legally required to eliminate, and if not possible, to minimise harm as far as reasonably practicable under the Work Health and Safety Act 2011 and recent April 2023 regulations. To ensure compliance, employers must utilise the hierarchy of controls outlined in the Model WHS Regulations, a method for systematically managing psychosocial hazards.
A workplace committed to psychosocial safety is also more likely to have collaborative, engaged employees who trust the business they work for.
Employees who strongly believe their employer cares about their overall wellbeing are three times more likely to be engaged at work than those who don’t. – Gallup 2023
How can you improve wellbeing?
Understanding the core elements of workplace wellbeing, such as managing stress, fostering open communication, offering flexibility, recognising contributions, and aligning individual and organisational values, is essential for creating a supportive and productive work environment.
Consider your workplace: How does it currently measure up? What areas could benefit from a stronger focus on wellbeing?
Wellbeing isn’t just about meeting basic needs - it encompasses a broad spectrum of human experiences within the workplace. The Seven Levels of Consciousness© framework by the Barrett Values Centre helps organisations understand and address these needs, from the foundational levels of physical security and relationship-building to higher-order needs like autonomy, self-expression, and contributing to a greater purpose.
By assessing and fulfilling these diverse needs, organisations can foster a thriving, high-performing workforce.
Workplace wellbeing is not just a trendy new phrase
In summary, workplace wellbeing is a vital component of organisational success, affecting everything from employee mental health to overall productivity. As the modern work environment evolves, the importance of fostering a healthy and supportive workplace has never been more apparent.
Addressing psychosocial risks, complying with updated legislation, and embedding wellbeing into an organisation’s culture, systems and policies are all critical steps in creating a positive workplace that is embraced by employees. By prioritising the wellbeing of your people, businesses can not only improve employee satisfaction but also drive long-term sustainability and growth.
How Corporate Crayon Can Help
At Corporate Crayon, we help organisations and leaders build thriving, resilient workforces and high-performing cultures.
Our Workplace Wellbeing Masterclass helps equip and empower leaders with the knowledge and tools to create and sustain a workplace that prioritises employee wellbeing and effectively manages psychosocial safety in today’s workplace.
Our Workplace Wellbeing Assessment and expertise provide actionable insights and strategies to measure and improve employee wellbeing and organisational culture.
Contact us today for help to transform wellbeing in your workplace.