Psychological safety is no longer optional in healthcare practices.
Psychological safety is no longer a “nice to have” in healthcare. It is a legal responsibility under Australian work, health and safety laws, and leaders are expected to actively manage psychological risk.
This shift is already changing how healthcare practices need to think about responsibility. As Kendall Schutz, Founding Director of Nexus Co Solutions, explains.
“For many practices, this requires a different way of thinking about responsibility. Psychological safety has often been treated as a wellbeing or culture issue. Regulators now expect it to be managed as part of how work is designed and overseen.”
What has changed
Practices are expected to take a more deliberate approach to identifying and managing psychological risks in everyday operations.
The emphasis is now on preventing harm before it escalates, rather than responding after burnout or complaints emerge.
For healthcare leaders, this is not about getting everything perfect.
“Regulators are not expecting healthcare practices to eliminate stress entirely,” says Schutz.
“They are expecting leaders to recognise where harm can occur and take reasonable steps to reduce it”.
Why healthcare is particularly affected
Healthcare settings carry a unique combination of psychosocial risk, including:
High workloads and sustained time pressure
Exposure to trauma and distressing situations
Emotionally demanding work
Workforce shortages and capacity strain
Strong hierarchies that discourage speaking up
Together, these factors significantly increase psychosocial risk.
“Psychosocial safety in healthcare does not just affect staff wellbeing. It directly impacts patient safety, retention, reputation, and operational stability. When people are too fatigued or fearful to raise concerns, errors go unreported and risks escalate,” says Schutz.
As a result, healthcare has become a clear focus for psychosocial safety enforcement.
What it looks like in practice
In practice, many healthcare practices struggle with visibility rather than intent.
Regulators are increasingly focused on whether practices can show how psychological risks are identified and monitored in real work settings.
This includes how staff are consulted, how concerns are raised, and how leaders know whether controls are actually working.
“A lack of complaints is not evidence of safety. In healthcare environments, underreporting is common, and practices that rely on silence as reassurance are often the most exposed. ”
Psychological safety is a leadership responsibility
A common misconception is that psychological safety can be fully handed off to HR, policies, or training providers.
Under WHS law; accountability sits with the person conducting the business or undertaking (PCBU). In healthcare, this is typically owners, directors, and senior leaders.
While specialist support can assist with structure and expertise, accountability remains with leadership.
“Psychological safety is shaped by leadership decisions every day”, says Schutz.
“Workload expectations rostering, how mistakes are handles, and whether people feel safe to speak up all come back to leadership behaviour”.
This does not mean leaders must manage everything alone. It does mean they need visibility of risk, appropriate support, and a willingness to act when issues are identified.
The risk of inaction
The cost of inaction is rising. Workforce shortages, burnout, compensation claims, and regulatory scrutiny are placing increasing pressure on already stretched healthcare practices.
At the same time, expectations of healthcare leadership are shifting. Staff want to work in environments where their wellbeing is taken seriously, and patients benefit when healthcare teams feel supported and safe.
“Psychological safety is no longer about being progressive”, says Schutz.
“It’s about meeting your legal obligations and protecting the sustainability of your practice”.
“Australian regulators have already shown they will act where psychological risks are foreseeable and left unmanaged, including cases where serious psychological injury resulted from bullying, excessive workloads, or a failure to intervene early”, says Schutz.
Where these risks are known but not actively managed, scrutiny focuses less on individual behaviour and more on whether leaders had systems in place to identify risk, respond to concerns, and prevent harm from escalating.
Practical first steps for practices
For practices unsure whether they meet current psychosocial safety expectations, the first steps is not to overhaul everything at one.
A practical starting point is to pause and assess:
Where psychological pressure or strain shows up most often in the practice
Whether staff feel safe raising concerns without negative consequences
How workload, rostering, and fatigue are currently monitored
What happens when someone does speak up or struggles
Whether leaders have visibility of risks beyond formal complaints
This type of review creates clarity without blame and helps prevent issues from escalating unnoticed.
Get expert advice
If you are unsure how psychosocial safety applies to your practice, or where your current risks may sit, Nexus Co Solutions can help you assess your obligations and identify practical next steps.
Contact the Nexus team today to start the conversation - connect@nexuscosolutions.com.au.
Alternatively book a call today.