Psychological injuries at work are becoming an increasingly significant work health and safety (WHS) challenge for Australian organisations. According to Safe Work Australia’s Key Work Health and Safety Statistics Australia 2025, there were 17,600 serious workers’ compensation claims for mental health conditions in 2023-24 (preliminary), accounting for 12% of all serious claims. Over the past decade, these claims have increased by 161.1%, highlighting a growing need for organisations to better understand and manage psychosocial risks in the workplace.
The impact extends well beyond the number of claims. Workers with serious mental health condition claims experienced a median of 35.7 working weeks away from work, while the median compensation paid was $67,400, which is more than four times the median compensation across all serious workers’ compensation claims. A serious claim generally involves at least one working week of compensated time lost and excludes fatalities and journey claims.
These figures demonstrate that psychological health is not simply an employee wellbeing issue. It is a critical organisational risk that affects workforce capability, productivity and long-term business performance. In this article, we’ll explore what psychological injuries at work are, why claims are increasing, the costs for employers and workers, the psychosocial warning signs leaders should recognise, the difference between wellbeing initiatives and effective risk controls, and the practical steps organisations can take to create healthier, safer workplaces.
What Is a Psychological Injury at Work?
A psychological injury at work is a recognised mental health condition that is connected to work-related events, exposures or workplace stressors. It may develop when a person is exposed to harmful workplace conditions over time or experiences a significant work-related incident that affects their psychological health. Depending on the circumstances, psychological injuries may include conditions such as anxiety disorders, depression, post-traumatic stress disorder (PTSD), adjustment disorders and other clinically recognised stress-related conditions.
It is important to distinguish between workplace stress and a psychological injury. Experiencing stress at work does not automatically mean someone has sustained a psychological injury. Many employees encounter periods of increased pressure, tight deadlines or demanding workloads without developing a mental health condition.
According to Comcare, stress is a response that can occur when workers perceive that the demands of their job exceed their ability or available resources to cope. In many situations, stress is temporary and resolves once the source of pressure is reduced or additional support is provided. However, when workers are exposed to excessive, prolonged or repeated workplace stressors, the risk of psychological or physical harm may increase.
Understanding this distinction is essential for employers and leaders. Rather than viewing psychological injuries as an inevitable consequence of high-pressure work, organisations should focus on identifying and managing the workplace factors that may contribute to harm. By recognising psychosocial risks early and implementing appropriate controls, employers can help create safer, healthier and more productive workplaces.
Although the terms are often used interchangeably, psychological injuries and psychosocial hazards are not the same. Understanding the distinction is important for effective work health and safety (WHS) risk management.
A psychosocial hazard is any aspect of work that has the potential to cause psychological or physical harm. A psychosocial risk refers to the likelihood that workers may experience harm because of exposure to one or more psychosocial hazards. A psychological injury is the adverse health outcome that may develop if those hazards are not effectively identified and managed.
According to Safe Work Australia, psychosocial hazards can arise from how work is designed or managed, the physical working environment, workplace equipment, or interactions and behaviours between people at work. In other words, the hazard is the workplace condition or exposure, while the psychological injury is the possible consequence of that exposure.
Recognising this difference helps organisations shift their focus from reacting to injuries after they occur to proactively identifying and controlling workplace risks before they lead to harm. At Preferred Training Networks, our Psychosocial Hazards in the Workplace course helps organisations understand these concepts and develop practical strategies for identifying, assessing and managing psychosocial hazards in line with Australian WHS requirements.
Common Examples of Psychosocial Hazards
Psychosocial hazards can come from the way work is designed, managed or carried out. They can also come from workplace relationships and the way people interact with each other.
Common examples include:
- Heavy or conflicting workloads
- Little control over how work is done
- Poor support from managers or colleagues
- Unclear roles and responsibilities
- Lack of recognition
- Poorly managed workplace change
- Bullying or harassment
- Violence and aggression
- Remote or isolated work
- Exposure to traumatic events or material
- Poor workplace relationships
It is important to remember that a psychosocial hazard is not a mental health condition. It is something in the workplace that has the potential to cause psychological or physical harm.
The numbers show why psychological health at work deserves the attention of Australian leaders.
Psychological injury claims have risen sharply
According to the latest Safe Work Australia statistics, there were 17,600 serious workers’ compensation claims for mental health conditions in 2023-24.
That represents 12% of all serious claims.
Even more concerning is how quickly the number is growing. Serious mental health condition claims increased by 14.7% in one year and by 161.1% over the previous decade.
