Australia’s 2025 Thriving Workplace Report: Why Psychosocial Safety Must Be Every Employer’s Priority

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Every year, SuperFriend’s Indicators of a Thriving Workplace survey gives Australia a national pulse check on workplace mental health. In 2025, more than 12,000 workers across all 19 ABS industries shared their experiences. The Report then measures workplace mental health through five domains: leadership, connectedness, safety, work design, capability.

The message is clear: psychosocial safety is now a defining factor in organisational performance, risk, and culture.

‍For employers, this report is not just another research summary. It is a roadmap for compliance, prevention, and long‑term workforce sustainability.

The National Picture: Stagnant Scores, Rising Risks

One of the most striking findings was that the national Thriving Workplace score remains unchanged since 2024. This sends a strong signal that despite increased awareness, significant investment in wellbeing programs, EAPs, mental health training and awareness campaigns - meaningful improvement in psychosocial safety in the workplace has stalled.

The Report confirms that “risk is not evenly distributed” andcontinues to cluster in industries with high exposure to psychosocial hazards, including Retail, Transport, Health Care, and Education. A timely reminder that a one-size-fits-all approach won’t move the dial.

Employers cannot rely on generic wellbeing initiatives or reactive processes. They need to design intentional proactive systems and change processes using targeted evidence‑based action. The reason the scores haven't moved is that most organisations are still treating this as a wellbeing question rather than a governance one. The intervention is happening at the wrong level.

Psychosocial Hazards: The Real Pressure Points

The Report maps its Five Domains directly to the psychosocial hazards outlined in Safe Work Australia’s Managing Psychosocial Hazards at Work Code of Practice. The data shows three hazards consistently poorly managed across industries: workload, change management and recognition.

If these hazards are not managed, they can translate into real harm. As the Report sets out:

“Mental health conditions now account for 12% of serious workers’ compensation claims and have grown by 161% over the past decade.”

Unmanaged psychosocial hazards accumulate into burnout, absenteeism, psychological distress, and turnover. The Report highlights that 45% of workers are at risk of or already burned out, and absenteeism due to psychological distress equates to up to 25 days per worker per year.

It is clear that many managers and HR leaders still don’t realise that these hazards are actually regulated psychosocial hazards under Australian WHS laws. Not because they haven’t been paying attention – but because no one has told them.

This is not just a wellbeing issue anymore, it has become a productivity, safety, and financial risk issue. The legislation has moved, and employers need to be keeping up.

Psychological Safety: Employers Can’t Ignore

One of the strongest insights from the 2025 Report is the central role of psychological safety in the workplace. When workers feel safe to speak up, raise concerns, and seek support, everything improves: performance, retention, innovation, and early intervention.

The Report’s data shows:

• Workers with high psychological safety are 89.9% more likely to stay with their organisation.

• 76.7% of workers who feel safe at work report performing at or near their lifetime best.

• High psychological safety correlates strongly with high scores in Leadership and Connectedness.

As one worker put it:

“Open communication and transparent leadership that values employee input would increase my feeling of psychological safety at work.”

The Report reiterates that psychosocial safety is built through practical, everyday actions and not through grand wellbeing strategies.

Why Act Now

1. Legal compliance is tightening

Psychosocial hazard management a legal obligation. Employers must identify, assess, and control psychosocial risks with the same rigour as physical hazards.

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2. The cost of inaction is rising

Burnout, distress, and compensation claims are increasing. Industries with customer‑facing roles or high workload volatility are particularly exposed.

3. Prevention is more effective than response

The report emphasises that psychosocial hazards are embedded within the Five Domains. When Domains are strong, hazards are naturally reduced. This shifts organisations from reactive harm‑reduction to proactive wellbeing design.

4. Workforce expectations have changed

Younger workers, financially stressed workers, and remote workers show significantly higher distress and burnout. Employers who ignore these demographic realities and don’t take the time to understand the make-up of their organisation, risk losing talent.

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The Bottom Line for Employers

The 2025 Report is a wake‑up call: Australia’s workplace mental health landscape will not improve without targeted, industry‑specific, preventive action.

Psychosocial safety is no longer optional. It is:

·       A legal requirement

·       A cultural differentiator

·       A productivity driver

·       A retention strategy

·       A foundation for thriving workplaces

Employers who invest in psychological safety, quality leadership, and supportive work design will not only reduce harm but they will unlock performance, loyalty, and resilience across their workforce.

By prioritising psychosocial safety, employers can build safer, more supportive environments for all employees. Reach out to speak to us about how we can support your organisation - success@elevateconsultingpartners.com.au.

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