Is your small business falling behind on psychosocial safety?
Here’s what you need to know.
If you run a small business in Australia, there is a good chance your team is one of the most important things that you have built.
In an article by the Australian Institute of Health and Safety it cited a national multidisciplinary study conducted by the Queensland University of Technology ( QUT) in 2025. The study found that small and micro sized businesses are significantly lagging behind when it comes to managing psychosocial hazards at work.
This poses significant risks in relation to compliance and the risks to the health and safety of workers.
The findings
The QUT led study surveyed 288 decision-makers across Australian small to medium enterprises (SMEs) and painted a troubling picture. Approximately one in five micro-business owners did not even know that they had legal obligations to manage psychosocial hazards.
More than half had no formal policies in place in relation to managing psychosocial hazards, and 44 per cent had never attempted to identify these risks in their workplace.
The pattern is evident. The smaller the business, the greater the gap in relation to awareness and taking action.
This matters because SMEs collectively employ 65 per cent of Australia’s workforce. That is why improving awareness and compliance is critical.
The legal exposure is apparent. Businesses that have not taken steps to identify or manage psychosocial risks are not only putting their people at risk, but they are also being exposed to regulatory penalties and civil liability.
Research conducted by QUT indicates that although there has been regulatory amendments in relation to psychosocial hazard management and Codes of Practice in place since 2021, many SMEs are not meeting their regulatory requirements.
Priority areas
The research team identified two priority areas in supporting SMEs compliance. Firstly, by creating practical and scalable resources for businesses that have limited time, resources and expertise. And designing targeted education programs that align with the context of micro-sized enterprises. Industry associations could also provide greater assistance in sharing resources and promoting good and best practice.
How Foremind Can Assist
This is exactly the gap that Foremind was built to address.
At Foremind, we believe that protecting your team’s mental health and wellbeing does not have to be complicated or costly. We work with small and medium-sized businesses to make psychosocial risk management practical, accessible and genuinely effective, without the enterprise tag. We are here to offer support and guidance along your psychosocial safety journey.
If you are unsure where your business stands, or you are aware of some gaps you have not yet addressed, now is the time to act.
If you would like to know more, feel free to reach out to the friendly Foremind team. We are here to make psychosocial safety simple, scalable and something that will benefit your entire team.
Authors: Langdon, Rebecca, Karanikas, Kektarios & Hon, Carol ( 2025) Psychological Hazard Management in Small to Medium-Sized Enterprises in Australia: Survey Findings to Inform Policy and Practice, Queensland University of Technology, Australia
Hello 👋 I’m Joel the founder of Foremind.
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