Employ hospitality or retail staff? The most expensive WHS claims are psychosocial, not physical

When you think of safety risks, where does your mind go: construction, manufacturing, hazardous materials?

The latest work health and safety (WHS) data profile from Safe Work Australia doesn’t focus on your sparkies or your forklift operators, but on the baristas, retail assistants, cashiers, market vendors, cooks, bartenders, hairdressers and travel guides.

This industry, known as the sales and service industry, is huge, employing 2.3 million Aussies nationwide. It’s also one of the first industries young Australians are exposed to, with 36 per cent of the industry aged between 15 and 24.

But what are the risks posed to this vital industry, and how can employers make sure that younger workers enter the job market in a safe and compliant atmosphere?

Mental health risk is costly, but is it common?

Hospitality and retail are rewarding but demanding industries. Passionate chefs who love their trade are all too aware of how draining a busy service can be, and how quickly the kitchen can come to a boil with an aggressive or hostile line manager.

This stress is reflected in the Safe Work profile – it shows that sales and service workers are routinely exposed to psychosocial hazards such as bullying, violence and aggression, as well as job design factors including high job demands, low job control and limited support.

Surprisingly, then, mental health-related claims are some of the least common in the industry, with more than half of claims attributed to ‘muscular stress while lifting, carrying, or putting down objects’.

However, this doesn’t mean that employers face low risk for psychosocial safety claims that might stem from workplace bullying, burnout, stress and anxiety, among others.

While fewer psychosocial claims are made, successful claims result in median compensation costs 4.5 times higher than physical – so it only takes one psychosocial claim to pay out more than 4 physical claims.

Most businesses aren’t ready

At a recent Citation HR webinar attended by almost 500 business leaders, we asked about readiness for psychosocial compliance. The results reveal a clear gap between what regulators expect and what most workplaces are actually doing.

Five actions your business can take to build compliance

Creating a work culture and system that effectively spots psychosocial risk before it materialises is key. Here are five steps you can take to start making your workplace safer, healthier and more productive.

Citation Safety

Spotting psychosocial risk before it becomes a claim isn’t guesswork – it’s a system. To reduce risk, strengthen compliance, and support the well-being of your workforce, contact us today.