Why Every Organisation Needs a Psychosocial Working Group

A leader implementing psychosocial risk management via the psychosocial working group

A psychosocial working group is one of the most practical and effective ways an organisation can move from policy to real, measurable improvement in psychological health and safety. While many organisations now recognise psychosocial hazards as part of their work health and safety duties, fewer have established a structured mechanism to coordinate action across departments. That mechanism is the psychosocial working group.

In this article, we explore what a psychosocial working group is, why it matters, how to structure it, and the common mistakes to avoid.


What Is a Psychosocial Working Group?

A psychosocial working group is a cross-functional team responsible for overseeing the identification, assessment, control, and ongoing review of psychosocial risks within an organisation.

Unlike ad hoc wellbeing committees or reactive investigation teams, a psychosocial working group is embedded within governance structures. It provides strategic oversight and operational coordination. It connects data, decision-making, and accountability.

Under Australia’s model work health and safety laws, duties fall to the Safe Work Australia framework and are implemented by state regulators. These laws require organisations to manage psychosocial hazards in the same way as physical hazards. A working group provides the structure to meet this requirement in a systematic way.


Why a Psychosocial Working Group Is Necessary

Many organisations attempt to manage psychosocial risks through:

  • Standalone wellbeing initiatives
  • HR-led culture programs
  • Manager training sessions
  • Employee surveys without structured follow-up
  • EAP

While these efforts can be valuable, they often operate in silos. Psychosocial risks, however, are systemic. They arise from job design, workload allocation, role clarity, leadership behaviours, organisational change processes, and reporting systems.

A psychosocial working group ensures:

  1. Cross-departmental coordination
  2. Clarity of roles and responsibilities
  3. Alignment with WHS governance
  4. Evidence-based decision-making
  5. Ongoing monitoring rather than one-off action

Without a working group, organisations risk fragmented efforts, duplication of work, and unclear accountability.


Core Functions of a Psychosocial Working Group

A well-designed psychosocial working group should oversee five key functions:

1. Hazard Identification

The group reviews data sources such as:

  • Risk assessments
  • Incident reports
  • Workers’ compensation claims
  • Turnover data
  • Absenteeism trends
  • Engagement or climate surveys

Importantly, the psychosocial working group focuses not only on severe incidents but also on patterns of cumulative harm.

2. Risk Assessment

Rather than relying solely on likelihood–consequence matrices, the group should consider:

  • Actual harm experienced
  • Frequency of exposure
  • Vulnerable groups
  • Systemic drivers

This approach strengthens compliance and improves practical outcomes.

3. Control Design and Implementation

The working group ensures that control measures are:

  • Organisational (e.g., workload redesign, staffing levels)
  • Preventative rather than reactive
  • Clearly assigned to accountable leaders
  • Time-bound and measurable

Too often, psychosocial risks are “controlled” through resilience training alone. A working group redirects focus toward upstream system improvements.

4. Monitoring and Review

Controls must be evaluated. The working group reviews:

  • Whether exposure has reduced
  • Whether harm indicators have improved
  • Whether new risks have emerged

Psychosocial risk management is dynamic. Organisational changes, restructures, or growth can introduce new hazards.

5. Reporting and Governance

A working group should provide structured reporting to:

  • Senior leadership
  • WHS committees
  • Boards or executives where required

This ensures psychosocial risks receive the same visibility as physical safety risks.


Who Should Be on a Psychosocial Working Group?

A working group must be cross-functional. Typical membership includes:

  • WHS representatives
  • HR leaders
  • Operational managers
  • Health and safety representatives (HSRs)
  • Executive sponsor

Depending on the organisation, it may also include:

  • Legal or compliance advisors
  • Union representatives
  • Data or analytics specialists

The most effective working groups include both decision-makers and those close to operational realities.


Key Principles for an Effective Psychosocial Working Group

1. Clear Terms of Reference

The working group should have documented scope, authority, and reporting lines. Without clarity, it risks becoming a discussion forum rather than a governance mechanism.

2. Defined Decision-Making Authority

The group must know:

  • What it can decide
  • What must escalate
  • Who holds final accountability

Psychosocial risks often intersect with operational pressures. Authority must be explicit.

3. Structured Meeting Cadence

A working group typically meets monthly or quarterly, depending on risk profile. Meetings should be agenda-driven and data-informed.

4. Integrated Data Review

Rather than relying on single data sources, the working group should triangulate information across systems. Patterns often appear when multiple datasets are viewed together.

5. Worker Consultation

Consultation is a legal requirement under WHS legislation. A psychosocial working group must ensure workers are involved in identifying hazards and designing controls.


Common Mistakes to Avoid

Even well-intentioned organisations can undermine their psychosocial working group by:

  • Treating it as a wellbeing committee rather than a WHS governance body
  • Failing to include operational leaders
  • Over-focusing on individual coping strategies
  • Not tracking implementation of agreed actions
  • Allowing discussions without measurable follow-up

A working group should not replace line management accountability. It coordinates and oversees — it does not absorb responsibility from leaders.


How a Psychosocial Working Group Improves Culture

When functioning properly, a working group signals that psychological health is a governance issue, not merely a personal matter.

It:

  • Normalises discussion of psychosocial hazards
  • Encourages early reporting
  • Clarifies systemic drivers of harm
  • Reduces blame-based narratives
  • Supports sustainable organisational design

Over time, this strengthens trust. Workers see that concerns lead to structured action rather than informal reassurance.


Establishing a Psychosocial Working Group: Practical Steps

If your organisation does not yet have a working group, consider the following phased approach:

  1. Secure executive sponsorship
  2. Draft terms of reference aligned to WHS obligations
  3. Nominate cross-functional members
  4. Map existing psychosocial data sources
  5. Establish reporting pathways
  6. Schedule regular review cycles

Early meetings should focus on clarifying scope and reviewing baseline data. Avoid launching with overly ambitious action plans before understanding current risk exposure.


The Strategic Value of a Working Group

Beyond compliance, a working group supports:

  • Reduced injury claims
  • Lower turnover
  • Improved engagement
  • Better operational stability
  • Stronger organisational resilience

Psychosocial risk is not peripheral to performance. It directly influences productivity, safety, and sustainability.

Organisations that treat psychosocial hazards as secondary often experience reactive cycles of crisis management. A working group breaks that cycle by embedding prevention into governance.


Final Thoughts

A psychosocial working group is not simply another committee. It is a structural control measure in itself.

By creating a dedicated, cross-functional mechanism for identifying and managing psychosocial risks, organisations shift from fragmented efforts to coordinated, evidence-based action.

In the current regulatory environment, this is not optional. More importantly, it is one of the most practical ways to build psychologically healthy, high-performing workplaces.

If your organisation is serious about managing psychosocial risk, establishing a working group is a critical first step.