RESEARCH STARTER

Psychologically healthy workplace

A psychologically healthy workplace (PHW) is defined as an environment that actively promotes the mental and emotional well-being of employees while enhancing overall organizational productivity. Unlike traditional workplaces that primarily focus on physical safety, PHWs prioritize comprehensive well-being through policies and programs aimed at fostering resilience, optimism, and self-efficacy among employees. Key components of a PHW include a supportive physical environment that minimizes workplace stressors, health initiatives that promote physical and mental health, and practices that encourage employee involvement in decision-making.

Additionally, PHWs facilitate work-life balance through flexible arrangements and offer opportunities for personal and professional growth. Recognition and appreciation of employee efforts are crucial, as they significantly boost morale and engagement. Effective communication and a culture of respect and fairness are foundational elements that help create a sense of belonging and security among employees. The benefits of such workplaces extend beyond individual satisfaction; they contribute to higher productivity, customer satisfaction, and overall community well-being, making PHWs a vital consideration for organizations aiming to thrive in a competitive landscape.

Full Article

  • TYPE OF PSYCHOLOGY: Community; Consulting; Counseling; Clinical; Health; Occupational; Organizational; Social

Psychologically healthy workplaces are run by companies with infrastructures designed to optimize the health and well-being of their employees while enhancing organizational outcomes. Together, such a focus results in healthier communities and happier, more satisfied employees who want to be stakeholders in their company.

Introduction

In years past, an employee's physical safety at work was the primary focus and the definition of a healthy workplace. A psychologically healthy workplace (PHW) is now understood as an environment that actively promotes mental and social well-being while enhancing organizational productivity. It is a place where employees are protected from harm, feel a sense of purpose and connection, and are empowered to grow. Psychologically healthy workplace models include organizational policies, programs, and leadership behaviors designed to enhance employee well-being (e.g., hope, resilience, optimism, self-efficacy) while enhancing organizational outcomes (e.g., reduced turnover, increased customer service, increased revenue). Together, the results are psychologically healthy social outcomes that benefit us all (e.g., healthier communities, reduced healthcare costs, increased community volunteering).

The concept of psychologically healthy workplaces is not new. In 1994, Cary Cooper and Susan Cartwright argued that many financially healthy organizations were successful because they maintained and retained a workforce characterized by good physical, psychological, and mental health for their employees.

Increased emphasis was placed on creating PHWs during the COVID-19 pandemic. While many businesses closed offices, allowing employees to work remotely during the pandemic, workers faced increased levels of stress and anxiety when those businesses made the decision to reopen their offices, which was often a year or more after the pandemic first started. Providing extra employee support through PHWs helped improve employee well-being as workers shifted back to on-site work. Those supports included implementing new safety interventions such as air filtration systems and continuing to provide and communicate flexible work options.

The American Psychological Association (APA) 2023 Work in America Survey demonstrated the importance of workplace well-being in the post-COVID environment. Survey respondents expressed an expectation for their employers to care about their mental health, and survey results indicated that organizations that effectively met this expectation benefited from lower turnover, increased innovation, and improved customer satisfaction.

Components of a Psychologically Healthy Workplace

In PHWs, the physical environment is constantly being analyzed and modified to impact employee well-being in a positive way by regulating noise, lighting, temperatures, the division of space among employees, and the size of work areas. The environment is also modified to eliminate or drastically reduce the repetitive strain of work tasks that result in carpal tunnel syndrome, low back pain, neck pain, and tennis elbow. Methods used that have the potential to alleviate stress and enhance well-being include services such as easy parking, accessible fitness areas, cafeterias, and the use of ergonomic workstations.

In addition to the physical environment, the presence of health and safety initiatives makes a significant contribution to a healthy workplace. PHWs develop practices that help employees improve their physical and mental health, reduce health risks, and manage stress effectively. Free smoking cessation programs and other health initiatives, including financial management and planning, improved nutrition, weight loss, and stress management, are available to all workers and staff on any shift. Special incentives are sometimes offered to motivate employees to seek healthier lifestyles. Employees are given access to health facilities and health screenings and are provided adequate health insurance, including mental health coverage. By offering an Employee Assistance Program, employees can seek professional assistance to help them address life problems such as alcohol-related issues or bereavement.

