Transforming Psychosocial Risk into a Differentiator Amid Disruption in 4 Steps

In today’s workplace, proactively managing psychosocial risks is essential for protecting employee wellbeing, building trust, and fostering resilient, high-performing teams.

Step 1: Know the risks and their signs

Step 2: Establish a clear framework

Step 3: Reinforce structure with culture

Step 4: Strategize change with psychosocial risks in mind

Step 5: Maintain ongoing dialogue and trust-building

In today’s culture-driven world of work—dominated by conversations about psychological safety, wellbeing, and sustainable job design—most leaders are by now familiar with the concept of psychosocial risks: those factors in the workplace that can negatively impact employees’ mental and physical health.

Yet despite growing awareness, few are taking action: Just 20 percent of organizations conduct regular psychosocial risk assessments, according to a study by Workplace Options (WPO) and the International Institute of Risk and Safety Management (IIRSM).

That gap poses serious consequences. In a world defined by volatility and disruption, proactive psychosocial risk management can be the difference between a workforce that’s engaged, resilient, and high-performing—and one that’s dysfunctional and disengaged. Proactively addressing these risks not only helps maintain the conditions employees need to thrive, but it also signals that they are seen and valued, that their wellbeing is a priority, and that they can come to work feeling confident and secure.

As Mary Ellen Gornick, Consulting Managing Partner at WPO, emphasized during the Workplace Options Center for Organizational Effectiveness’ June 2025 summit, Thriving in Uncertainty: Leadership and Wellbeing in Turbulent Times, proactive psychosocial risk management isn’t just about prevention—it’s also about building trust.

“There is a reputational risk that exists from ignoring psychosocial risks,” she explained. “When employees feel that their work experience isn’t understood or ignored by leaders—when their concerns or suggestions about how the work environment can be improved go unheeded or unsolicited—that can really start to break down trust between those on the front lines and those at the top of the organization, resulting in challenges like burnout, absenteeism, attrition, and eventually, turnover.”

Fortunately, there are steps leaders can take to shift from a reactive to proactive approach to managing psychosocial risks:

Step 1: Know the risks and their signs.

Before organizations can take meaningful action to address psychosocial risks, leaders first need to understand what they are, why they matter, and how they show up in the workplace.

“If you haven’t done this before, it can be daunting,” Gornick acknowledged. “So before diving into assessments or action plans, I recommend leaders familiarize themselves with the risks and the impact they can have on people and the work environment.”

To help organizations cut through the complexity of fluctuating laws and variations in trends by region, sector, or industry, the COE outlines 14 core risks leaders can use as a practical starting point regardless of the context they operate in. These include factors such as job demands and control, role clarity and job security, leadership support, as well as work relationships or dynamics, organizational justice, and change management.

Once leaders know what risks to look out for, they can begin learning how to recognize the signs. Unlike absenteeism or turnover—which Gornick refers to as “metrics” rather than indicators—early warning signs are often less obvious and can be easy to miss.

“The signs often emerge subtly across multiple levels of the organization,” Gornick explained. “You might hear concerns in exit interviews or notice rising conflict in EAP data. Or perhaps your operations and quality team has observed a decrease in the quality of work that’s being produced.”

“Once you understand the nature of psychosocial risks and the hazards they present, you become more attuned to those subtle signals,” she continued. “So, before an employee is absent, you might notice they’re withdrawing from team conversations, contributing less in meetings, or becoming more combative in their tone or behavior—which allows you to act before challenges with burnout or absenteeism start to crop up.”

“That’s why it’s crucial to understand not just what the risks and metrics are,” she stressed, “but also those subtle indicators that managers at every level can recognize as signs of psychosocial strain.”

Starting with this awareness equips organizations to spot issues early and apply targeted solutions—key elements of an effective, proactive response.

Step 2: Establish a clear framework.

Also central to a successful, proactive approach is a clear psychosocial risk framework. This should address key dimensions such as work activity, work relationships, and the work environment—while also accounting for any unique risks specific to the organization’s context, as Gornick recommends.

“Some organizations have adopted ISO 45003, a relatively new standard providing guidance on managing psychosocial risks systemically,” she shared. “This involves regular assessments using validated tools and surveys, and cross-departmental data comparison—such as between HR and health and safety teams—to ensure alignment and consistency.”

While organizations can conduct these assessments internally, Gornick emphasizes the value of partnering with a trusted third party.

“Using a third party is really advisable because it offers a higher level of security,” she explained. “If the information you’re collecting is held outside the organization, people are more likely to feel comfortable participating—and you want a high participation rate, because high participation leads to better insight, which informs a more effective response.”

