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The Ataraxy Blog

Middle managers are the pressure point for workplace law interactions

27/4/2025

 
AF: “Middle managers are the pressure point for workplace law interactions” 
A couple of weeks ago, at a business forum on employment risks [thanks to Cutcher Neale, Jenkins Legal and AoN], I left with one burning question: Why would anyone employ people at all? 
Yes, plenty of businesses do treat employees terribly. Yes, there are legal and moral obligations to provide safe workplaces. But the tsunami of new legislation has made it increasingly risky – and costly —especially for smaller businesses without HR departments or established policies. 
Today's target: the newly legislated obligation to provide psychosocial safety. 


At first pass - WTF? 
Looking closer, the intent becomes clear: 
  • Supporting an employee injured in a traumatic work event? Makes sense to not put them immediately back into the machine that bit them. 
  • Curbing leaders who think shouting and bullying gets results? Absolutely. 
  • Addressing workplaces with crushing, unrealistic pressures? Sure. 
But here's where it gets messy. All these examples exist on a spectrum influenced by countless factors—not just workplace conditions. You're responsible for ensuring psychological safety in an environment where humans you can't directly control manage other humans you have even less control over. Culture does the heavy lifting here, for better or worse. 


What does "psychologically safe" actually mean? 
People arrive at your workplace with vastly different mental resilience. One person shrugs off the rude and obnoxious, while another crumbles when asked about their performance. 
People also bring their entire lives to work—complete with personal contexts, belief systems, and traumas that shape their psychological safety and resilience. 
Don't misunderstand—I value mental health deeply. My entire business revolves around developing emotionally fit leaders who prioritize their team's mental wellbeing as a strategy for success. 
This shift demands businesses apply the same rigorous risk management thinking to psychosocial safety that they use for physical safety. No more dismissing poor leadership as "being direct" or writing off incidents as "shit happens." 


The Middle Manager Pressure Cooker 
One statement from the forum by speaker Tereska Zai [AoN insurance] hit home for me; 
"Middle managers are the pressure point for workplace law interactions." 
Bang on!  These managers deal daily with an array of personalities showing various levels of emotional robustness. They face pressure to deliver but may lack training in effectively influencing people or navigating difficult conversations. 
The data is sobering. Alyce Stones [Cutcher Neale] presented evidence that mental health claims have more than doubled over the past decade. The average claim costs over $72,000 in 2023/4, meaning a SME business with just 2-3 claims spends around $200,000 annually. 
Even more alarming: productive time lost from mental health claims averages 37 weeks—nearly a full work year. 
​


The 10% Solution 
What if middle and senior managers were just 10% more emotionally mature and capable of respectful, calm interactions with their teams? How much would that reduce workplace mental health claims? 
What if employees were just 10% happier in their own skin? What difference would that make? 
What if these costs—both explicit and hidden—could be halved by improving people's emotional fitness? Wouldn't that be worth investing in? 
Emotional fitness (aka happiness) has always been a smart business strategy. Now it's also a crucial risk mitigation strategy—the fastest way to cutting through the noise and getting things done. 
 

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