Here is the bigger picture:
Measure | Latest national figure |
Serious mental health condition claims | 17,600 |
Share of all serious claims | 12% |
Annual increase | 14.7% |
Increase over ten years | 161.1% |
Median time lost | 35.7 weeks |
Median compensation paid | $67,400 |
Mental health condition claims recorded the largest ten-year increase of any major injury or disease category in Safe Work Australia’s data.
They can also keep people away from work for much longer.
Claim measure | Mental health conditions | All serious claims |
Median time lost | 35.7 weeks | 7.4 weeks |
Median compensation | $67,400 | $16,300 |
The median time lost for mental health condition claims was 35.7 working weeks, compared with 7.4 weeks for all serious claims. Median compensation was also much higher: $67,400 compared with $16,300.
For employers, this means psychological injuries are not only a health and safety concern. They can also have a significant impact on teams, productivity and business continuity.
Note: The 2023-24 claim number is provisional. The median time lost and compensation figures are based on 2022-23 claims data.
There is no single reason why psychological injury claims are rising.
Greater awareness of mental health may mean that more people recognise and report problems. But workplace factors such as bullying, excessive pressure, violence and poorly managed change also continue to create risks.
Here are some of the key factors leaders should consider.
1. Bullying and harassment remain major sources of mental stress
Bullying and harassment continue to be major contributors to workplace mental stress.
Safe Work Australia data shows that among serious claims linked to mental stress:
- 33.2% involved harassment or workplace bullying.
- 24.2% involved work pressure
- 15.7% involved exposure to violence and harassment
These problems should not simply be labelled as “employee wellbeing issues”.
The way an organisation responds matters.
Risk can increase when complaints are ignored, poor behaviour becomes normal, managers are slow to act, or employees are afraid that speaking up will affect their careers.
Clear standards, confidential reporting processes and consistent action can help create a workplace where concerns are taken seriously.
Appropriate workplace bullying awareness training can also help employees and managers recognise inappropriate behaviour, understand reporting processes and respond consistently.
2. Work demands can exceed available time and resources
Being busy does not automatically mean a workplace is unsafe. Most jobs involve periods of pressure.
The problem is when high pressure becomes the normal way of working. A busy week is normal. When every week is a “busy week”, something probably needs to change.
Employees may be dealing with unrealistic workloads, staff shortages, competing deadlines, constant interruptions or too little time to recover between demanding periods.
Some people may also be given responsibilities without enough training, resources or authority to carry them out properly.
When this happens, telling employees to “be more resilient” is not enough.
Leaders need to look at the work itself.
Can priorities be changed? Is there enough staff? Are deadlines realistic? Do employees have the resources they need?
Individual skills can still help. For example, resilience skills training helps people develop practical skills for staying composed, regulating emotions and dealing with pressure.
However, resilience training should support good work design, not replace it.
3. Workers are experiencing greater exposure in particular industries
Psychological injuries can happen in any industry, but some workers face higher levels of exposure to psychosocial hazards.
Safe Work Australia has identified high numbers of serious mental health condition claims in areas such as health care and social assistance, public administration and safety, and education and training.
There are understandable reasons for this.
Workers in these sectors may regularly deal with distressed or aggressive people, emotionally difficult situations, staff shortages, traumatic incidents or high-pressure decisions.
Some may also have limited control over their workload.
The important point is not that these industries are automatically unsafe. It is that organisations need to understand the specific hazards their employees face and put suitable controls in place.
4. Poorly managed organisational change can create additional risk
Change is a normal part of working life.
Restructures, new technology, changes in leadership and new ways of working can all be positive. But when change is poorly managed, it can also create psychosocial risks.
Effective change management training can also help leaders develop the communication and implementation skills needed to support employees through organisational change.
Imagine an organisation introducing a major new technology system.
Employees may have to learn new processes while still completing their normal workload. At the same time, they might be unsure about how their responsibilities will change.
If communication is poor or training is limited, uncertainty can quickly turn into frustration and pressure.
Leaders can reduce this risk by communicating clearly, consulting employees, providing enough training and adjusting workloads while people adapt.
“We’ll figure it out as we go” might work for a weekend road trip. It is not a great change-management plan.
5. Greater awareness may be improving reporting
There is also a positive side to increased awareness of workplace mental health.
People are becoming more comfortable talking about psychological health, stress and workplace hazards.
As stigma reduces, employees may be more willing to report problems that might previously have gone unspoken.
This could explain some of the increase in claims.
However, it does not mean the trend should be dismissed as simply “better reporting”. The continuing presence of work pressure, bullying, harassment and workplace violence shows that real workplace risks still need attention.
