Key Strategies to Manage Human Resource Risks in the Workplace

Key Strategies to Manage Human Resource Risks in the Workplace

Managing Human Resource (HR) risks in Australia involves proactive compliance with key legislation, including the Fair Work Act 2009, National Employment Standards (NES), Work Health and Safety (WHS) laws, anti-discrimination statutes, and the Privacy Act 1988. With ongoing reforms—such as criminal penalties for intentional wage theft (effective January 2025), mandatory management of psychosocial hazards (including in Victoria from December 2025), and the right to disconnect—businesses must adopt systematic approaches to mitigate risks like underpayments, discrimination, bullying, unfair dismissal, and psychosocial harm. Effective strategies, drawn from Fair Work Ombudsman (FWO), Safe Work Australia, and best practices, focus on prevention, early intervention, and continuous improvement.

Here are the primary strategies:

• Conduct Regular Risk Assessments Identify hazards (physical and psychosocial, e.g., high job demands, bullying, poor change management) through consultations, audits, and worker feedback. Use tools like Safe Work Australia's codes of practice to prioritise risks and implement controls (eliminate where possible, then minimise).
• Develop and Update Clear Policies and Procedures Create written policies on performance management, anti-bullying/harassment/discrimination, wage compliance, flexible work, and right to disconnect. Ensure alignment with awards, NES, and WHS requirements. Policies should outline reporting mechanisms, investigation processes, and consequences.
• Provide Comprehensive Training and Education Train all staff—especially managers—on legal obligations, recognising hazards (e.g., unreasonable out-of-hours contact), fair processes, and de-escalation. Include topics like wage theft prevention, psychosocial risks, and anti-discrimination. Regular refresher training reinforces a positive culture.
• Ensure Accurate Payroll and Entitlements Management Implement robust systems (e.g., automated software) to track wages, overtime, superannuation (12%+ from July 2025), and classifications. Conduct payroll audits to prevent underpayments and misclassification, reducing wage theft risks.
• Foster Consultation and Open Communication Consult workers on changes, hazards, and policies via meetings, surveys, or health and safety representatives. Encourage early reporting of issues without fear of reprisal, addressing conflicts before they escalate to bullying or adverse action claims.
• Implement Fair Performance and Complaint Handling Processes Use documented, reasonable management actions for underperformance or misconduct. Investigate complaints promptly, fairly, and confidentially. For bullying/discrimination, follow FWO and AHRC guidelines; escalate to Fair Work Commission if needed.
• Monitor, Review, and Continuously Improve Track incidents, trends, and feedback via logs or software. Regularly review controls (e.g., post-incident or annually) and update for legislative changes. Maintain records for compliance evidence during FWO or regulator audits.
• Promote a Positive Workplace Culture Lead by example to build respect, inclusion, and mental health support. Address psychosocial hazards like excessive hours or poor support through workload management and wellness programs.
• Seek External Expertise When Needed Engage HR professionals, legal advice, or tools from regulators for complex issues. For high-risk areas, consider cooperation agreements with FWO for self-disclosed underpayments.

These strategies not only reduce legal, financial, and reputational risks but also enhance employee engagement and productivity. Proactive adoption aligns with the Australian Work Health and Safety Strategy 2023–2033 and helps avoid escalating claims (e.g., unfair dismissal or general protections). Complete Corporate Services specialises in Human Resources support, including risk assessments, policy development, training programs, and compliance audits tailored to Australian laws. We assist businesses in implementing these strategies to create safer, fairer workplaces and prevent issues from arising. Contact us for personalised guidance to strengthen your HR risk management framework.