The world of work is changing and there is a growing uncertainty about how business should manage human risks. Physical risk management has been legislated for some time and while challenges still exist, the cost to business of not managing these risks remain high.

On the other hand, there appears increasing uncertainty about how to manage human risks – particularly of a psychosocial nature. A great deal of that uncertainty can be resolved by monitoring the human risks. We need to constantly work at mitigating all types of risks in the workplace. But how?

Do not be caught in the shadow of inaction as this will ultimately become costly.

Risk Mitigation

‘What gets measured… gets improved.’

This quote works well for the obvious physical risks but how does one measure psychosocial risk? It is not easy. However, if you use the same instrument to create your business’s benchmark and to track the impact of any intervention, then you at least have a standard or reference point to measure against. It is a great start.

Mitigating any risk in the workplace has traditionally and quite rightfully, been driven by safety and prevention of injuries and accidents. A core metric in the health and safety world is total reportable injury frequency rate (TRIFR). The work Optimum has completed with a large national mining services company has helped to reduce their TRIFR rate from 12.8 to 2.8, demonstrating a direct benefit of having an integrated health and wellbeing program in the organisation and how it impacts a known metric in the industry.

We are deemed to be managing physical risks and yet it still costing businesses billions of dollars. The fear is that the element of psychosocial risk is far from managed, and the costs are deemed to be significantly higher than those linked to physical risks. The tsunami is coming and is your business prepared for this escalation in costs to the business?

Head Health has a profound impact on the workforce as does Heart Health.

Stanford University report that work is the biggest stressor in the USA. 60% of employees report that they have a poor work/life balance. Data from the UK indicates 50% of workdays lost are related to stress, anxiety and depression. This equates to 26.8 million lost workdays.

In Australia, mental health matters represent 8% of serious workers compensation claims. Compounding this even further, PwC estimate absenteeism associated with mental health conditions costs Australian business $4.7 billion per year.

Optimum’s data from Aussie workforces, using a structured intervention and standardised reporting tool, reported a 14% reduction in stress levels across the workforce over two years. In addition, 2 lives were saved from suicide and a growing percentage of the workforce moved into the low-risk zone for depression, anxiety and stress. Risks can be mitigated, and we have over 250,000 data points to support these findings.

In addition to Head Health benefits, implementing a health and wellbeing program can greatly reduce the risk of cardiovascular disease across the workforce, the primary killer of Australians. This significant physical health change must improve the overall psychosocial profile of the workforce. Heart Health data indicates a 36% increase in those moving to the low-risk category for cardiovascular disease after following a structured intervention and support program.

Sleep quality and quantity impacts workers and workplace safety.

As well as impacting on workplace physical safety, sleep deprivation has a profound impact on psychosocial health.

Mitigating human risks like sleep quality and quantity, impacts individuals and ultimately the business. The most recent Australian data suggests of the 194 fatalities at work, 41% were a result of vehicle collision. It does not take much to conclude that lack of good quality sleep and driving, while sleep deprived could have played a role in these tragedies.

Health and Wellbeing Programs induced a 40% reduction in sleep quality risks.

Traditionally, sleep and fatigue have not always been in the front line of risks, let alone linked to psychosocial risks. Yet this situation is changing fast as sleep deprivation and subsequently fatigue is identified as primary risks in a great number of physical and psychosocial events and accidents.

Improving all aspects of sleep mitigates risks, accidents and poor performance, presents a substantial saving to the organisation. The bonus of better sleep is individuals perform at a higher and more competent level. Everyone benefits from managing this risk better.

If you wish to know if these risks are prevalent in your workplace, then we can work with you to identify and mitigate these risks. Just contact us at admin@optimumhms.com.au.