Preventing Workplace Psychological Injury: A Business Imperative for CEOs

Imagine arriving at work each day with a sense of dread - your neck and shoulders tense, your stomach tightens, and your heart races as soon as you enter the office due to the demanding workload, or the fear of making mistakes in a workplace culture that treats psychological safety as an afterthought -  where vulnerability is perceived as weakness, and the feeling that asking for help, labels you as incompetent.

For too many employees, this an everyday reality that leaves them feeling anxious, and over time, this daily experience leads to psychological issues.

So, what is workplace psychological injury?

In NSW workers' compensation law, it is defined as a “mental or emotional harm caused by work-related events or conditions. This harm can manifest as symptoms like depression, anxiety, PTSD, and other mental health conditions, significantly affecting a worker's ability to perform their job and live their life. “

Psychological workplace injury isn’t just a legal definition, it’s a lived, human experience that’s costing your company, and more importantly, your employees, more than you realise. When employees suffer, so does innovation, productivity, and your organisation’s reputation – staff morale erodes, turnover increases and burnout occurs.

Psychological injury is not a sign of personal employee weaknesses - it’s a predictable outcome of a workplace culture where relentless pressure, lack of support, and poor communication are the norm – a culture that fails to prioritise staff mental health and well-being.

The Cost of Workplace Psychological Injuries

According to a recent Ministerial Release:

·        Psychological injury claims have doubled in the past 6-years

·        Account for 12% of all WC claims, but represent 38% of total costs, with average claim costing $288,542

• Mental health issues cost Australian economy $39 billion annually in lost participation and productivity

SafeWork Australia’s recent report reveals a 36.9% increase in work-related mental health conditions since 2017-18, confirming that mental health in the workplace is not only a growing challenge but an urgent priority. 

While, Allianz's whitepaper, highlights the enduring stigma associated with workplace mental ill-health, and the need for employers to adopt a holistic approach that places the employee at the centre of the mental well-being equation, ensuring they have the support they need.

In addition, a white paper by the Black Dog Institute, states; “Workplace mental health is an emerging public health crisis and requires immediate attention from both industry and policymakers. There is an urgent need for Australian businesses and governments to act in response to these trends to protect the mental health of our workers — now and for the future.”

Since 2022, Australian employers have a legal duty to provide psychologically safe workplaces. This includes promoting environments where employees feel safe to disclose mental health challenges without fear of judgment or discrimination—and ensuring managers are equipped to respond effectively. 

NSW Work Health and Safety Minister, Sophie Cotsis, says it is a “fundamental right of every worker to go home in a physically and mentally healthy state, and that it costs businesses and the state when a workplace was unsafe”.

To support this, SafeWork NSW’s four-year plan is cracking down on non-compliance, including prosecuting businesses that fail to protect workers’ mental health. CEOs can no longer afford to be complacent.

Root Causes of Workplace Psychosocial Hazards

Common culprits include:

·        Excessive workload and unrealistic deadlines

·        Poor communication and lack of support from management

·        Workplace bullying or harassment

·        Lack of role clarity

·        Low job demands and job support

·        High job insecurity

·        Poor work-life balance

·        Minimal control over work processes

·        Poor organisational management and justice

• Inadequate reward and recognition

Unchecked, these psychosocial hazards manifest in employee:

·        Anxiety, depression, and PTSD

·        Increased absenteeism

·        Declining productivity and engagement

• Higher turnover and legal liability

The Business Case for Action

Psychological injury isn’t just a health and safety issue - it’s a leadership issue.

As the CEO, you hold the power to transform your workplace. The question is: Will you make the changes necessary, or let your workforce and business suffer?

·        Model healthy boundaries—your actions set the tone for your organisation

·        Prioritise psychological safety—create a culture where speaking up is welcomed, not punished

·        Invest in mental health support—treat it as a business investment, not a luxury

·        Develop comprehensive mental health policies—and back them with training and resources

·        Train your leaders—equip them to identify and manage employee psychosocial risks early

·        Embrace flexibility—recognise the diverse needs of your people

·        Champion open communication—because respect and trust are non-negotiable

·        Create a culture of acceptance and compassion

Your people are your greatest asset. Protecting their mental health is not only the right thing to do—it’s the smartest business decision you can make.

Rosanna Commisso - Founder, StressCare Solutions

Championing Workplace Wellbeing | Mental Health & Trauma Advocate

As the Founder of StressCare Solutions, my mission ‘to help organisations prevent burnout and build resilient teams’, is personal.

With over 30-years’ experience spanning health, training and community services, and my own lived experience of burnout, mental health challenges, and trauma—I bring both professional expertise and real-world understanding to my work.

Through engaging, evidence-based workshops, impactful keynotes, and hands-on trauma-informed support, I empower teams to build resilience, improve wellbeing and thrive.

Let’s build healthier workplaces—together.

📩 rosanna@stresscare.com.au | 🌐 www.stresscare.com.au