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Psychological Safety Study uncovers worrying trends in workplace stress and conflict
Freya Lucas
Mar 12, 2025
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Workplace Options has released its annual Psychological Safety Study, finding that rising employee stress, escalating political tensions, and increasing performance pressure are reshaping organisations worldwide.
The study’s results reveal how employees, across 18 countries, are struggling in ways that, if left unaddressed, could define the future of work for generations to come.“Company leaders and people managers face an urgent question: Will they create a psychologically safe and engaged workforce, or will they perpetuate a culture of stress and instability?” Alan King, President and CEO, Workplace Options (WPO) said.
“Psychological safety—the belief that employees can express themselves without fear of negative consequences—is no longer just a workplace perk. It is a business necessity.”
Key findings of the study include:
- Workplace stress ranks as the top concern in nearly every country studied.
- Conflict at work is a widespread issue, particularly in China, France, and Japan.
- Performance pressure is rising globally, with employees citing struggles to meet expectations.
The study, authors note, should serve as a wake-up call, particularly in relation to young adults.
If organisations do not prioritise psychological safety now, the next generation are likely to enter a workforce defined by stress, conflict, and disengagement.
With millennials now taking on decision making roles, the opportunity to build a workplace culture defined by trust, respect, collaboration, and wellbeing, they continued, “has never been more urgent.”
Unlike many other surveys of its type, the WPO Center for Organizational Effectiveness Psychological Safety Study is based on real, anonymised conversations between employees and clinicians.
This human-centered approach, authors argue, uncovers “the raw emotions, fears, and challenges employees are feeling—providing business leaders with real insights to drive meaningful change.”
Why are these findings important for ECEC and other business leaders?
Organisations that fail to address psychological safety often experience:
- Higher turnover rates as employees seek workplaces that prioritize their mental health and wellbeing.
- Declining productivity due to unresolved workplace conflicts and stress.
- A disengaged workforce, where employees feel unheard and unsupported.
The findings from Workplace Options’ Psychological Safety Study serve as a critical blueprint for leaders, with the top three concerns of Australian workers being workplace stress, conflict at work and performance issues.
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