In 2025, psychosocial risk is the most complex and costly compliance issue Australian WHS professionals face.
It’s also the least understood.
Regulators now expect every organisation to manage psychosocial hazards with the same level of structure and seriousness as physical hazards. Yet many safety teams are still unsure how to conduct a proper psychosocial risk assessment that meets legal obligations.
If you’ve found yourself thinking…
- Where do I even start?
- What do I need to document?
- How do I assess something I can’t see or measure?
You’re not alone.
This guide will show you how to conduct a psychosocial risk assessment that is legally compliant, operationally practical, and backed by data—not guesswork.
What Is a Psychosocial Risk Assessment?
A psychosocial risk assessment is the formal process of identifying and evaluating psychological hazards in your workplace. These include any factor in the design, organisation or management of work that could cause psychological harm.
Common psychosocial hazards include:
- High job demands and workloads
- Low job control or unclear roles
- Workplace bullying or harassment
- Poor organisational change management
- Isolated or remote work
- Inadequate reward and recognition
- Lack of supervisor support or toxic leadership
Under Australian WHS laws, employers must:
- Identify psychosocial hazards
- Assess the risk they pose
- Implement controls
- Review effectiveness
- Consult workers
- Keep records
Every state and territory now mandates this under their WHS legislation. Failing to assess psychosocial risk is a breach of duty.
Step-by-Step: How to Conduct a Psychosocial Risk Assessment Without Guesswork
Step 1: Identify the Psychosocial Hazards in Your Workplace
Start by listing all potential psychosocial hazards present in your organisation. These will differ based on:
- Industry
- Role types
- Work locations (remote, field-based, frontline)
- Team size and structure
Sources of information include:
- WHS incident reports
- Exit interviews and complaints
- Worker surveys
- Consultation with teams
- External benchmarking
For many roles, hazards are embedded in job design or team dynamics. You won’t find them on a clipboard walk-through.
This is where most organisations make their first mistake—they rely on observation, not data.
Step 2: Screen for Individual and Role-Specific Risk Factors
The next step is understanding which hazards present real risks based on the people performing the roles.
For example:
- Two people may face the same job demands—but one has the coping ability, resilience and background to manage it safely. The other does not.
- One candidate may thrive in remote work. Another may become disengaged or psychologically unwell without supervision.
FitWorker360’s GFI1 and GFI2 assessments allow you to screen for:
- Resilience
- Confidence
- Empathy
- Safe Work Practices
This takes the subjectivity and guesswork out of risk profiling—and gives you a forensic snapshot of how individuals may respond under pressure.
Step 3: Evaluate the Likelihood and Consequence of Each Hazard
Once hazards are identified, assess:
- How likely is the hazard to occur?
- What is the consequence if it does?
You can use a simple risk matrix to plot this. Factors to consider include:
- Number of people exposed
- Severity of outcome (e.g. long-term stress leave, psychological injury, burnout)
- Whether there is a history of similar incidents
- Vulnerable populations (e.g. new starters, junior staff, lone workers)
At this point, you should be documenting each hazard, its level of risk, and who is impacted.
Step 4: Implement Controls Based on Risk Level
Now that risks have been ranked, you need to introduce controls that are proportionate.
Controls must be:
- Documented
- Communicated to teams
- Monitored for effectiveness
Step 5: Review, Consult and Record
Compliance does not stop once controls are in place.
You must:
- Review risks and controls regularly (e.g. quarterly or after major incidents)
- Consult with workers and health and safety representatives
- Keep records of assessments, decisions, and consultations
This includes:
- Risk assessment documents
- Screening results
- Consultation notes
- Audit logs
- Incident trends
Having this documentation means you can demonstrate compliance during audits, defend against claims, and show insurers that you are proactively managing risk.
Common Mistakes That Put Organisations at Risk
- Using generic wellbeing surveys instead of formal risk tools
- Relying only on HR to identify hazards (vs WHS integration)
- Not screening candidates before hiring
- Applying one-size-fits-all solutions
- Failing to document reviews or consultation
Each of these can lead to non-compliance—and leave your organisation exposed to injury claims, reputational damage, and increased insurance premiums.
Why FitWorker360 Eliminates the Guesswork
FitWorker360 helps organisations perform psychosocial risk assessments quickly, objectively, and in line with WHS legislation.
We provide:
- Online, clinically led functional assessments for physical risk
- GFI1 and GFI2 assessments for psychosocial and behavioural risk
- Results delivered in 22 hours
- Zero travel, fully remote testing across Australia
- Role-specific insights, backed by over 200,000 assessments
- Documentation that satisfies audit, insurer and legal requirements
This gives WHS managers a structured, scalable way to assess risk—and confidently move from reactive to proactive.
Final Word: Compliance Requires Clarity, Not Guesswork
You are no longer being asked to promote wellbeing. You are being required to prevent harm.
Psychosocial hazards are now embedded in WHS legislation. That means guesswork is no longer acceptable—and subjective risk assessments are no longer defensible.
With FitWorker360, you can:
- Identify both physical and psychosocial risks
- Assess and control risk based on role fit
- Provide documentation for regulators and insurers
- Support compliance and claim prevention at scale
Ready to Get Your Risk Assessment Right?
Let us help you remove the guesswork and implement a system that works.
📞 Book a 15-minute strategy call with Guy Terkelsen
🌐 www.fitworker360.com.au
📧 guy.terkelsen@fitworker360.com.au
