A practical guide for small to medium business owners and managers.
Workplace stress can be an early warning sign that something in your business needs attention. When employees become withdrawn, take more sick leave or experience increasing workplace conflicts, it is worth examining whether their working conditions may be contributing to the problem.
For small to medium business owners, recognising these warning signs is an important part of managing workplace health and safety. Although workplace stress can have many causes, the way work is organised, managed and performed may contribute to psychological or physical harm.
Common workplace hazards include excessive workloads, inadequate supervisor support, unclear responsibilities, poorly managed workplace changes and ongoing workplace conflict.
Recognising these issues early can help businesses identify potential psychosocial hazards and take practical steps to improve working conditions.
In this article, we explore five warning signs of workplace stress and explain how business owners can identify underlying psychosocial hazards and manage workplace risks.
Stress Is a Warning Sign, Not the Hazard
Stress is a response people may experience when demands exceed their ability or resources to cope.
It can be influenced by personal circumstances, workplace conditions or a combination of factors.
However, under Australian work health and safety (WHS) legislation, employers need to identify and manage psychosocial hazards arising from work.
Psychosocial hazards are aspects of work design, the working environment, workplace interactions or the way work is managed that may cause psychological or physical harm.
Common examples include:
1. High job demands: Employees consistently have too much work, unrealistic deadlines or insufficient time to complete tasks.
2. Low job control: Workers have little influence over how they perform their duties or organise their workload.
3. Poor support: Employees lack adequate guidance, resources, training or assistance from supervisors.
4. Role confusion: Workers are unclear about their responsibilities, priorities or who they report to.
5. Poorly managed change: New systems, rosters or reporting arrangements are introduced without adequate consultation.
6. Workplace conflict: Ongoing interpersonal issues, bullying, harassment or unreasonable behaviour are not effectively addressed.
7. Exposure to aggression: Employees regularly deal with abusive customers, clients or members of the public.
These hazards can exist in any business, regardless of its size.
Importantly, several hazards may interact. For example, high workloads combined with inadequate staffing and poor supervisor support can create greater risks than any one of these conditions alone.
Understanding the potential causes of workplace stress means looking beyond individual symptoms and examining the conditions in which employees work.
Five Warning Signs of Workplace Stress Every Business Owner Should Recognise
You do not need to be a psychologist to recognise that something may be changing in your workplace.
You do, however, need to pay attention to the information available to you.
Recognising the early warning signs of workplace stress can help business owners identify potential psychosocial hazards before problems escalate.
1. Increasing Absenteeism
Have you noticed more frequent sick days, particularly within one team or department?
Absenteeism does not automatically indicate a psychosocial hazard, but changes in attendance patterns may warrant further investigation.
Ask yourself:
- Have workloads increased recently?
- Have staffing levels changed?
- Are employees experiencing difficulties with their rosters?
- Have management arrangements or workplace responsibilities changed?
Reviewing these patterns may help identify workplace conditions that need further attention.
2. Changes in Employee Behaviour
An employee who was previously engaged may become quiet, frustrated, irritable or less willing to participate.
These changes may have many causes, and managers should avoid making assumptions about someone’s mental health.
Instead, consider whether workplace stress or changes in working conditions may be contributing to what you are observing.
Ask yourself:
- Has the employee’s workload increased?
- Are their responsibilities clear?
- Are they receiving adequate support?
- Have there been changes to their working environment?
Approach employees respectfully and provide opportunities for them to discuss workplace concerns privately.
3. Increased Complaints or Workplace Conflict
You may notice more disagreements, complaints about fairness, concerns about supervisors or frustration about how work is allocated.
Rather than treating every complaint as an isolated interpersonal issue, consider whether there is a common underlying workplace problem.
For example, employees may be frustrated because responsibilities are unclear, workloads are distributed unfairly or management decisions are communicated poorly.
Ask yourself:
- Are responsibilities clearly defined?
- Are employees receiving adequate support?
- Are workloads being distributed fairly?
- Are workplace complaints being addressed appropriately?
Repeated complaints may indicate that workplace conditions require closer examination.
4. More Mistakes, Incidents or Reduced Performance
When employees are overloaded, fatigued or distracted by workplace pressures, mistakes and safety incidents may become more likely.
This is particularly concerning in workplaces involving vehicles, machinery, manual handling or customer-facing activities.
Changes in performance should not automatically be attributed to workplace stress. However, they may provide useful information when considered alongside other workplace indicators.
Ask yourself:
- Do employees have enough time to complete their tasks?
- Are staffing levels adequate?
- Do workers have the necessary resources and training?
- Are employees able to take their scheduled breaks?
Addressing these questions can help businesses identify potential risks and improve working conditions.
