Ignoring Psychosocial Health in the Workplace: A Risky Oversight

By: Drake WellbeingHub


In the hustle and bustle of meeting deadlines and achieving targets, the psychosocial health of employees often takes a backseat. However, neglecting this crucial aspect can lead to significant risks not only for the individual employees but also for the overall health of the organisation. This article sheds light on the consequences of overlooking psychosocial health in the workplace and underscores the necessity of proactive measures.


Understanding Psychosocial Health:

Psychosocial health encompasses the psychological and social aspects of an individual's wellbeing. It is influenced by factors such as workplace culture, employee relationships, job demands, and work-life balance. A positive psychosocial environment supports mental health, enhances job satisfaction, and fosters a sense of belonging and purpose among employees.


Risks of Neglecting Psychosocial Health:

Increased Mental Health Issues:

Ignoring the psychosocial health of employees can lead to an increase in mental health problems such as anxiety, depression, and stress-related disorders. The World Health Organisation has warned that depression and anxiety disorders cost the global economy US$1 trillion each year in lost productivity.

Reduced Productivity and Performance:

Employees struggling with poor psychosocial health are less able to concentrate, make decisions, and be productive. The American Psychological Association reports that workplace stress leads to significantly lower productivity levels and higher instances of work-related mistakes.

Higher Absenteeism and Turnover Rates:

An unhealthy work environment contributes to higher rates of absenteeism and employee turnover. Employees are more likely to take sick leave or look for new job opportunities if they feel unsupported and stressed in their current positions.

Poor Team Dynamics and Morale:

The neglect of psychosocial health can lead to poor team dynamics, including communication breakdowns, conflicts, and a lack of cooperation. This not only affects morale but also hinders collaborative efforts and innovation.

Legal and Financial Consequences:

Organisations that fail to address workplace psychosocial risks may face legal challenges, including claims for psychological injury. Additionally, the financial burden of increased healthcare costs, compensation claims, and the need to recruit and train new staff can be significant.


Addressing psychosocial health in the workplace involves creating a supportive environment that recognises the value of mental health and wellbeing. This can be achieved through:


  • Implementing policies that promote work-life balance.
  • Offering mental health resources and support, such as EAP programs.
  • Encouraging open communication about mental health concerns.
  • Providing training for managers to recognise and address psychosocial risks.


The risks associated with ignoring psychosocial health in the workplace are too significant to overlook. By prioritising the wellbeing of employees, organisations can not only mitigate these risks but also enhance productivity, foster a positive work culture, and support sustainable growth. The time to act is now—investing in psychosocial health is investing in the future of your organisation.

Get in touch with our team if you’re interested in finding out more about how Drake WellbeingHub can support the health and wellbeing of your team members. We're happy to develop a bespoke Consulting Service package based on your business needs. Get in touch with us today to discuss how we can help you. Visit our website or call us on 1300 135 600.



  • World Health Organisation. Mental Health in the Workplace.
  • American Psychological Association. Stress in America: The Impact of Discrimination.

Stay informed on all things wellbeing in the workplace and help your organisation thrive!

<< Back
Yes, you can reduce employee stress – and maximise performance, too

Yes, you can reduce employee stress – and maximise performance, too

Read More
Challenging Stereotypes: The Benefits of Embracing Diversity in the Workplace

Challenging Stereotypes: The Benefits of Embracing Diversity in the Workplace

Read More
Is your organisation ready for post-COVID?

Is your organisation ready for post-COVID?

Read More