By Georgia Henry, GAICD
Directors play a crucial role in ensuring their organisation meets its psychosocial safety obligations under work health and safety (WHS) legislation. To fulfill these responsibilities effectively, directors should focus on the following key areas:
Exercise Due Diligence
Directors have a personal duty to exercise due diligence to ensure their organisation complies with WHS laws, including those related to psychosocial safety. This involves:
Acquiring and maintaining up-to-date knowledge of psychosocial work health and safety matters
Gaining an understanding of the nature of the organisation's operations and the associated psychosocial hazards and risks
Ensuring appropriate resources and processes are available to eliminate or minimise psychosocial risks
Verifying that these resources and processes are being effectively used and implemented
Intentionally Design Organisational Culture
Establish core elements of culture that provide clarity of purpose, vision, and values
Set clear expectations for values-based behaviours and standards of performance that create a psychologically safe environment
Ensure values are embedded in ways of working, policies and procedures, decision making, and upheld by leaders
Monitor culture for early indications of risks
Establish Governance Structures for Board Oversight
Make psychosocial safety a regular board agenda item. This can be aligned with safety and/or culture discussions
Approve organisational objectives and measurable performance criteria for psychosocial risk management
Ensure the company's strategic WHS plan addresses psychosocial risk improvements
Manage risks
Implement a comprehensive risk management process for psychosocial hazards
Ensure the organization has a psychosocial risk register and evidence that risks are being reduced
Consult the psychosocial risk register and consider psychosocial impacts when making decisions
Allocate Resources
Ensure sufficient resources are allocated to deliver psychosocial safety plans in both the short and long term
Invest in technology to systemise incident management reporting
Develop Leadership Capability
Support the development of additional leadership capability and competency for psychosocial risk management
Ensure senior leaders are appropriately trained to understand their duties under WHS laws
Demonstrate psychosocial safety in the boardroom
Set the tone from the top by creating a psychologically safe environment for board deliberations
Role model psychological health and safety and appropriate behaviours in the boardroom
Implement Effective Systems and Processes
Ensure appropriate policies, systems, and processes are in place to manage known or emerging psychosocial hazards
Implement comprehensive incident management systems to capture, manage, and report WHS issues
Monitor and Review
Regularly conduct staff surveys regarding psychological health and safety
Review control measures periodically and when complaints are made, or worker feedback indicates hazards are present
Seek independent assurance to demonstrate compliance once systems are in place
Engage with Stakeholders
Consult with workers as part of the risk assessment and management process
Engage in open dialogue with employees about their concerns and recommendations
Stay Informed
Keep up to date on WHS issues affecting the industry
Understand legislative obligations and best practices to mitigate and eliminate risks
By focusing on these areas, directors can ensure their organisation is meeting its psychosocial safety obligations under WHS legislation while fostering a healthier, more productive, and resilient workforce.
HENRY REED is a highly regarded Culture & Leadership Consultancy supporting clients across Australia. Our partnership begins in the boardroom and supports every person in the organisation through culture audit, culture design, embedding culture, culture leadership, and turning potential into performance.
Contact Georgia Henry GAICD on 1300 266 995 for a confidential discussion about your culture needs, or book a time for an online meeting.