This is something Carole Da Silva and Noémie Leger, members of the WPO France Consulting team, can attest to:

“Working with an external team brings a level of confidentiality and neutrality that’s essential for building trust,” Da Silva explained in another session. “In our work, we always encourage employees to reach out to us voluntarily—so they feel in control and confident in what they choose to share. We also have a psychologist on duty, which further helps us create that safe space for honest conversation.

“As part of our approach,” Leger added, “we also provide monthly reports summarizing anonymized insights from our interactions with employees. These reports give managers visibility into key indicators—like EAP usage, counseling attendance, issues raised, and perceptions of organizational decisions. We also offer tailored recommendations based on each month’s findings to help managers confidently address identified challenges and support wellbeing.”

With such frameworks and processes in place, organizations gain a clearer view of how psychosocial risks are affecting their teams—allowing them to create a more dynamic, robust response.

Step 3: Reinforce structure with culture.

With a strong framework in place, the next step is operationalization—mobilizing individuals at all levels to bring that model to life.

“When you create a culture where systems are in place and leadership—from the top floor to the team level—is aware of how psychosocial risks impact both the quality of work and the employee experience, you’re in a much stronger position to respond proactively rather than reactively,” Gornick explained.

Such a culture, she argues, requires an emphasis on shared power and distributed decision-making, transparent information flows, and relational accountability—key components that foster trust and equip organizations to effectively anticipate and mitigate risk.

This starts with asking questions like:

• Do employees have autonomy in how they work? Can they co-create priorities or shape workplace norms, instead of having them imposed from above?

• Are leaders at all levels communicative and connected to the reality of frontline employees’ experiences? Is access to information “typical” rather than “exceptional,” so that employees understand what’s going on and don’t have to guess?

• Are people held accountable not through fear-based compliance, but through trust and commitment—supported by regular check-ins, open dialogue, conflict resolution practices, and clear feedback loops?

“You also need to consider whether psychological safety and wellbeing is explicitly recognized as part of your culture,” Gornick emphasized. “If leadership doesn’t prioritize wellbeing and acknowledge the impact of psychosocial risk, it won’t matter. It has to be deeply woven into the fabric of the organization.”

That means moving beyond one-time surveys or annual reviews. As Gornick, Da Silva, and Leger all stress, real insight—and real solutions—come from continuous conversation.

“You have to start really listening to your employees—whether through small focus groups, ERGs, or one-on-one conversations,” Gornick said. “Ask, ‘What gets in the way of feeling safe and supported at work?’ ‘What aspects of our culture contribute to stress?’ When those conversations happen without fear, not only does the environment improve, but you also gain the data you need to drive meaningful change.”

And that kind of change can’t rest on senior leaders alone, Da Silva adds.

“Coordinating with your middle managers, HR teams, employee representatives, and occupational health professionals is essential to designing an approach and communication strategy that truly reaches employees,” she explained.

“Each group brings valuable insights from their daily interactions with employees,” Leger added. “Bringing those perspectives together helps organizations better understand what support is needed—and what actions will help prevent or manage risk.”

“These are the ways trust-based systems take root,” Gornick asserted. “They don’t depend on heroic leaders, but on structures grounded in respect, transparency, and accountability. That’s what makes them sustainable in complex environments.”

Step 4: Strategize change with psychosocial risks in mind.

Ultimately, it’s this ability to withstand complexity or disruption—as Gornick emphasized—that makes a prevention strategy truly effective.

“Psychosocial risks naturally evolve over time—and change itself, whether driven by internal restructuring or external forces, can trigger new risks,” Gornick explained. “That’s why integrating psychosocial risk management into your change strategy is critical.”

Leger agrees, noting that beyond being a legal requirement in many cases, assessing psychosocial risks during change is also key to the initiative’s success.

“In our experience, giving meaning to organizational change, anticipating psychosocial risks, involving prevention stakeholders early, supporting managers, providing ongoing assistance, and communicating clearly and consistently—these are all measures that ensure a successful transformation,” she explained.

“That’s why we believe companies that put people at the heart of their strategy—by carefully considering human and social factors before launching a change project—are the ones most likely to succeed and ultimately build more resilient, agile workplaces.”

By anticipating psychosocial risks before, during, and after any change process, organizations can guarantee a more enduring approach to employee safety and wellbeing—and lay the groundwork for lasting success in an ever-evolving world of work.

Ready to transform psychosocial risks into a catalyst for growth?

Click here to watch the full #2025COEWeek session recordings and gain more insights and practical strategies from Gornick, Da Silva, Leger, and more.