Quick Answer
Why is investing in psychological health and safety training worth it? Psychological health and safety training pays off because it helps prevent the long absences, compensation claims and turnover that psychological harm causes. PwC research for Beyond Blue found effective workplace mental health action returns about $2.30 for every $1 invested. Training also helps employers meet their WHS duty to manage psychosocial hazards and builds a culture where people speak up early.
In this guide
Psychological health and safety is the feeling of security and acceptance in a workplace where individuals feel free to speak up and share their opinions without fear of being criticised or negative consequences.
It has become a buzzword in the business world, and for good reason.
Investing in psychological health and safety training can have a significant impact on long-term business success.
In this blog post, we will explore why psychological health and safety is important and how investing in training can benefit your organisation.
What is psychological health and safety?
The idea of team psychological safety was popularised by Harvard professor Amy Edmondson in a 1999 study.
It refers to the degree to which individuals feel comfortable taking interpersonal risks and being vulnerable in their workplace.
A psychologically healthy and safe workplace is one in which employees feel safe to speak up, ask questions, and make mistakes without fear of negative consequences.
Why is psychological health and safety important?
- Psychological health and safety is important for several reasons. First, it fosters a culture of innovation and creativity. When employees feel safe sharing their ideas and perspectives, they are more likely to come up with new and innovative solutions to problems.
- Secondly, psychological health and safety leads to better teamwork and collaboration. When individuals feel safe expressing their opinions, they are more likely to contribute to discussions and work together to achieve shared goals.
- Thirdly, psychological health and safety has been linked to increased employee engagement and job satisfaction. When individuals feel valued and respected in their workplace, they are more likely to be motivated to do their best work.
- Finally, psychological health and safety can lead to better mental health outcomes for employees. When individuals feel safe and supported in their workplace, they are less likely to experience stress and burnout.
How can psychological health and safety training benefit your organisation?
- Investing in psychological health and safety training can benefit your organisation in several ways. Firstly, it can help to create a culture of openness and trust. By providing employees with the skills and tools to communicate effectively and respectfully, you can create a workplace where everyone feels valued and heard.
- Secondly, psychological health and safety training can improve teamwork and collaboration. By teaching employees how to give and receive feedback constructively, you can create a more cohesive and productive team.
- Thirdly, psychological health and safety training can improve leadership effectiveness. By teaching leaders how to create a psychologically healthy and safe environment, they can better support their teams and create a culture of continuous improvement.
- Finally, psychological health and safety training can have a positive impact on employee retention and recruitment. When employees feel safe and supported in their workplace, they are more likely to stay with the organisation long-term and recommend it to others.
The Business Case in Numbers
The return is measurable. PwC’s research for Beyond Blue found that effective action to create a mentally healthy workplace returns, on average, $2.30 for every $1 invested, mainly through lower absenteeism, less presenteeism and fewer compensation claims. The same research estimated that mental health conditions cost Australian employers at least $10.9 billion a year. Safe Work Australia data shows why the cost of inaction keeps rising.
| What it costs to do nothing | What training can change |
|---|---|
| A typical serious mental health claim involved 34.8 weeks off work in 2023-24 | Managers who spot early signs and act can stop problems turning into claims |
| Mental health conditions made up about 17,900 serious claims in 2024-25 | Staff who know how to raise concerns surface issues while they are still small |
| Harassment and bullying were the leading causes of mental stress claims | Teams trained in respectful behaviour see fewer complaints and disputes |
| Legal duties to manage psychosocial hazards apply to every employer | Training is one of the controls regulators expect to see |
In Australia, psychological health and safety also has a legal meaning: WHS laws require employers to manage psychosocial hazards, such as high job demands, bullying and harassment, so far as is reasonably practicable. For why training matters day to day, see the importance of psychological health and safety training, and for spotting problems in your team, see 5 ways to identify and address psychological health and safety incidents.
Conclusion
In conclusion, investing in psychological health and safety training is important for long-term business success.
By creating a culture of openness and trust, improving teamwork and collaboration, and supporting employee mental health, organisations can reap the benefits of a psychologically healthy and safe workplace.
So, if you want to improve your organisation’s performance, consider investing in psychological health and safety training today.
FAQs
1. Is there a return on investment for psychological health and safety training?
Yes. PwC research for Beyond Blue found that effective action on workplace mental health returns about $2.30 for every $1 spent on average, mainly through lower absence, better productivity and fewer compensation claims. Training is one of the most common actions.
2. What does it cost a business to ignore psychological health and safety?
Costs include long absences, compensation claims, turnover, lower productivity and legal risk. In 2023-24, a typical serious mental health claim involved 34.8 weeks off work, around five times longer than other serious claims.
3. Is psychological health and safety training a legal requirement?
WHS laws do not name a specific course, but they require employers to manage psychosocial hazards and to give workers the information, training and supervision they need to work safely. Training is one of the controls regulators expect to see.
4. Who should complete psychological health and safety training?
Everyone benefits from awareness training, and managers need more depth because they shape workloads, behaviour and how concerns are handled. Our psychological health and safety course for managers covers their role.
5. How do you measure the impact of the training?
Track psychosocial incidents and complaints, sick leave and turnover, staff survey results on speaking up and workload, and the time taken to resolve concerns. Compare results before and after training.
Sources
PwC for Beyond Blue: Creating a mentally healthy workplace, return on investment analysis (2014)
Safe Work Australia: Psychosocial hazards
Safe Work Australia: Key Work Health and Safety Statistics Australia
HRD Australia: Safe Work Australia data on 2025 fatalities and claims (13 Oct 2026)
Last reviewed: October 2026
Read More About Psychological Health And Safety:
- What Are Examples Of Psychological Abuse In The Workplace
- Effective Strategies For Workplace Health And Safety Training
- Why Psychosocial Safety Surveys Are Now A WHS Legal Obligation In Australia
- The Importance Of Psychological Health And Safety Training In The Workplace
- Psychological Health And Safety Training: A Powerful Tool For Creating Inclusive And Diverse Teams
- 5 Ways To Identify And Address Psychological Health and Safety Incidents In Your Team
