Imagine you supervise a capable but frequently late employee named Jacob. You call him in to discuss it. As you begin, “Jacob, we need to talk about your being late—” he begins arguing about how hard he works and how no one understands him. The outburst lasts several minutes despite your efforts to calm him.
What would you do? Terminate him? Issue a warning? Or pause and try to understand what’s beneath the reaction?
Now add one more layer: what if you knew Jacob’s response was triggered by trauma from his past?
Across every sector—business, government, healthcare, education, manufacturing, human services—leaders encounter employees who are reactive, withdrawn, anxious, or struggling in ways that affect performance and relationships. Increasingly, research shows that trauma-informed and trauma-responsive practices strengthen not only employee wellbeing, but also organizational performance and sustainability.
What is trauma?
Trauma results from exposure to deeply distressing or life-threatening events that have lasting effects on a person’s functioning and wellbeing—mental, physical, social, emotional, moral, or even spiritual. It may stem from abuse, neglect, community violence, household instability, discrimination, serious illness, or other adverse experiences.
Large-scale research on childhood adversity shows that about 60% of U.S. adults experienced at least one traumatic event before age 18, and roughly 25% experienced three or more. Higher exposure correlates with increased risk of chronic health conditions, depression, anxiety, substance misuse, and employment instability in adulthood.
In other words, a significant portion of the workforce is carrying invisible histories that influence how they respond to stress, authority, feedback, conflict, and change.
Trauma is not only individual. Entire communities can experience collective trauma through racism, economic instability, natural disasters, violence, or public health crises.
The COVID-19 pandemic dramatically amplified behavioral health challenges nationwide. From 2019 to 2021, online mental health screenings increased sharply. In 2021 alone, more than 5.4 million people completed a screening—nearly a 500% increase over 2019. Rates of severe anxiety, depression, and PTSD rose significantly.
Collective trauma often compounds prior trauma. It is unrealistic to assume employees leave these experiences at the door when they arrive at work.
What happens when trauma in the workplace goes unrecognized?
Five risks stand out:
- Erosion of Trust – Without trust among colleagues and leadership, engagement, innovation, and performance decline.
- Disproportionate Reactions – Trauma responses can be triggered by routine workplace stressors.
- High-Stress Environments Intensify Impact – Fast-paced sectors can activate unresolved trauma, increasing burnout.
- Higher Turnover – Chronic stress can lead to disengagement and costly attrition.
- Re-traumatization – Rigid, punitive, or inconsistent systems may unintentionally deepen mistrust, which can result in re-traumatization.
What are trauma-informed practices?
The Substance Abuse and Mental Health Services Administration (SAMHSA) of the federal Department of Health and Human Services outlines six principles that translate well beyond clinical settings and can be adapted to any workplace:
- Safety – Employees feel physically and psychologically safe.
- Trustworthiness and Transparency – Decisions are communicated clearly and honestly.
- Peer Support – Team connection is encouraged
- Collaboration and Mutuality – Leaders invite shared problem-solving.
- Empowerment, Voice, and Choice – Employees have meaningful input.
- Cultural, Historical, and Gender Awareness – Organizations recognize the impact of systemic bias and inequity.
These principles strengthen accountability by pairing clear expectations with psychological safety. Employees perform best when they feel respected and understood.
Trauma-informed leadership is not about therapy at work. It is about understanding how stress affects human behavior and designing systems that reduce unnecessary harm.
Organizations that cultivate psychological safety see stronger collaboration, improved retention, and greater adaptability during change. In a labor market where employees increasingly prioritize wellbeing and culture, trauma-responsive workplaces have a competitive advantage.
Experts predict that the behavioral health impacts of the pandemic will reverberate for years. Sustainability depends not only on strategy and revenue, but on the resilience and engagement of the workforce.
Returning to Jacob: rather than reacting immediately with discipline, you might begin with curiosity, asking him:
What happened just now?
What support would help you meet expectations?
Accountability still matters. Standards still matter. But when leaders balance clarity with empathy and structure with transparency, they create workplaces where people can perform at their best.
Caring for staff is not soft leadership. It is strategic leadership.
About the Author: Inga James, MSW, PhD, President/CEO & Principal Consultant, Organizational Renewal Group, LLC
Dr. Inga James is a seasoned social worker and organizational psychologist with over three decades of leadership experience in the nonprofit sector. She has a distinguished track record of guiding both start-up and transitioning organizations through critical periods of growth, transformation, and sustainability.
Most recently, Dr. James served as Executive Director of Heartly House, an organization providing comprehensive services to survivors of intimate partner and sexual violence, human trafficking, and child abuse. Under her decade-long leadership, the organization expanded significantly, growing from a $1.4 million to a $6 million annual budget and broadening its impact across the region. Earlier in her career, she successfully led several nonprofits away from the brink of closure, stabilizing and revitalizing them through strong executive and board leadership.
With master’s and doctoral degrees in social work and organizational psychology (respectively), Dr. James brings a rare blend of clinical insight and organizational strategy to her work. She is especially passionate about using her skills to support mission-driven organizations as they grow, evolve, and deepen their impact.
Phone: 301-678-9478
email: inga@renewalgroupllc.com
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