5. Employees Stop Speaking Up
One of the more concerning signs can be silence.
Workers may stop raising concerns because they believe nothing will change, fear negative consequences or do not feel comfortable approaching management.
A lack of complaints does not necessarily mean that a workplace is free from hazards.
Business owners should consider whether employees feel safe sharing feedback and whether previous concerns have been addressed.
Ask yourself:
- When did I last genuinely ask employees about their working conditions?
- Do workers feel comfortable reporting hazards?
- Are concerns addressed promptly?
- Do employees receive feedback about the actions taken?
Creating an environment where workers can speak openly is an important part of identifying and managing psychosocial risks.
A Practical Example: A Busy Registered Club
Consider a registered club employing 35 people.
Over several months, management notices increasing sick leave, complaints about rosters and tension between gaming and bar staff.
Initially, the issues are treated separately.
One employee receives performance counselling. Another is reminded about attendance expectations. Supervisors are encouraged to improve communication.
However, a closer review identifies several workplace conditions:
- Staffing levels have not increased despite higher customer numbers.
- Employees regularly miss scheduled breaks during busy periods.
- Supervisors are covering additional operational duties.
- Rosters are changed with limited notice.
- Staff report receiving little support when dealing with aggressive patrons.
The problem is not simply that employees are experiencing workplace stress.
The underlying psychosocial hazards include excessive job demands, inadequate support, poor organisational change management and exposure to customer aggression.
These hazards require practical workplace controls.
Management could:
- Review staffing requirements during peak periods.
- Improve roster planning and provide reasonable notice of changes.
- Ensure employees can take appropriate scheduled breaks.
- Clarify supervisor responsibilities.
- Strengthen procedures for responding to aggressive patrons.
- Consult employees about the effectiveness of these changes.
This approach addresses the working conditions that may be creating the risk rather than focusing solely on individual employees.
How to Manage Workplace Stress and Identify Psychosocial Hazards
Managing psychosocial hazards does not need to involve expensive consultants, complicated surveys or lengthy reports.
For many small businesses, the starting point is information they already have.
The following steps can help business owners identify potential workplace risks and take practical action.
Step 1: Review What Your Business Is Telling You
Look for patterns across five key areas.
| Area to review | What to look for |
| Workloads | Overtime, missed breaks, unrealistic deadlines and unfinished work |
| Staffing | Vacancies, turnover, insufficient coverage and reliance on particular employees |
| Complaints | Repeated concerns about supervisors, rosters, customers or workplace behaviour |
| Absenteeism | Changes in sick leave patterns and recurring absences within teams |
| Worker feedback | Concerns raised during conversations, meetings, surveys or toolbox talks |
Look at patterns over time rather than focusing on one employee or one incident.
Handle personal information confidentially and only share it with those who need it.
The purpose is to identify potential workplace issues, not to make assumptions about an individual’s personal circumstances or mental health.
Step 2: Talk to Your Workers
A simple conversation can identify issues that may never appear in a formal incident report.
Consider asking:
- Do you generally have enough time and resources to complete your work safely?
- Are your responsibilities and priorities clear?
- What makes your job unnecessarily difficult or stressful?
- Do you receive the support you need from your supervisor?
- Is there anything we could change to make your work safer?
Consultation should give workers an opportunity to raise concerns, have their views considered and receive feedback on decisions.
Importantly, consultation is not simply sending out a survey. It involves listening, considering the information and taking appropriate action.
Employees should also understand how they can raise concerns and what will happen after they do so.
Step 3: Identify the Actual Hazards
Once you have reviewed the information and consulted workers, determine which workplace conditions may be creating risks.
For example:
Observation: Three employees report feeling overwhelmed during afternoon shifts.
Possible hazard: Inadequate staffing during peak periods creates high job demands.
Potential controls: Review staffing levels, redistribute tasks, adjust schedules and ensure employees can take appropriate breaks.
Review: Check with employees after the changes to see whether workloads are manageable.
The important distinction is that you are not simply recording “employee stress” as the hazard.
You are identifying and managing the workplace conditions that may be causing harm.
This approach makes workplace stress a starting point for investigation rather than the only issue being addressed.
Step 4: Record and Manage the Risks
Significant psychosocial hazards should be assessed and managed through the business’s normal WHS risk management processes.
A psychosocial risk register can help record:
- The identified hazard and workers who may be exposed.
- The circumstances creating the risk.
- Existing control measures.
- Additional controls required.
- Who is responsible for implementing actions.
- When the controls will be reviewed.
A risk register is a useful management tool, but recording a hazard is not the same as controlling it.
The important outcome is safer working conditions.
Businesses should also ensure that identified actions are assigned to responsible people and completed within appropriate timeframes.