Researchers have linked aspects of the psychosocial work environment and relationships at work to the health and well-being of employees and the success of organizations. Careful monitoring and quick adjustments are made in the PHWs regarding the high load and pace required for some employees and doing what they can to minimize the rotation of schedules, night work, and stressors specific to persons in high positions. Efforts are also made to promote an honest sense of job security and to develop the communication skills of persons with poor interpersonal relationships. Consideration is even given to persons whose job focus provides little stimulation and meaning.

Employee involvement refers to initiatives aimed at enhancing employees' involvement in decision-making, job autonomy, and empowerment, which is known to increase job satisfaction and morale. Some examples of employee involvement include self-managed work teams, joint employee-management committees, employee suggestion forums, and continuous improvement teams. In some cases, it includes employee ownership. The result of an increase in employee involvement is increased commitment to the organization as well as increased productivity. It also reduces turnover and absenteeism and enhances the quality of products and services.

PHWs develop programs and policies that facilitate work-life balance. At times, many employees find themselves caught in conflicts between work and their home life. Efforts to help employees improve work-life balance include eldercare benefits, flexible work arrangements, which could include telecommuting or flextime, financial management, and assistance with childcare. During the COVID-19 pandemic, telecommuting policies became even more important as most office workers switched to remote work.

Providing opportunities for employee growth and development improves the quality of employees' work experience and helps them realize their full potential. Employees are able to gain knowledge, skills, and abilities that they can apply to new situations and, in many cases, help them manage stress. Some organizations offer employees opportunities for specific skill training, coaching and mentoring, career development and counseling services, and reimbursement for continuing education courses and college tuition reimbursement. Providing pathways to promotion and career enhancement is another way in which employee satisfaction and employee well-being are enhanced.

Employee recognition is a key factor in all psychologically healthy workplaces. Acknowledging employee efforts and making them feel valued and appreciated significantly increases employee satisfaction, morale, and self-esteem. The acknowledgments are awarded individually and collectively for their contribution to the organization. The recognition can be formal or informal, monetary or non-monetary. Ways to recognize employees include ceremonies and awards, monetary compensation, performance-based bonuses, and pay increases. Potential benefits of acknowledging employees include increased employee engagement and productivity, lower turnover, and retaining top-quality employees.

A key to the success of any workplace is the role of communication in the organization. In PHWs, employees are given ongoing opportunities to provide feedback to management and meet with managers. PHW strategies include developing policies that facilitate openness and transparency and having key organizational leaders lead by example by participating in PHW activities that are visible to employees. Management clearly explains their availability and how to access them. In PHWs, employees have a “stake” in how their company runs and they are proud to be stakeholders.

PHWs invest time and resources in the development of a culture of support, respect, and fairness in the workplace. Such an environment encourages respectful relationships with and among employees, written policies on workplace respect, sensitivity or diversity training for managers, and the use of fair procedures to make workplace decisions. In PHWs, employees are treated with dignity and respect.

The WHO released guidelines on mental health at work in 2022 to give research-based advice on how to support mental health, prevent mental health problems, and help people with mental health conditions work successfully and do well on the job. In the same year, the US Surgeon General released the Framework for Workplace Mental Health and Well-Being, which describes five essential components of workplace well-being:

