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The Hidden (or Overlooked) Hazards Eroding Your Business Performance

You can walk into a room, shake hands, exchange pleasantries, and within minutes of hearing how “everyone respects personal time here” or how “we don’t really suffer from toxic management,” you know there’s something festering under the surface. It’s a pattern I’ve seen more times than I can count: leaders invite me to discuss diagnosing workplace performance or wellbeing risks, only to spend the first half hour explaining how none of those issues apply to them.

It’s part denial, part ignorance. Sometimes they genuinely don’t know. Sometimes they don’t want to know. But while they’re busy convincing themselves everything is fine, psychosocial risks – those subtle but serious threats to mental, emotional, and social wellbeing at work – are quietly doing damage in the background.

These risks don’t always scream for attention. They whisper, erode, and normalize themselves into the culture. Over time, what would once have been seen as unhealthy or even outrageous becomes “just the way things are.” This is not just bad for people – it’s deeply damaging to culture, engagement, and performance. It’s like pouring investment into employee experience with one hand while trying to catch it as it leaks out through invisible cracks with the other.

 

So, what are psychosocial risks?

Psychosocial risks refer to aspects of how work is organized, managed, and experienced that can harm employees’ psychological and social wellbeing, and thus there performance and behaviours at work. These include things like:

• Excessive workload

• Lack of autonomy or role clarity

• Bullying or unfair treatment

• Lack of support from colleagues or managers

• Poor communication

• Value conflict or ethical strain

• Disrespect for boundaries between work and life

• Harassment, bullying or coercion

Left unchecked, these risks can lead to burnout, anxiety, depression, withdrawal, presenteeism, cultural strain, and high turnover. Read: costly and disruptive.

And increasingly, they are a legal risk too. Following Australia’s lead, more countries are implementing regulations requiring employers to identify, assess, and manage psychosocial risks. Failure to do so can mean not only reputational harm – but also real penalties.

So, how do these risks show up in everyday life? To help you recognize them in your own business, here are real examples shared by employees around the world in response to the Reddit prompt, “When did you know it was time to leave your job?”

Let’s explore what they reveal.

 

1. “I remember praying I would get hit by a car…”

“…because I would literally rather break a bone than step into the building again.”

This is not hyperbole—it’s emotional exhaustion at its worst. When someone’s psychological safety is so compromised that physical harm feels like relief, we’re looking at a perfect storm of psychosocial risk: excessive demands, chronic stress, and no meaningful support. This is burnout with nowhere left to go.

 

2. “My manager took full credit for my work…”

“…then was awarded a trip to Las Vegas to present ‘his’ idea. I was gone before he got back.”

This is a clear case of organizational injustice—one of the most corrosive psychosocial risks. When employees feel exploited or unrecognized, trust dissolves and resentment grows.

 

3. “Even on bereavement leave, my manager pressured me to travel…”

“…and couldn’t even respect four days of vacation after years of not taking one.”

Disrespect for personal boundaries is more than just bad manners—it’s a psychosocial hazard. It signals that the organisation prioritizes output over people, even during life’s most difficult moments. This not only erodes loyalty but also directly impacts health and morale.

 

4. “I was called into a meeting about how my hole punch was too loud.”

“A visitor complained, and instead of backing me, my manager asked me to fix it.”

This might seem trivial, but it speaks volumes. When small issues are escalated while larger ones (like workload or wellbeing) are ignored, it reveals a culture of misplaced priorities and micromanagement. It chips away at trust and respect, one petty critique at a time.

 

5. “I had a panic attack at my desk during peak hours.”

“My boss said he didn’t notice.”

Anxiety and panic attacks are often preceded by long-term exposure to psychosocial stressors – constant pressure, lack of control, poor communication. When leaders fail to notice or respond, it becomes not just a health issue but a liability. If your people are having breakdowns at work and no one notices, something is seriously wrong.

 

6. “My boss said, ‘You shouldn’t feel entitled…’”

“…just because you already work here and we know your face.”

That’s how effort-reward imbalance plays out in real life. When employees put in the work but are repeatedly denied progression – or worse, insulted for seeking it – it sends a message that contribution is meaningless. This is how businesses bleed talent and invite disengagement.

 

So why don’t businesses act sooner?

Because they either can’t see it – or won’t. Most of these risks-inducing scenarios unfold quietly: in one-on-one meetings, behind closed doors, or in satellite offices far from head office scrutiny. They slip through the cracks precisely because they’re personal, situational, and often normalized.

But there’s another reason: a culture of protectionism. The belief that “we’re better than that,” “those issues happen elsewhere,” or “our people are tough enough” creates a false sense of immunity. It allows harmful dynamics to go unchallenged – and worse, to become embedded in the way things are done.

But, denial is not a strategy.

If you’re not consciously, consistently, and committedly identifying and addressing psychosocial risks, then yes – you are absolutely at risk.

 

The bottom line

Psychosocial risks don’t just affect health – they affect culture, retention, productivity, and your reputation. And as regulation catches up with reality, the stakes are getting higher. Employees are more vocal, more connected, and more empowered than ever before. If you won’t address the issues, you can bet they will – on Reddit, TikTok, or even in court.

So don’t wait until you’re blindsided by a resignation, a breakdown, or a lawsuit. Start asking the uncomfortable questions now (we can do this for you).

Because when it comes to psychosocial risk, ignorance isn’t bliss – it’s lurking liability.

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