As of 1 December, new psychological health compliance codes are now enforceable in Victoria – a move that rightly places greater responsibility on employers to address psychosocial hazards in the workplace.
At a recent round table with HR leaders, one theme kept surfacing: we all know “trauma-informed workplaces” are important, but many fear they could get it wrong.
Managers worry about overstepping; HR wonders how to support leaders without expecting them to act like therapists.
This guide is intended to bridge that gap. It equips HR and managers with language, frameworks and practices rooted in research and lived experience, drawing also from international and Australian sources on trauma-informed approach.
NOTE: this is not a replacement for getting the right help and support, this is here to get the conversation started.
The prevalence of trauma and how trauma shows up at work
Before diving into processes, it’s essential to understand how common trauma is, and how it shows up in the workplace:
Up to 75% of Australian adults have experienced at least one traumatic event in their life.
Poor mental health costs the Australian economy AUD $6M per year in lost productivity.
In many workplaces, stressors like bullying, discrimination, or chronic pressure act as “microtraumas” (or known at little t) that compound over time.
When a person carries trauma, past or present, it can affect memory, focus, emotional regulation, interpersonal trust, and how safe they feel in their work environment. Some may “mask” this well, so trauma doesn’t always look obvious.
This is why a trauma-informed workplace is not something we can ignore anymore. It is everywhere.
Big T & Little t: what does it mean?
One of the most useful distinctions managers and HR can hold is between Big T and little t trauma:
Big T Trauma: Major events such as abuse, accidents, war, natural disasters—things widely considered “traumatic.”
Little t Trauma: Cumulative, repeated stressors, microaggressions, exclusion, unresolved conflict, chronic uncertainty.
While Big T can be more noticeable, “little t” events can erode wellbeing over time. People may bring both kinds of trauma into work. Recognising that trauma isn’t always a single dramatic event helps remove stigma and opens the space for more empathetic responses.
Embedding these is not a “checklist” exercise. It requires ongoing commitment, reflection, and iteration.
Supporting managers to lead well
One of the key insights from our round table was this: HR can’t just “know” trauma-informed practice, they must support managers to apply it. Here’s how:
1. Provide framing, language & scripts
Managers often hesitate because they don’t know what to say. Equip them with:
Opening phrases: “I’ve noticed some challenges lately, and I’m here to support you if you’d like to talk”
Listening prompts: “Would you like to share what feels difficult right now?”
Referral language: “You’re not alone, here are some support options (HR, EAP, etc.).”
Managers can’t, and shouldn’t, carry therapeutic burdens. Part of this training is defining boundaries:
Hold space (listen, validate, ask how you can support)
Refer onward (HR, EAP, external clinicians)
Know that asking someone if they’d like to talk is not therapy
As stated by Worksafe Queensland guidelines trauma-informed return-to-work processes: “This approach is not about being a therapist. It’s about taking a human approach… creating a safe space for recovery.”
3. Build psychological safety at team level
Managers can embed trauma-informed principles in their daily interactions:
Normalise pauses or check-ins
Encourage vulnerability (leader models: “I’m having a tough day too”)
Invite feedback on workload, process, support
Create space for team debrief or reflection
Psychological safety has been shown to be more predictive of high-performing teams than any other factor.
4. Use Trauma-Informed policies & HR processes
Managers should not act alone, HR must rewrite policy, process and structure through a trauma lens. This includes:
Grievance / harassment procedures designed to minimise retraumatisation (e.g. fewer repeated recountings, consent to retell, varied formats)
Performance or disciplinary frameworks that account for mental health context
Embedding trauma-informed language in documentation and role descriptions (avoiding language like “claim,” “complain,” or “accused”)
EAP support for all team members (making this known as much as possibel)
By doing this, managers have structural support rather than being the “sole buffer.”
Example of a Trauma-Informed Workplace (fictional)
A manager sees an employee, beginning to take more time off, withdrawing in meetings, and missing deadlines. Rather than waiting until things escalate, they initiated a one-on-one:
“Jessica, I’ve noticed some changes in your workload and presence, no judgments. I want to check in: how are you doing, and is there a way I can support you? If you prefer, we can talk about options or adjustments.”
Jessica didn’t share trauma immediately, but did say she’d been managing stress at home. The manager responded with validation (“That sounds incredibly heavy”) and offered possibilities, reduced deadlines for a fortnight, connecting to HR for options, and letting Jessica choose how she wanted to talk further.
That conversation built trust, prevented escalation, and allowed Jessica to feel seen, and it didn’t require the manager to act as a counsellor.
What HR should track
To ensure lasting impact, HR should monitor outcomes. Suggested metrics include:
Feedback on manager training (confidence, comfort in conversations)
Qualitative feedback: “Do you feel safe to share challenges?”
Trauma-informed organisational change is iterative. Use surveys and feedback loops to refine practices over time.
5 practical steps to help HR & Leadership be more wellbeing centric
1. Roundtable + Listening Session Bring leadership and managers together to surface beliefs, fears, and questions. Use these to co-create the journey.