  1. Protection From Harm: Psychological and physical safety form the foundation of a healthy workplace. Modern PHWs are trauma-informed and proactive. They regularly assess workplace risks and adjust schedules, workloads, and expectations to reduce chronic stress. Employees need to feel emotionally, socially, and physically secure. This means minimizing the risk of harm from overwork, burnout, bullying, discrimination, or unsafe work environments.
  2. Connection and Community: Belonging is vital to health. The Surgeon General highlights social connection as a key buffer against burnout and disengagement. PHWs cultivate the connection through inclusive leadership, team-building, peer support, and intentional culture-building. Even in hybrid or remote contexts, psychologically healthy organizations create opportunities for authentic connection.
  3. Work-Life Harmony: Rather than encouraging employees to balance competing demands, PHWs support harmonizing work and life sustainably, offering flexible work arrangements such as remote work, flextime, and job sharing—alongside cultural norms that encourage employees to use them without fear of penalty.
  4. Mattering at Work: A PHW fosters a culture where employees feel their work and presence matter by recognizing contributions, reinforcing purpose, and creating environments where employee voices shape decision-making. Leaders should give regular, meaningful feedback and communicate how employees’ efforts contribute to broader goals. Employees may also receive a stake in the company.
  5. Opportunity for Growth: According to the APA, growth opportunities are linked to reduced burnout and increased engagement. PHWs provide structured pathways for advancement, learning, and mastery through on-the-job training, access to continuing education, leadership development programs, mentorship, cross-training, and support for tuition or credentialing. PHWs must ensure that growth is accessible to all, not just high-performers or senior staff.

Benefits of a Psychologically Healthy Workplace

Companies that do the work to meet general guidelines for psychologically healthy workplaces improve two important factors: they invest in employees' well-being, and they increase productivity and profits. PHWs report that the quality of employee performance and quantity of organizational productivity stay significantly high and steadily improve. Customers report high satisfaction with how they are treated by company personnel as well as with the quality of products. As a result, profits increase, which benefits everyone, including the “stakeholders.”

Companies considered to be PHWs report an improved ability to attract and obtain top-quality employees. Potential employees learn that their potential employer invests in the well-being of their employees, and they do what they can to reduce stress while increasing job satisfaction. Employees have genuine self-esteem related to their work performance, and there is little absenteeism and turnover. Turnover is a key factor in the stability of an organization and a crucial part of workplace success. Employees are seen as stakeholders and are treated respectfully as the company's most important resource. Psychologically healthy workplaces support healthy and satisfied employees, reduce healthcare costs, and increase the overall well-being of their communities and, arguably, the world. Investing in psychologically healthy workplaces is an investment in employees, but also in stronger communities, more equitable systems, and a healthier society.


Bibliography

Abrams, Allison. "The Value of a Psychologically Healthy Workplace." VeryWell Mind, 13 Nov. 2023, www.verywellmind.com/promoting-mental-health-at-work-4175382. Accessed 28 Mar. 2026.

Coe, Erica, et al. "Returning to Work: Keys to a Psychologically Safer Workplace." McKinsey and Company, 15 July 2021, www.mckinsey.com/industries/healthcare-systems-and-services/our-insights/returning-to-work-keys-to-a-psychologically-safer-workplace. Accessed 28 Mar. 2026.

Cooper, C. L., and S. Cartwright. “Healthy Mind; Healthy Organization—a Proactive Approach to Occupational Stress.” Human Relations, vol. 47, no. 4, 1994, pp. 455–71, doi:10.1177/001872679404700405. Accessed 28 Mar. 2026.

Drayton, Michael. Anti-Burnout: How to Create a Psychologically Safe and High-Performance Organisation. Routledge, 2021.

Grawitch, Matthew J., and David W. Ballard. The Psychologically Healthy Workplace: Building a Win-Win Environment for Organizations and Employees. American Psychological Association, 2016.

“Guidelines on Mental Health at Work.” World Health Organization, 28 Sept. 2022, www.who.int/publications/i/item/9789240053052. Accessed 28 Mar. 2026.

"Healthy Workplaces." American Psychological Association, www.apa.org/topics/healthy-workplaces. Accessed 29 Mar. 2025.

"Mental Health at Work." World Health Organization, 2 Sept. 2024, www.who.int/news-room/fact-sheets/detail/mental-health-at-work. Accessed 28 Mar. 2026.

Moglia, Paul. Psychology & Behavioral Health. 5th ed., Salem Press, a division of EBSCO Information Services and Grey House Publishing, 2023.

Peters, Thomas J., and Nancy Austin. A Passion for Excellence: The Leadership Difference. Random, 1985.

Singh, Sharda, et al. “Workplace Ostracism Influencing Turnover Intentions: Moderating Roles of Perceptions of Organizational Virtuousness and Authentic Leadership.” Acta Psychologica, vol. 243, 2024, p. 104136, doi:10.1016/j.actpsy.2024.104136. Accessed 28 Mar. 2026.