The Organisational Cost Goes Beyond Compensation Payments
A workers’ compensation payment is only one part of the cost of a psychological injury.
Think about what happens when an experienced employee is away from work for several months.
Their colleagues may need to take on extra work. Projects may slow down. Specialist knowledge may be temporarily lost. The organisation might need to recruit or train someone else.
There can also be less visible effects, including lower morale, reduced trust in management and employees becoming less willing to raise concerns.
The 35.7 weeks of median time lost and $67,400 in median compensation associated with mental health condition claims show how significant the impact can be, and those figures do not include every indirect cost to the organisation.
Psychological injury can be harder to recover from
Psychological injuries can also create additional challenges when an employee returns to work.
Earlier Safe Work Australia research reported a return-to-work rate of 79.1% for mental health condition claims, compared with 91.6% across all injuries.
One reason returning can be difficult is that the workplace itself may be connected to what happened.
For example, an employee may be concerned about returning to the same workload, team conflict or unresolved workplace behaviour.
Supporting recovery therefore involves more than focusing on the individual. Organisations should also consider whether the workplace hazards that contributed to the problem have been addressed.
Managers do not need to diagnose mental health conditions. They do, however, need to pay attention to what is happening in their workplace.
Often, the first warning signs are not dramatic. They appear as small changes in a team or workplace that gradually become a pattern.
Organisational warning signs
Look for patterns such as:
- Increasing overtime
- Frequent absences
- High staff turnover
- More complaints or grievances
- Missed deadlines
- Increasing mistakes
- Persistent understaffing
- Employees regularly working after hours
- Repeated requests for help with workloads
One of these signs does not necessarily mean there is a psychosocial problem.
Several happening at the same time may be a reason to look more closely.
Team warning signs
Changes within a team can also provide useful clues.
Managers might notice more arguments, less collaboration or confusion about who is responsible for what. Employees may stop contributing to meetings or become reluctant to raise problems.
Another warning sign is when rude or aggressive behaviour starts being treated as normal.
A team that has stopped speaking up may look quiet from the outside, but that does not necessarily mean everything is going well.
Changes managers may observe in individuals
A manager may notice that someone is behaving differently from usual. They might be missing more work, struggling to concentrate, making unusual mistakes or withdrawing from colleagues.
An employee might also repeatedly say they feel overwhelmed or raise concerns about workload or workplace behaviour.
These signs do not prove that someone has a mental health condition.
Instead of trying to diagnose the person, a manager can have a private and respectful conversation. Ask open questions, listen to their concerns and consider whether workplace factors are contributing.
Mental health awareness in the workplace training helps managers and employees recognise signs of distress, approach conversations more confidently and understand available support pathways.
This is an important distinction. Workplace wellbeing programs can be valuable, but they cannot fix every workplace problem.
A resilience workshop, mindfulness session or employee assistance program may help an individual manage a difficult situation.
But what if the real problem is an impossible workload?
Or ongoing bullying?
Or chronic understaffing?
In those situations, the organisation also needs to address the source of the risk.
Individual wellbeing support
Wellbeing initiatives can include:
- Resilience training
- Employee assistance programs
- Mental health awareness
- Mindfulness
- Exercise programs
- Stress-management tools
- Access to counselling
These initiatives can help employees recognise concerns, seek support and develop useful personal skills.
A mindfulness session can be useful, but it cannot make Monday morning’s workload disappear.
Organisational risk controls
Risk controls focus on changing the workplace conditions creating or increasing the risk.
That could mean:
- Reducing unreasonable workloads
- Increasing staffing or resources
- Making roles clearer
- Consulting employees about change
- Improving procedures for dealing with aggression
- Acting quickly on bullying
- Improving reporting processes
- Providing better manager support
- Reviewing work schedules
- Allowing suitable recovery time
Consider an employee who is regularly working late because their workload is unrealistic.
Providing a stress-management workshop may help them personally. But if nothing changes about their workload, the underlying hazard remains.
The question leaders should ask
A wellbeing approach might ask:
“How can we help this employee cope?”
A risk-management approach goes one step further:
“What is happening at work that may be causing or increasing the problem?”
Good organisations ask both questions.
Under Australia’s model WHS framework, PCBUs must eliminate psychosocial risks where reasonably practicable or minimise them so far as is reasonably practicable.
The exact laws and codes that apply can differ between states, territories and Commonwealth workplaces. Always check the requirements that apply to your organisation.
Note: This article provides general information only. It is not legal, medical or work health and safety advice. Organisations should check the requirements in their jurisdiction and seek professional advice where appropriate.
