As artificial intelligence and automation change the composition of our workforce, another priority is rising: managing psychosocial hazards. In Australia, the Code of Practice on managing psychosocial hazards sets out a straightforward process: identify hazards, assess the risks, control those risks and review the controls, all underpinned by genuine consultation with workers. This is not about achieving perfection, it is about systematic attention.

Many organisations misunderstand psychosocial compliance. They gather existing culture initiatives, wellbeing programs and regulatory efforts under one label and hope that satisfies the requirement. But psychosocial compliance is not a collection of activities; it is a risk management process. It asks organisations to identify specific hazards, such as high job demands, poor support or role ambiguity, assess how serious they are, implement controls (for example, job redesign, training or supervision) and monitor whether those controls are working. Confidential consultation with workers is critical throughout the process.

The intersection with AI is important. As roles change and headcounts shrink, psychosocial risks can increase. Workers may face uncertainty about their future, evolving tasks and fewer colleagues to share workload. Leaders need to be equipped to recognise these stressors and to act. Good psychosocial risk management does not turn line managers into psychologists. It simply ensures that they have the training, tools and supervision to respond appropriately.

The legislation does not expect organisations to be best practice from day one. It expects them to think systematically about hazards, apply reasonable controls and commit to continuous improvement. Compliance is a powerful motivator, but it should not be the only reason to act. Wellbeing drives performance, retention and culture. By embedding psychosocial risk management into business strategy, organisations go beyond compliance to create safer, more resilient workplaces.

Treat psychosocial risk management as a chance to build better culture. Identify your hazards, assess and control them, consult your people, and review regularly. The investment will pay back in engagement, trust and productivity.