"2023 Work in America™ Survey." American Psychological Association, www.apa.org/pubs/reports/work-in-america/2023-workplace-health-well-being. Accessed 28 Mar. 2026.

"Workplace Mental Health & Well-Being." United States Department of Health and Human Services, 24 Jan. 2025, www.hhs.gov/surgeongeneral/reports-and-publications/workplace-well-being/index.html. Accessed 28 Mar. 2026.

Full Article

  • TYPE OF PSYCHOLOGY: Community; Consulting; Counseling; Clinical; Health; Occupational; Organizational; Social

Psychologically healthy workplaces are run by companies with infrastructures designed to optimize the health and well-being of their employees while enhancing organizational outcomes. Together, such a focus results in healthier communities and happier, more satisfied employees who want to be stakeholders in their company.

Introduction

In years past, an employee's physical safety at work was the primary focus and the definition of a healthy workplace. A psychologically healthy workplace (PHW) is now understood as an environment that actively promotes mental and social well-being while enhancing organizational productivity. It is a place where employees are protected from harm, feel a sense of purpose and connection, and are empowered to grow. Psychologically healthy workplace models include organizational policies, programs, and leadership behaviors designed to enhance employee well-being (e.g., hope, resilience, optimism, self-efficacy) while enhancing organizational outcomes (e.g., reduced turnover, increased customer service, increased revenue). Together, the results are psychologically healthy social outcomes that benefit us all (e.g., healthier communities, reduced healthcare costs, increased community volunteering).

The concept of psychologically healthy workplaces is not new. In 1994, Cary Cooper and Susan Cartwright argued that many financially healthy organizations were successful because they maintained and retained a workforce characterized by good physical, psychological, and mental health for their employees.

Increased emphasis was placed on creating PHWs during the COVID-19 pandemic. While many businesses closed offices, allowing employees to work remotely during the pandemic, workers faced increased levels of stress and anxiety when those businesses made the decision to reopen their offices, which was often a year or more after the pandemic first started. Providing extra employee support through PHWs helped improve employee well-being as workers shifted back to on-site work. Those supports included implementing new safety interventions such as air filtration systems and continuing to provide and communicate flexible work options.

The American Psychological Association (APA) 2023 Work in America Survey demonstrated the importance of workplace well-being in the post-COVID environment. Survey respondents expressed an expectation for their employers to care about their mental health, and survey results indicated that organizations that effectively met this expectation benefited from lower turnover, increased innovation, and improved customer satisfaction.

Components of a Psychologically Healthy Workplace

In PHWs, the physical environment is constantly being analyzed and modified to impact employee well-being in a positive way by regulating noise, lighting, temperatures, the division of space among employees, and the size of work areas. The environment is also modified to eliminate or drastically reduce the repetitive strain of work tasks that result in carpal tunnel syndrome, low back pain, neck pain, and tennis elbow. Methods used that have the potential to alleviate stress and enhance well-being include services such as easy parking, accessible fitness areas, cafeterias, and the use of ergonomic workstations.

In addition to the physical environment, the presence of health and safety initiatives makes a significant contribution to a healthy workplace. PHWs develop practices that help employees improve their physical and mental health, reduce health risks, and manage stress effectively. Free smoking cessation programs and other health initiatives, including financial management and planning, improved nutrition, weight loss, and stress management, are available to all workers and staff on any shift. Special incentives are sometimes offered to motivate employees to seek healthier lifestyles. Employees are given access to health facilities and health screenings and are provided adequate health insurance, including mental health coverage. By offering an Employee Assistance Program, employees can seek professional assistance to help them address life problems such as alcohol-related issues or bereavement.

Researchers have linked aspects of the psychosocial work environment and relationships at work to the health and well-being of employees and the success of organizations. Careful monitoring and quick adjustments are made in the PHWs regarding the high load and pace required for some employees and doing what they can to minimize the rotation of schedules, night work, and stressors specific to persons in high positions. Efforts are also made to promote an honest sense of job security and to develop the communication skills of persons with poor interpersonal relationships. Consideration is even given to persons whose job focus provides little stimulation and meaning.

