Five practical steps small businesses can take to manage people risk

Running a small business means juggling priorities every day. Looking after your people often sits somewhere between urgent and important. It matters, but it can be hard to know where to start.

People risk is about understanding what affects your employees’ ability to do their jobs safely and well. When people's risks go unchecked, they can manifest as injuries, absences, disengagement, or higher turnover.

The good news is you do not need complex programs or big budgets to make progress. These five practical steps follow a simple process that works for Australian small businesses.

What you should know about people's risk

People risk includes both internal and external factors. Internal risks might include workload pressure, limited support or gaps in skills. External risks can involve regulation changes, economic conditions or unexpected events.

In Australia, employers have responsibilities to provide a safe work environment and manage health and safety risks. National guidance on these responsibilities is provided by Safe Work Australia¹.

For small businesses, especially those managing teams across multiple locations or properties, people risk can affect business continuity just as much as financial or operational risk.

1. Understand where your business is today

Before changing anything, take time to understand what is really happening in your workplace.

This does not need to be formal. Start with conversations. Talk to supervisors and team members about what helps them do their jobs well and what gets in the way. Listen for recurring themes such as fatigue, workload, safety concerns or unclear expectations.

This step helps you focus on real issues rather than assumptions.

2. Use the information you already have

Most small businesses already collect useful information, even if they do not think of it as data.

Workers’ compensation claims, incident reports and patterns in sick leave can help identify where issues are occurring. Reviewing this information can highlight areas where controls or processes may need attention. Guidance on understanding workers’ compensation obligations and claims in New South Wales is available through SIRA NSW².

Other states and territories operate similar schemes, although the rules and processes can differ.

3. Choose what to act on first

Once you understand the risks, the next step is deciding where to focus.

Trying to fix everything at once often leads to stalled progress. Instead, choose one or two priorities that align with how your business operates. For some businesses, this may involve physical safety. For others, it may relate to workload, training or access to support.

Keeping priorities realistic makes it easier to track progress and adjust where needed.

4. Plan beyond the short term

Many small businesses plan year to year, but people risk benefits from a longer view.

Rather than large initiatives, think about steady improvements over time. This could include reviewing how work is organised, how managers support their teams or how employee benefits are communicated.

The Australian Government provides practical workplace guidance for small businesses to help employers understand their responsibilities and manage people-related risks through the Fair Work Ombudsman³.

5. Review and adjust regularly

People risk management is not something you complete and move on from.

Workplaces change. Teams grow or contract. New risks emerge. Regular check-ins help ensure your approach still makes sense for your business and your people.

This ongoing review supports safer workplaces, more engaged employees and more consistent operations.

How employee benefits support people's risk

Employee benefits can play a role in managing people risk by supporting employee health, wellbeing and financial security. Access to support services may help employees recover sooner and stay engaged at work.

Marsh supports Australian businesses with employee benefits solutions that align with workforce health and people risk priorities. More information is available on the employee benefits page.

References

1. Safework Australia, “Employer responsibilities: Your rights and responsibilities for health and safety”, https://www.safework.nsw.gov.au/safety-starts-here/safety-support/your-rights-and-responsibilities-for-health-and-safety/employer-responsibilities, accessed 23 January 2026.
2. SIRA NSW, “A Workers Compensation Guide for Employers”, https://www.sira.nsw.gov.au/resources-library/workers-compensation-resources/publications/workers-compensation-policies/workers-compensation-guide-for-employers , accessed 23 January 2026.
3. Fair Work Ombudsman, “Small business and the Fair Work Act best practice guide”, https://www.fairwork.gov.au/sites/default/files/2025-04/small-business-and-the-fair-work-act-best-practice-guide.pdf, accessed 23 January 2026.

LCPA 26/1633