A simple place to start is with four steps.
Step 1: Identify psychosocial hazards
Do not wait until someone makes a workers’ compensation claim. Look at what is already happening in the workplace. Employee surveys, conversations, incident reports, complaints, overtime, absence data, turnover and exit interviews can all provide useful information.
Most importantly, talk to employees.
The people doing the work are often in the best position to explain what makes it difficult, stressful or unsafe.
Step 2: Assess the risk
Once you identify a hazard, look at how serious the exposure may be.
Ask:
- How often does it happen?
- How long are employees exposed?
- How serious could the harm be?
- Are several hazards happening together?
- Which employees are most exposed?
- Are existing controls working?
This helps leaders decide which risks need attention first.
Step 3: Implement controls
The next step is to address the source of the risk where reasonably practicable. If workload is the problem, the answer might involve staffing, deadlines, priorities or work allocation.
If bullying is the issue, stronger behavioural standards, reporting processes and management action may be needed.
If workers face aggression, the organisation may need better procedures, staffing arrangements and escalation processes.
Training can help employees and managers respond more effectively, but training alone cannot fix a poorly designed work system.
Step 4: Review whether controls work
Putting a control in place is not the end of the process. Leaders need to check whether it improved the situation.
Monitor things such as overtime, complaints, incidents, employee feedback, turnover and workload.
Then ask employees whether they have noticed a difference.
Organisations can also use the free People at Work psychosocial risk-assessment tool, which is supported by Australian WHS regulators.
One of the simplest questions a manager can ask is:
“Is the amount of work we are asking people to do actually realistic?”
Do not rely only on job descriptions. Look at what employees are really doing each day.
Are priorities constantly changing? Are people regularly staying late? Are breaks being missed? Are employees covering vacant roles for months at a time?
When there is too much work, leaders need to decide what matters most.
Some work may need to be delayed. Deadlines may need to move. More resources may be required.
And if everything is urgent, nothing is urgent.
It is also important to consider emotional workload.
For example, a community-services employee may have a manageable number of cases on paper, but those cases could involve highly distressed or aggressive clients.
In this situation, resilience training can be useful, but it should not be the only response.
Leadership should also review caseloads, staffing, breaks, escalation support and what happens after a difficult incident.
How Leaders Can Improve Support and Role Clarity
Employees need more than a manager who says, “My door is always open.”
An open door is helpful. Employees still need to know which door to knock on.
They need to know what is expected of them, who they report to and where they can go when something goes wrong.
Good support can include:
- Clear responsibilities
- Realistic expectations
- Regular one-to-one conversations
- Clear reporting lines
- Easy-to-understand escalation procedures
- Timely management decisions
- Appropriate training
- Consistent communication
Most importantly, employees need to believe that raising a genuine concern will not damage their career.
If people are afraid to speak, an open-door policy means very little.
Psychological safety does not mean managers should avoid difficult conversations.
Employees still need clear expectations and accountability.
The difference is how those conversations are handled.
A manager can discuss poor performance without humiliating, threatening or personally attacking an employee.
Focus on what has happened.
Explain the expected standard, describe the gap and give the employee an opportunity to respond.
It is also worth asking whether something in the workplace is contributing to the problem.
Does the employee understand their role? Have they received enough training? Is their workload realistic?
Once the situation is understood, agree on clear actions and follow up consistently. After all, employees cannot meet expectations they did not know existed.
At Preferred Training Networks, our managing poor performance and unacceptable employee behaviour training helps managers have clearer performance conversations, set expectations and address difficult behaviour in a fair and structured way.
Where Training Fits Into a Broader Psychosocial Risk Strategy
Training is an important part of psychosocial risk management, but it is only one part.
Training can build knowledge and confidence. It cannot fix chronic understaffing, unclear roles or an unsafe workplace culture by itself.
The goal should be to combine good workplace systems with capable managers and employees.
Psychosocial Hazards in the Workplace Training
Our psychosocial hazards in the workplace training helps participants understand common psychosocial hazards, identify potential risks and explore practical approaches to managing them.
Mental Health Awareness in the Workplace
Our mental health awareness in the workplace training helps managers and employees recognise potential signs of distress and understand how to respond supportively.
Managers do not need to become mental health experts. They need enough knowledge and confidence to recognise when a conversation or further support may be needed.
Resilience Skills Training
Our workplace resilience skills training helps employees build practical skills for dealing with pressure, managing emotions and maintaining composure.