Step 5: Follow Up and Check Whether Things Have Improved
After implementing controls, speak with affected employees and review the relevant workplace information.
Consider the following questions:
- Have complaints reduced?
- Are employees taking their scheduled breaks?
- Are workers receiving better support?
- Are workloads more manageable?
- Have the identified risks been reduced?
If the problems continue, review whether the controls are adequate and consider what further action may be required.
Psychosocial risk management should be an ongoing process, not a once-a-year exercise.
Regular reviews help businesses determine whether their actions are effective and whether additional controls are necessary.
Supporting Employee Mental Health Is Important, but It Is Not Enough
MMany businesses have introduced valuable initiatives such as mental health awareness training, employee assistance programs, wellbeing activities and mental health first aid.
These initiatives can help employees recognise concerns and access support.
However, they do not replace the employer’s responsibility to manage psychosocial hazards.
For example, offering resilience training will not resolve a workplace where employees are routinely expected to complete unreasonable workloads.
Similarly, encouraging staff to speak up is unlikely to be effective if concerns are repeatedly ignored.
Addressing workplace stress requires more than individual wellbeing initiatives. Businesses should also examine the working conditions that may contribute to stress and implement appropriate risk controls.
Supporting individual wellbeing and managing workplace risks are both important, but they serve different purposes.
Effective prevention starts with examining how work is designed and managed.
By addressing the underlying causes of workplace risks, businesses can take a more proactive approach to protecting their workers.
How CIRT Can Help Businesses Manage Psychosocial Risks
At CHD Partners, we understand that small to medium businesses need practical systems that help them manage their responsibilities without creating unnecessary administration.
CIRT supports businesses through tools such as:
Psychosocial Risk Register: Identify hazards, record controls, allocate responsibilities and review risks.
Worker Consultation and Toolbox Talks: Record workplace discussions, concerns raised by employees and agreed actions.
Incident and Hazard Reporting: Capture information that may indicate emerging psychosocial hazards.
Monthly WHS Tasks: Prompt managers and supervisors to regularly review workplace conditions and take practical action.
By bringing these activities together, businesses can develop a more consistent approach to identifying, managing and reviewing psychosocial risks.
These processes can also help businesses document their risk management activities and monitor whether actions have been implemented.
The objective is not simply to demonstrate that paperwork has been completed. It is to support safer workplaces and provide evidence of the steps taken to manage risks.
If your business needs support with workplace health and safety, contact CHD Partners to discuss your requirements and learn more about available support.
Your Action This Month: Look Beyond Workplace Stress
Set aside 30 minutes to review your business.
Look at workloads, staffing levels, complaints, absenteeism and feedback from workers.
Consider whether there are patterns that suggest workplace conditions may be contributing to employee stress.
Speak with your supervisors and workers. Identify any hazards, consider appropriate controls and record the actions you intend to take.
For example, you may discover that reviewing staffing levels during busy periods, improving communication or clarifying responsibilities could help address an identified workplace risk.
Once changes are implemented, follow up with employees to determine whether the changes have improved their working conditions.
You may discover that a relatively simple operational change could make a meaningful difference.
Final Thoughts on Workplace Stress
Small business owners are often close to their employees. They notice when someone is not themselves, when morale drops or when a team is struggling.
That awareness is valuable, but recognising workplace stress is only the beginning.
The next question should be:
“Is there something about the way we organise, manage or perform work that could be contributing to this problem?”
By asking that question, listening to workers and taking practical action, business owners can move beyond recognising stress towards preventing workplace harm.
Managing workplace stress starts with understanding its potential causes. By reviewing working conditions, consulting employees and addressing psychosocial hazards, businesses can take practical steps towards a safer workplace.
Because managing psychosocial risks is not just about helping people cope with difficult working conditions.
It is about making those working conditions safer in the first place.
Need support managing workplace health and safety risks? Contact CHD Partners to discuss how your business can improve its approach to identifying and managing workplace risks.
Michael Huggett
CHD Partners
Contributing to a Safer Community
Australian References and Further Reading
- SafeWork NSW — Code of Practice: Managing psychosocial hazards at work. Guidance on identifying hazards, assessing risks, consulting workers and implementing controls.
https://www.safework.nsw.gov.au
- Safe Work Australia — Model Code of Practice: Managing psychosocial hazards at work (2022). National model guidance on managing psychosocial risks.
https://www.safeworkaustralia.gov.au
- Work Health and Safety Act 2011 (NSW) — Primary duty of care under section 19 and worker consultation duties under sections 47–49.
- Work Health and Safety Regulation 2025 (NSW) — NSW regulatory requirements for managing psychosocial risks, alongside general WHS risk management duties.
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