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If You Think Trauma Doesn’t Impact Productivity — Think Again

by Brand Post
October 23, 2025
in Business
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If You Think Trauma Doesn’t Impact Productivity — Think Again
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Opinions expressed by Entrepreneur contributors are their own.

Key Takeaways

  • Trauma-informed leadership is essential, promoting psychological safety and boosting engagement, productivity and innovation within organizations.
  • Effective support for teams coping with collective trauma requires comprehensive manager training, policy review and preparation for future challenges.
  • Adopting trauma-informed approaches in business involves acknowledging trauma’s impact, fostering adaptability and continually evolving managerial strategies.

From political polarization and violence to global instability and environmental anxiety, the world is experiencing increasing collective trauma. What was once considered a niche skill set, trauma-informed leadership has lately shifted from a “nice to have” to a competitive necessity for organizations.

For far too long, employees were told to check their emotions at the door. That era is over. Today, we know organizations that foster a culture of psychological safety see higher employee engagement, productivity and innovation. With employees navigating more personal and professional challenges, leaders need practical tools to support their teams effectively.

But how exactly do you adopt trauma-informed practices without turning your managers into therapists? Keep reading for five practical ways your organization can adopt a trauma-informed approach and lead with both impact and resilience.

Related: Why Trauma Integration Will Give You a Competitive Advantage in Leadership

Acknowledge trauma

Start by acknowledging the role that trauma plays in your employees’ lives, since no one is immune to emotional impact. While trauma is often thought of as personal, our current workforce has been shaped by shared traumatic experiences like workplace violence, the pandemic, economic uncertainty, the environmental crisis and more.

Keep in mind that the goal here is to be trauma-informed, not to become overnight experts in trauma. This means that your organization works to understand how trauma impacts your workers.

Importantly, inaction is a choice. Whether it’s speaking up regarding workplace violence or systematic oppression, your employees will notice when you choose to take action — and when you remain silent.

Invest in manager training

Don’t assume your managers instinctively know what to say or how to deliver difficult messaging. As an executive coach, I’m often surprised by just how uncomfortable many leaders are when it comes to talking about feelings and emotions. Based on the thousands of managers I’ve spoken with, I’ve found that the vast majority genuinely want to help their employees, but they don’t have the tools and aren’t exactly sure what to say.

Provide space for managers to learn best practices, role-play and make mistakes without the high-stakes pressure of a distraught employee in front of them. Equip them with talking points and Q&As to serve as a jumping-off point so they’re not winging it.

This training shouldn’t just be tactical in nature either. Managers also need to focus on their own self-care, as it can be incredibly exhausting to support others while also managing their own responsibilities and mental well-being.

Examine your policies and procedures

Although it’s not the most exciting topic, policies and procedures can either be a place of stress or a source of refuge for employees experiencing trauma. Consider this a call to action to re-examine your policies through the lens of trauma.

I recall when my partner’s grandmother passed away. My partner is Filipino, and his grandmother was the matriarch of his very large family. Yet his employer’s policy didn’t consider her immediate family, and he was originally denied bereavement leave. His manager was able to advocate for a single day off to attend the funeral, but HR still asked for a death certificate.

These seemingly inconsequential policies can have a major impact on your employees’ mental health and recovery. Consider the type of message you’re sending when you set policies and ask yourself whether they truly align with your company’s values.

Be prepared for future trauma

Recognize that trauma is inevitable. It’s part of the human experience. Your employees will experience trauma again. Ask yourself how ready your organization is to respond.

Adopting some (or all) of these strategies will ensure your leaders and organization can respond from a proactive place of intention and resilience rather than a reactive one.

While you can’t predict the next trauma, you can develop a plan to ensure employees feel ready should a traumatic experience occur. This might look like creating a trauma response force, developing communication protocols or building a resource hub for managers.

Related: Unintegrated Trauma: How to Improve Communication by Understanding Stress Responses

Remain open and adaptable

Part of being trauma-informed is being open to making mistakes. Through this process, you may find that your organization isn’t responding the best way to a collective trauma, you may recognize that a policy is no longer serving your company, or you may even need to exit a toxic leader.

Instead of casting blame when this happens, be open to what your employees have to say. Be receptive to change and recognize that it’s part of being a trauma-informed organization.

Employees at all levels, but particularly those leaders with the most power, must be open to learning and relearning as part of their commitment to trauma-informed leadership. This work is constantly evolving, and it will never be finished. You’ve got this!

Key Takeaways

  • Trauma-informed leadership is essential, promoting psychological safety and boosting engagement, productivity and innovation within organizations.
  • Effective support for teams coping with collective trauma requires comprehensive manager training, policy review and preparation for future challenges.
  • Adopting trauma-informed approaches in business involves acknowledging trauma’s impact, fostering adaptability and continually evolving managerial strategies.

From political polarization and violence to global instability and environmental anxiety, the world is experiencing increasing collective trauma. What was once considered a niche skill set, trauma-informed leadership has lately shifted from a “nice to have” to a competitive necessity for organizations.

For far too long, employees were told to check their emotions at the door. That era is over. Today, we know organizations that foster a culture of psychological safety see higher employee engagement, productivity and innovation. With employees navigating more personal and professional challenges, leaders need practical tools to support their teams effectively.

The rest of this article is locked.

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Tags: Business Culturecompany cultureCultureDoesntImpactLeadershipManagementOvercoming traumaProductivityThought LeadersTrauma

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