These skills can be valuable, but resilience training works best alongside good workplace systems and appropriate risk controls.
Managing Poor Performance Training
Performance conversations can become stressful when managers are unsure how to handle them.
Our practical training for managing poor performance gives leaders practical tools for setting expectations, addressing problems early and managing difficult behaviour fairly.
Psychosocial risk management cannot be completed in 30 days, but organisations can make a meaningful start. Prioritise the hazards presenting the greatest or most immediate risk, while maintaining a plan to address other identified hazards.
Week 1: Review the evidence
Review absence, overtime, staff turnover, complaints and incidents.
Look for teams that seem to be under constant pressure.
Also consider recent changes in the organisation and whether they have created extra work or uncertainty.
Week 2: Consult employees
Ask employees what makes their jobs unnecessarily difficult.
Talk about workloads, responsibilities and the support they receive.
Give people a way to provide anonymous feedback if they are uncomfortable speaking openly.
Week 3: Select priority controls
Identify one or two important hazards and decide what practical changes can be made.
Give someone responsibility for each action and set a realistic timeframe.
Week 4: Build leader capability and monitor progress
Make sure managers understand their responsibilities and know how employees can report or escalate concerns.
Provide training where there are capability gaps.
Then set a date to review what has changed.
Remember, the first 30 days are only the beginning. Psychosocial risk management needs to be an ongoing process.
Take a moment to consider your own workplace:
- Do employees have enough time and resources to do their jobs?
- Does everyone understand their responsibilities?
- Can employees raise concerns without fear?
- Is bullying or inappropriate behaviour addressed consistently?
- Are employees consulted during major changes?
- Do managers know how to escalate concerns?
- Are high-risk teams getting enough support?
- Are wellbeing programs being used instead of fixing workplace problems?
- Do we check whether our risk controls are working?
- Do our managers have the skills they need?
If you cannot confidently answer some of these questions, that may be a good place to start.
What is a psychological injury at work?
A psychological injury is a psychological health condition connected to workplace events, conditions or exposures.
Not every stressful day at work is a psychological injury. Individual circumstances and health conditions need to be assessed appropriately.
What are the most common causes of psychological injury claims?
Safe Work Australia data shows that harassment and bullying, work pressure, and exposure to violence and harassment are prominent factors in serious mental-stress claims.
Different workplaces will have different risks, so organisations should look closely at their own work environment.
What is the difference between workplace stress and psychological injury?
Stress is a response to pressure or demands.
A psychological injury is a health outcome that may develop following severe, prolonged or repeated exposure to workplace stressors.
Are employers required to manage psychosocial hazards?
Under Australia’s model WHS framework, organisations have duties to eliminate psychosocial risks where reasonably practicable or minimise them so far as is reasonably practicable.
Because requirements can vary between jurisdictions, employers should check with their relevant WHS regulator.
Can resilience training prevent psychological injuries?
Resilience training can give employees useful skills for managing pressure and difficult situations.
However, it cannot replace action on excessive workloads, bullying, violence, poor support or badly designed work.
The strongest approach is to combine individual capability with good organisational risk controls.
What should a manager do if an employee appears distressed?
Start with a private and respectful conversation.
Explain what you have noticed and give the employee an opportunity to talk.
Listen without trying to diagnose them.
Where relevant, discuss workplace factors, available support and any immediate safety concerns.
Managers should also follow their organisation’s HR and WHS processes and seek professional guidance when needed.
How can organisations measure psychosocial risk?
There is no single measure that tells an organisation whether its psychosocial risks are being effectively managed.
Look at several sources of information, including employee feedback, overtime, absenteeism, staff turnover, complaints, incidents and workload data.
Most importantly, keep talking to employees and check whether the controls you introduce are making a difference.
The rise in psychological injuries at work is something Australian leaders cannot afford to ignore.
The latest figures show not only that claims are increasing, but that mental health condition claims can involve much longer periods away from work and much higher compensation payments.
However, the answer is not simply to tell employees to become more resilient.
Leaders need to look at the workplace itself.
Are workloads realistic? Are roles clear? Do employees feel supported? Is poor behaviour addressed? Are people consulted during change? Can concerns be raised safely?
These are practical questions that can lead to practical improvements.
Training can also help managers and employees build the knowledge and confidence needed to recognise problems earlier and respond more effectively.
At Preferred Training Networks, we provide customised workplace training to help Australian organisations build stronger leadership capability and improve awareness of psychological health and psychosocial risks.
Explore our psychosocial hazards training, mental health awareness training, resilience skills training and managing poor performance training to find the right training for your workplace.