Employee involvement refers to initiatives aimed at enhancing employees' involvement in decision-making, job autonomy, and empowerment, which is known to increase job satisfaction and morale. Some examples of employee involvement include self-managed work teams, joint employee-management committees, employee suggestion forums, and continuous improvement teams. In some cases, it includes employee ownership. The result of an increase in employee involvement is increased commitment to the organization as well as increased productivity. It also reduces turnover and absenteeism and enhances the quality of products and services.

PHWs develop programs and policies that facilitate work-life balance. At times, many employees find themselves caught in conflicts between work and their home life. Efforts to help employees improve work-life balance include eldercare benefits, flexible work arrangements, which could include telecommuting or flextime, financial management, and assistance with childcare. During the COVID-19 pandemic, telecommuting policies became even more important as most office workers switched to remote work.

Providing opportunities for employee growth and development improves the quality of employees' work experience and helps them realize their full potential. Employees are able to gain knowledge, skills, and abilities that they can apply to new situations and, in many cases, help them manage stress. Some organizations offer employees opportunities for specific skill training, coaching and mentoring, career development and counseling services, and reimbursement for continuing education courses and college tuition reimbursement. Providing pathways to promotion and career enhancement is another way in which employee satisfaction and employee well-being are enhanced.

Employee recognition is a key factor in all psychologically healthy workplaces. Acknowledging employee efforts and making them feel valued and appreciated significantly increases employee satisfaction, morale, and self-esteem. The acknowledgments are awarded individually and collectively for their contribution to the organization. The recognition can be formal or informal, monetary or non-monetary. Ways to recognize employees include ceremonies and awards, monetary compensation, performance-based bonuses, and pay increases. Potential benefits of acknowledging employees include increased employee engagement and productivity, lower turnover, and retaining top-quality employees.

A key to the success of any workplace is the role of communication in the organization. In PHWs, employees are given ongoing opportunities to provide feedback to management and meet with managers. PHW strategies include developing policies that facilitate openness and transparency and having key organizational leaders lead by example by participating in PHW activities that are visible to employees. Management clearly explains their availability and how to access them. In PHWs, employees have a “stake” in how their company runs and they are proud to be stakeholders.

PHWs invest time and resources in the development of a culture of support, respect, and fairness in the workplace. Such an environment encourages respectful relationships with and among employees, written policies on workplace respect, sensitivity or diversity training for managers, and the use of fair procedures to make workplace decisions. In PHWs, employees are treated with dignity and respect.

The WHO released guidelines on mental health at work in 2022 to give research-based advice on how to support mental health, prevent mental health problems, and help people with mental health conditions work successfully and do well on the job. In the same year, the US Surgeon General released the Framework for Workplace Mental Health and Well-Being, which describes five essential components of workplace well-being:

  1. Protection From Harm: Psychological and physical safety form the foundation of a healthy workplace. Modern PHWs are trauma-informed and proactive. They regularly assess workplace risks and adjust schedules, workloads, and expectations to reduce chronic stress. Employees need to feel emotionally, socially, and physically secure. This means minimizing the risk of harm from overwork, burnout, bullying, discrimination, or unsafe work environments.
  2. Connection and Community: Belonging is vital to health. The Surgeon General highlights social connection as a key buffer against burnout and disengagement. PHWs cultivate the connection through inclusive leadership, team-building, peer support, and intentional culture-building. Even in hybrid or remote contexts, psychologically healthy organizations create opportunities for authentic connection.
  3. Work-Life Harmony: Rather than encouraging employees to balance competing demands, PHWs support harmonizing work and life sustainably, offering flexible work arrangements such as remote work, flextime, and job sharing—alongside cultural norms that encourage employees to use them without fear of penalty.
  4. Mattering at Work: A PHW fosters a culture where employees feel their work and presence matter by recognizing contributions, reinforcing purpose, and creating environments where employee voices shape decision-making. Leaders should give regular, meaningful feedback and communicate how employees’ efforts contribute to broader goals. Employees may also receive a stake in the company.
  5. Opportunity for Growth: According to the APA, growth opportunities are linked to reduced burnout and increased engagement. PHWs provide structured pathways for advancement, learning, and mastery through on-the-job training, access to continuing education, leadership development programs, mentorship, cross-training, and support for tuition or credentialing. PHWs must ensure that growth is accessible to all, not just high-performers or senior staff.