2. Trauma-Informed Conversation Training Short workshops or role-play that equip managers with scripts, listening practice, and referral confidence.
3. Policy Audit & Revision Review leave, performance, complaints, onboarding documents through a trauma lens (safety, language, flexibility).
4. Embed Check-ins & Team Safety Rituals Weekly or fortnightly team reflection sessions, leader check-ins, safe space norms.
5. Evaluation & Iteration Loop Use surveys and metrics; feedback from managers/employees; adjust training and practices accordingly.
From awareness to practice – start now
HR does not need to wait for perfect conditions to begin. As the round table affirmed, nobody wants to get it wrong, but waiting often means harm goes unaddressed.
By shifting power, providing structure, and equipping managers with care (not clinical burden), organisations can move from well-intended rhetoric to trauma-informed practice.
If you’re ready to begin, you don’t need clinical expertise, just curiosity, humility, and a commitment. Over time, the small changes add up: healthier teams, more trust, and a workplace where everyone can bring their whole selves.
In workplaces across Australia, wellbeing is often addressed in short bursts. A special event here, a wellness morning there, an awareness campaign once or twice a year. While these moments are valuable reminders, they are not enough.
Health and wellbeing challenges don’t follow the calendar. Stress, burnout, chronic illness, and mental health issues affect employees every day, not just on marked occasions. If workplaces only act in recognition of “awareness moments,” they risk missing the bigger picture, and the cost is significant.
The business cost of ignoring wellbeing
Wellbeing isn’t “nice to have.” It’s a business must have. Research shows:
$6 billion – the yearly cost of poor psychological safety to Australian businesses due to lost productivity.
The recovery time for mental health compensation claims is four times longer than for physical injuries.
Up to 9.2% productivity loss – depression reduces workplace output, largely through absenteeism and turnover.
These statistics highlight how unaddressed wellbeing directly affects performance, retention, and organisational success.
When wellbeing is treated as an occasional campaign or awareness day, the results are surface-level. Posters come down, initiatives end, and employees return to “business as usual.”
To truly support employees, and protect long-term organisational health, workplaces must move beyond token gestures into proactive strategies.
Embedding wellbeing into workplace culture
Sustainable wellbeing means placing health into the culture of the workplace. It’s not about one-off programs, but ongoing commitment. Here’s what that looks like:
1. Make wellbeing part of everyday dialogue
Conversations about mental health, chronic illness, or menopause should not feel taboo. Leaders who normalise open, respectful dialogue make it safer for employees to speak up before challenges escalate.
2. Equip leaders with skills
Managers shape workplace culture more than any campaign. Training leaders in active listening, compassionate communication, and stress management equips them to respond effectively and build psychological safety.
3. Offer a diversity of tools
Every employee’s needs are different. Some may benefit from counselling or coaching, while others may respond better to mindfulness workshops, sound healing, or movement-based practices. Providing a variety of options ensures support is relevant and accessible. We have a range of ideas for you.
4. Prioritise prevention over cure
Too often, wellbeing programs are reactive, introduced only after issues have already escalated. By embedding preventative strategies, workplaces can reduce burnout, improve resilience, and catch small problems before they grow.
5. Align wellbeing with business goals
Wellbeing isn’t separate from business performance, it fuels it. Employees who feel supported are more engaged, more productive, and more likely to stay. Positioning wellbeing as a driver of organisational success helps leaders see its value clearly.
What if you don’t do it?
The absence of wellbeing strategies isn’t neutral, it actively undermines workplace culture. Employees facing unaddressed stress or health challenges are more likely to disengage, take extended leave, or exit altogether.
Low psychological safety can silence employees who might otherwise share valuable insights or concerns, reducing innovation and increasing risk. And for leaders, unmanaged stress can erode decision-making, communication, and the ability to guide teams effectively.
Over time, these challenges translate to lost productivity, higher turnover, reputational damage, and increased costs.
Building resilient workplaces
The organisations that thrive will be those that recognise wellbeing as foundational. This means:
Moving beyond short-term initiatives into ongoing, integrated programs.
Recognising wellbeing as both a human and commercial priority.
Equipping leaders to model and manage healthy behaviours.
Creating cultures where employees feel safe, supported, and empowered.
When wellbeing is embedded into everyday practice, the results extend far beyond reduced stress. Workplaces see improved morale, stronger connection, higher retention, and greater overall performance.
Wellness is a business strategy
By investing in proactive approaches, organisations can:
Reduce absenteeism and presenteeism.
Retain talent and reduce costly turnover.
Enhance resilience during periods of change.
Foster cultures of trust, safety, and engagement.
Ultimately, workplaces that prioritise wellbeing don’t just create healthier employees. They create stronger, more sustainable businesses.
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Awareness campaigns will always have their place, but true impact comes when what we acknowledge in those moments becomes part of everyday life at work.
The question for workplaces is not whether wellbeing matters. The question is: what are you doing to make it an everyday priority?
According to the Liptember Foundation’s 2025 report, 1 in 2 Australian women are currently living with a mental health condition. 1 in 4 are facing these challenges at a severe level.