Psychological Health and Safety at Work

In today’s fast-evolving business landscape, organisations are increasingly recognising that their most valuable asset is their people. While physical health and safety has long been a priority, progressive employers are now placing equal emphasis on psychological health and safety — a critical, yet historically overlooked, component of a healthy and high-performing workplace.

Creating a psychologically healthy and safe work environment means identifying and managing the work-related factors that may pose a risk to employees’ mental health. These include excessive workload, poor job design, lack of role clarity, bullying, harassment, and unsupportive leadership. It’s about shaping organisational systems and conditions that minimise harm and promote wellbeing at work — not just responding when issues arise.

Why psychological health and safety matters

Psychological health and safety is not a ‘nice-to-have’ — it is a legal, ethical, and strategic imperative. When psychosocial hazards are well-managed, employees are more likely to stay healthy, engaged, productive, and committed to their organisation. Conversely, unmanaged psychosocial risks can result in stress-related harm, disengagement, absenteeism, presenteeism, high turnover, and even serious mental health conditions.

Rob Tuttey, Director of Wellbeing, Health and Safety for Bupa Global, India and UK Insurance, says:

“Prioritising psychological health and safety in the workplace is essential for reducing stress and creating a supportive, healthy environment. Early interventions can significantly enhance an individual’s wellbeing and lead to more positive outcomes. Open communications between the employee and their manager play an essential role in supporting employees’ mental health.”

A US-based study found that teams working within psychologically healthy environments significantly outperform others. These teams are more agile, resilient, and better equipped to navigate change. In a world where adaptability and innovation are key to competitive advantage, psychological health and safety becomes a strategic enabler — reducing risk and unlocking human potential.

The role of psychological safety

While psychological health and safety focuses on organisational-level risk management, psychological safety — the shared belief that it is safe to speak up, take interpersonal risks, and express vulnerability — plays a key role within it.

Psychological safety is one of many protective factors that support a psychologically healthy and safe workplace. When people feel safe to raise concerns, share ideas, or admit mistakes without fear of humiliation or retribution, it becomes easier for organisations to detect early warning signs of stress, address systemic issues, and foster a culture of trust and inclusion.

However, psychological safety alone is not enough. It must be supported by strong leadership, fair systems, clear roles, effective workload management, and zero tolerance for bullying, discrimination or harassment. Psychological safety is a means to improving psychological health and safety — not a substitute for it.

The impact on wellbeing and presenteeism

Psychological health and safety plays a vital role in preventing harm and promoting employee wellbeing. In environments where work-related risks are actively identified, controlled, and reviewed, employees are more likely to thrive — physically, emotionally, and cognitively.

This directly impacts issues like presenteeism, where employees are physically present but mentally unwell or disengaged. By addressing the root causes of workplace stress, such as unmanageable workloads, lack of support, or toxic behaviours, organisations can significantly reduce the drivers of harm and create conditions where people can perform at their best.

When employees understand their roles, feel supported by their leaders, and trust that their wellbeing matters, they are more likely to proactively engage in self-care and team care — leading to improved morale, productivity, and job satisfaction.

The role of leadership

Leadership plays a pivotal role in cultivating psychologically healthy and safe environments. Senior leaders set the tone for expectations, accountability, and resourcing. People leaders are the frontline influencers of day-to-day experience.

Chanel Nesci, General Manager Wellbeing & Safety at Bupa Asia Pacific, says "Psychological health and safety might sound daunting, but it doesn’t have to be complicated. Good leadership —leaders who genuinely connect with their teams, ask thoughtful questions, and seek to understand and address the challenges people face, whether it’s managing workload, navigating changes considerately, or supporting conflict resolution, are already taking meaningful steps to create a mentally healthy, safe and supportive environment."

When leaders demonstrate genuine care, address psychosocial hazards, and take early action on wellbeing concerns, they help build a workplace culture that prevents harm and promotes positive outcomes. Importantly, this includes fostering psychological safety within teams — encouraging open dialogue, active listening, and respect for different views.

Psychologically safe leadership is necessary, but not sufficient. Leaders also need to ensure they are complying with their obligations under health and safety legislation by recognising, assessing, and managing psychosocial risks. Training and development programs can support this by building capability in risk management, emotional intelligence, and inclusive communication.

5 practical steps for HR and business leaders

For HR and operational leaders, embedding psychological health and safety into the fabric of the organisation requires intentional, coordinated effort. Here are five practical steps to guide this work:

1. Assess the current climate
   Use validated tools, surveys, focus groups, and one-to-one conversations to understand the presence of psychosocial hazards and the impact they may be having on employee mental health and wellbeing.
2. Promote open communication
   Establish regular check-ins, anonymous feedback channels, and psychological safety practices within teams so that issues can be surfaced early and acted on proactively.
3. Train managers and leaders
   Equip leaders with the knowledge and skills to recognise psychosocial risks, respond to mental health concerns, and create healthy team environments through respectful, supportive interactions.
4. Embed into systems and processes
   Ensure psychological health and safety is reflected in policies, performance management, onboarding, incident response, and wellbeing strategies — making it part of how business gets done.
5. Recognise and reinforce positive behaviours
   Celebrate and reward behaviours that align with a psychologically healthy workplace — including collaboration, empathy, fair treatment, and responsible leadership.

A competitive advantage

Organisations that prioritise psychological health and safety are better positioned to attract and retain top talent, foster innovation, and drive sustainable performance. In a competitive market, it’s not just about what you do — but how people feel while doing it.

By embedding psychological health and safety into leadership, culture, and systems, businesses can create workplaces that not only meet compliance expectations but also unlock the full potential of their people. The result? Safer, stronger, and more successful organisations — built to thrive.

Watch our recent Health Horizons event exploring this topic

Watch our panel discussion exploring what psychological health and safety really means in today’s workplace. You’ll hear insights from Bupa Asia Pacific and our other expert panellists as they unpack leading practices and offer practical strategies to help you create a safer, healthier, and more supportive workplace.
Watch bupa's health horizons virtual event: how psychologically healthy and safe is your workplace?