The work environment is evolving rapidly due to several key factors, both internal and external, that are reshaping how businesses operate and how employees experience the workplace (e.g.. their level of psychological safety). 

Here are some major shifts impacting workplace dynamics: 

• Global economic shifts: Inflation, supply chain disruptions and geopolitical conflicts create financial uncertainty 

• Rising cost of living: Employees face increased financial stress, impacting workplace morale and wellbeing 

• Changing consumer behaviours: Organisations must quickly adapt to digital trends and shifting customer expectations. 

• Artificial Intelligence (AI) and automation: AI-driven tools and machine learning are rapidly reshaping job roles, requiring businesses to upskill their workforce while addressing employee concerns about job security 

• Cybersecurity risks: As businesses rely more on digital platforms, data privacy and security concerns are growing and becoming more sophisticated. 

• Greater demand for flexibility: Employees now expect hybrid work, flexible schedules, and better work-life balance where that is possible 

• Wellbeing is a priority: There is an increased focus on mental health, diversity, equity, and inclusion (DEI) initiatives, and psychosocial safety 

• Values driven work: Employees want purpose-driven work, expecting organisations to align with their values. 

• Generational workforce shifts: With younger staff becoming the dominant workforce there are more prominent expectations around leadership, career development and digital communication. 

Change, whether internal or external can be a significant source of stress and anxiety for employees. In New Zealand, workplace stress is a prevalent issue: 

• 42.4% of respondents reported high psychosocial risk, leading to negative outcomes such as job strain and depression (mentalhealth.org.nz)

• 60% of workers experience stress, and nearly one in three experience anxiety (worksafe.govt.nz).

Psychological Safety Climate (PSC) refers to an organisation’s shared belief that it is safe to take interpersonal risks, such as voicing concerns, making mistakes, or offering new ideas without fear of retaliation or humiliation. Building workplace trust is essential for employee wellbeing, as it fosters a supportive and psychologically safe environment.  

In an era of political and geopolitical tensions and workplace pressures, people can become overwhelmed and the strain of trying to distinguish between real threats from irrational fears can build anxiety. People often struggle to shift cognitive biases, sift through misinformation, and manage emotional responses. 

Here’s how people respond and perceive the world: 

a) Cognitive biases 

• Negativity bias: We tend to focus on negative information more than positive, making threats seem larger than they are. 

• Available evidence: Frequently hearing about dangers from media and social media (e.g., terrorist attacks, economic collapse), means we assume it is more likely, even if statistics say otherwise. 

• Confirmation bias: We tune into information and narratives that support our thinking and ignore evidence that contradicts this including people who express an alternative view. 

b) Fight-or-flight emotional response 

• In high-stress environments (e.g., authoritarian regimes and unstable workplaces), people are primed for threat detection, often perceiving threats when they aren’t real. 

a) Influence of political narratives 

• World leaders may amplify or suppress certain threats for political gain (e.g., exaggerating threats to justify military actions or making other far reaching decisions). 

• Social media algorithms often promote sensational content, increasing fear-based narratives. 

b) Fake news and deepfakes 

• Misinformation makes it harder to distinguish real threats from imagined ones (e.g., AI-generated videos showing fake events). 

• Fact-checking and credible sources are crucial for verifying claims. 

Strategies to determine what is real to counteract fear-based perceptions 

Method	How it helps
Fact-checking sources	Verify claims from multiple, credible sources (e.g., academic research, reputable media with facts rather than opinions).
Assessing risk rationally	Look at facts and statistics rather than emotions, being critical about what they are telling us.
Avoiding just one perspective	Exposure to different viewpoints to avoid one-sided fear narratives or those vested interests such as skewed public health research from tobacco companies.
Psychological reflection	Ask: “Is this fear based on evidence or assumption?” ‘ Am I being swayed by other people’s views without really considering my own”
Expert consultation	Listen to professionals rather than unverified social media posts.

It is no wonder that trust within our wider communities is fragile. We are also told to protect ourselves in a world that is changing rapidly and where we need to second guess our natural judgements e.g. scams and untrustworthy people. This sense of mistrust and high alert comes into the workplace. 

• In organisations with low psychological safety, employees may perceive threats (e.g., job loss, retaliation, change) even when managers don’t intend harm. 

• In contrast, a high-PSC environment supports rational risk assessment rather than fear in the way that it communicates and allows for open dialogue, with a space for listening to various views and even enabling people to safely disagree without it impacting on relationships. 

We can support staff and create a place of trust in the workplace through: 

Open communication – encouraging a culture of transparency where employees feel comfortable sharing their thoughts and raising concerns, opinions and even mistakes or asking for help. 

Consistency and reliability – supporting leaders and coworkers to be consistent in their actions and decisions, and where there is change or actions that can’t be given, give good explanations and follow through on commitments and promises. 

Prioritising wellbeing – promoting in action and role modelling and not just words, positive mental health, work-life balance, and wellbeing programmes to help employees manage their stress more effectively. 

Leading with empathy and compassion – employees feel safer expressing concerns and making mistakes when leaders and peers show understanding and kindness and where mistakes are seen as learning opportunities. 

Workplaces can support their staff as they create an intentionally psychologically safe environment as they adhere to some core basics, even through a rapidly evolving environment.   By prioritising trust, transparent and regular communication, and wellbeing, organisations can create resilient, high-trust workplaces that empower employees to navigate change with confidence.  

Learn more: Services for managers