Benefits of a Psychologically Healthy Workplace

Companies that do the work to meet general guidelines for psychologically healthy workplaces improve two important factors: they invest in employees' well-being, and they increase productivity and profits. PHWs report that the quality of employee performance and quantity of organizational productivity stay significantly high and steadily improve. Customers report high satisfaction with how they are treated by company personnel as well as with the quality of products. As a result, profits increase, which benefits everyone, including the “stakeholders.”

Companies considered to be PHWs report an improved ability to attract and obtain top-quality employees. Potential employees learn that their potential employer invests in the well-being of their employees, and they do what they can to reduce stress while increasing job satisfaction. Employees have genuine self-esteem related to their work performance, and there is little absenteeism and turnover. Turnover is a key factor in the stability of an organization and a crucial part of workplace success. Employees are seen as stakeholders and are treated respectfully as the company's most important resource. Psychologically healthy workplaces support healthy and satisfied employees, reduce healthcare costs, and increase the overall well-being of their communities and, arguably, the world. Investing in psychologically healthy workplaces is an investment in employees, but also in stronger communities, more equitable systems, and a healthier society.


Bibliography

Abrams, Allison. "The Value of a Psychologically Healthy Workplace." VeryWell Mind, 13 Nov. 2023, www.verywellmind.com/promoting-mental-health-at-work-4175382. Accessed 28 Mar. 2026.

Coe, Erica, et al. "Returning to Work: Keys to a Psychologically Safer Workplace." McKinsey and Company, 15 July 2021, www.mckinsey.com/industries/healthcare-systems-and-services/our-insights/returning-to-work-keys-to-a-psychologically-safer-workplace. Accessed 28 Mar. 2026.

Cooper, C. L., and S. Cartwright. “Healthy Mind; Healthy Organization—a Proactive Approach to Occupational Stress.” Human Relations, vol. 47, no. 4, 1994, pp. 455–71, doi:10.1177/001872679404700405. Accessed 28 Mar. 2026.

Drayton, Michael. Anti-Burnout: How to Create a Psychologically Safe and High-Performance Organisation. Routledge, 2021.

Grawitch, Matthew J., and David W. Ballard. The Psychologically Healthy Workplace: Building a Win-Win Environment for Organizations and Employees. American Psychological Association, 2016.

“Guidelines on Mental Health at Work.” World Health Organization, 28 Sept. 2022, www.who.int/publications/i/item/9789240053052. Accessed 28 Mar. 2026.

"Healthy Workplaces." American Psychological Association, www.apa.org/topics/healthy-workplaces. Accessed 29 Mar. 2025.

"Mental Health at Work." World Health Organization, 2 Sept. 2024, www.who.int/news-room/fact-sheets/detail/mental-health-at-work. Accessed 28 Mar. 2026.

Moglia, Paul. Psychology & Behavioral Health. 5th ed., Salem Press, a division of EBSCO Information Services and Grey House Publishing, 2023.

Peters, Thomas J., and Nancy Austin. A Passion for Excellence: The Leadership Difference. Random, 1985.

Singh, Sharda, et al. “Workplace Ostracism Influencing Turnover Intentions: Moderating Roles of Perceptions of Organizational Virtuousness and Authentic Leadership.” Acta Psychologica, vol. 243, 2024, p. 104136, doi:10.1016/j.actpsy.2024.104136. Accessed 28 Mar. 2026.

"2023 Work in America™ Survey." American Psychological Association, www.apa.org/pubs/reports/work-in-america/2023-workplace-health-well-being. Accessed 28 Mar. 2026.

"Workplace Mental Health & Well-Being." United States Department of Health and Human Services, 24 Jan. 2025, www.hhs.gov/surgeongeneral/reports-and-publications/workplace-well-being/index.html. Accessed 28 Mar. 2026.