Work-related stress is a major occupational health and safety (OHS) issue that has industrial relations origins. Aside from the moral and human rights imperatives to improve the corporate climate for worker psychological health (as per psychosocial safety climate, PSC), there are strong economic costs for not doing so. PSC refers to worker perceptions of the corporate safety system to protect and promote workers’ psychological health and wellbeing. It is a leading indicator of working conditions, which in turn affect workers’ health and work engagement. In this study, we estimate the attributable economic cost of low PSC due to sickness absence and turnover. Data were collected from a multinational company using survey at Time 1 (T1) and objective company data (i.e., sickness absence and turnover) after one year (T2). Using regression analysis and a matched sample of 617 responses, PSC was negatively related to future sickness absence. A binomial logistic regression with 1268 respondents (i.e., all responses at T1) showed that PSC was negatively related to future voluntary turnover. An economic analysis suggests that improving OHS via PSC could save an organisation with 5000 employees USD 0.6–2.7 million per year. Building PSC to protect and promote workers’ psychological health is a likely economic saving on organisational productivity.

The study examines the effect of psychosocial safety climate (PSC) and psychological capital (PsyCap) on customer engagement through discretionary service behaviors including adaptive and proactive service behaviors (ASB and PSB). A field study of 56 managers, 513 service employees, and 560 customers in 56 branches of insurance companies was carried out to test a theoretical model using hierarchical linear modeling (HLM7). The results demonstrated that PsyCap and PSC were both positively associated with ASB and PSB at the individual level. The results also showed that an interaction between PsyCap and PSC was related to ASB but not PSB. This suggested that PsyCap and PSC interact in a synergic manner to affect service employees' engagement in ASB, beyond their direct effects. At the branch level, ASB was not associated with customer engagement behavior, but PSB was. Furthermore, PSB mediated the relationship between PSC and customer engagement behavior, although ASB did not.

We conceptualize that psychosocial safety climate (PSC) has a positive effect on employees' safety behavior by reducing their psychological distress. A high-level PSC environment reduces psychological distress by eliminating the employees' need for devoting psychological resources toward safety concerns. This preserves psychological resources to be invested in important behaviors i.e., safety compliance and participation. Data were collected from 190 production workers in the oil and gas industry across three states of Malaysia. Results showed strong support for our hypotheses. PSC was negatively linked with psychological distress. Psychological distress predicted safety compliance and participation and mediated the relationship between PSC and safety compliance/participation. Results suggest that in order to improve safety compliance and participation, management in safety-sensitive industries should pay attention to psychosocial factors in the work environment. The implications of these results for safety interventions and further research are discussed.

In this study, we investigated the prevalence, severity, and organisational factors of risk for psychological injury in a national sample of Australian school teachers, using the Psychological Injury Risk Indicator. We predicted that teachers would report higher levels of risk for psychological injury if working in schools located in rural areas, with a low socioeconomic index, and low psychosocial safety climate. Teachers from across Australia (N = 960) completed an online survey that measured risk for psychological injury and relevant organisational factors. We found a high number of teachers (26%) whose responses showed high risk, indicating the need for professional intervention in order to avoid potentially debilitating psychological injury. Analyses also showed main effects for two organisational factors, indicating that teachers most at risk for psychological injury tended to be employed by schools with low psychosocial safety climate and in areas with a low socioeconomic index. These results highlight the severe levels of work-related psychological injury risk in the Australian teacher population, and the important role for school administration and education departments in maintaining a working environment that supports staff psychologically.

Work stress is widely thought to be a significant problem in the health and community services sector. We reviewed evidence from a range of different data sources that confirms this belief. High levels of psychosocial risk factors, psychological health problems and workers compensation claims for stress are found in the sector. We propose a multilevel theoretical model of work stress to account for the results. Psychosocial safety climate (PSC) refers to a climate for psychological health and safety. It reflects the balance of concern by management about psychological health v. productivity. By extending the health erosion and motivational paths of the Job Demands-Resources model, we propose that PSC within work organisations predicts work conditions and in turn psychological health and engagement. Over and above this, however, we expect that the external environment of the sector particularly government policies, driven by economic rationalist ideology, is increasing work pressure and exhaustion. These conditions are likely to lead to a reduced quality of service, errors and mistakes.