LEADERSHIP AS A RISK CONTROL
Over the past 12–18 months, we’ve spoken to plenty of collaborators about how they manage psychosocial risk. Because, these days, it’s not just a nice-to-have — it’s essential. This is especially true in Australian workplaces, as legislation requires it to be managed like any other safety hazard or risk.
But, we also know that challenges from work design within high-risk industries can’t just be snapped out of existence. So, to control the increase in mental health issues and cases of burnout, leadership has become increasingly crucial. However, building frontline leadership able to take on today’s complex, high-pressure work environments… that’s a pretty hefty investment.
So, the big question left — how can lifting leadership capability help manage psychosocial hazards and risks? Let’s unpack this by looking at why it matters, the key areas to focus on, and practical steps to consider when you’re looking to build safety leadership (or just straight-up leadership) capability.
Why leadership capability matters
Why should we even care about leadership when it comes to psychosocial risks? The answer’s simple: effective leadership can make or break your approach to managing these hazards, particularly as these hazards can interact and combine to create new, changed or higher risks.
Poor leadership often exacerbates stress and anxiety, and some of the other hazards that come with work design, such as remote or isolated work, lack of support, mismanaged organisational change management, and job demands. And we can’t forget that conflict or negative workplace relationships and interactions tend to explode under poor leaders.
Conversely, strong people leadership, characterised by empathy and engagement, can create an environment where these risks are minimised. But good leaders aren’t always born… sometimes, they’re created.
In safety-critical work environments, such as mining, construction, FMCG or manufacturing, the stakes are even higher. We need our leaders — especially our frontline leaders — to manage their tasks, but also understand and mitigate the psychological impact of work on their teams. This doesn’t just help with reducing sick leave and turnover. It also boosts productivity, engagement, and overall organisational resilience.
The building blocks of leadership capability
So, what does it take to build this kind of leadership capability? There are three critical components: connection, communication, and change.
1. Connection
Leaders with strong emotional intelligence can read the room, pick up on subtle cues, and respond with empathy. Far from being a skill that you’re either born with or not, emotional intelligence and the ability to build connections starts with understanding your own emotions and the impact they have on others. This emotional awareness fosters collaboration because it allows leaders to connect with people on a human level. When people feel understood and valued, they’re more likely to work together, share ideas, and support each other — all necessary for an engaged and productive team.
No surprise also that psychological safety both requires and precedes connection. It makes people feel comfortable speaking up, taking risks, and even making mistakes without fear of judgement. Leaders who prioritise connection create environments where this kind of safety thrives. They don’t just encourage collaboration — they make it safe to fail and learn together.
2. Communication
It’s no big secret that communication is probably where many leaders fall short. It’s not just about what leaders say, but often how they say it. Verbal communication and storytelling — whether done as part of a quick chat, a pre-start meeting or during one-on-one feedback — sets the tone for trust and openness. When paired with good non-verbal communication: eye contact, a nod of understanding and body language that shows ‘I’m with you’, it becomes exponentially more powerful.
And it’s a two-way street — active listening and honest feedback turn communication into a conversation. When leaders truly listen and invite feedback, it strengthens the bond with their teams and helps them catch psychosocial risks early on.
3. Change
This might not be one of the three leadership capabilities that first springs to mind as essential to controlling psychosocial hazards. But there’s a reason poor change management is a psychosocial hazard in itself. When a leader can effectively manage change and coach their teams through it, it’s possible to help individuals not only navigate the challenges of change, but ultimately embrace it.
Successful people leaders understand that motivating others through change isn’t just about explaining the ‘why’ — it’s about inspiring belief and confidence in the future. They know that change can be uncomfortable, and that people need both emotional and practical support to move through it.
In times of uncertainty or transformation (which is often a regular cycle in many organisations we work with), the ability to manage change becomes a vital leadership skill.
The inspiring impact of strong leadership
By lifting leadership capability, organisations can create a work environment where psychosocial risks are effectively managed, and employees feel supported and valued. This doesn’t just lead to better safety and wellbeing outcomes, it also enhances overall organisational performance.
All the skills we’ve shared here are absolutely teachable, and we build them into the leadership programs we create for our collaborators. From our AHRI award-winning bespoke leadership program for Kestrel Coal Resources, to safety leadership programs for major global warehousing and logistics companies, we know the value of good leaders. This is supported by the data, with Gallup’s 2024 State of the Workplace report showing that an effective and engaged people leader can motivate a team and move them from indifferent to inspired.
Leadership isn’t just about managing people — it’s about inspiring them, supporting them, and helping them thrive in a complex and often challenging world. And when it comes to managing psychosocial hazards, strong, capable leadership is not just a control — it’s a game-changer.
