Workplace Trauma: What Every Business Owner Needs to Know
- Updated: February 26, 2025
Hi there! I’m Denise G Lee, a healing and leadership coach. My job is to help you and your business overcome challenges. One big issue that’s often ignored is workplace trauma. As a leader, you may just want to keep your head down and just focus on that bottom line. However, ignoring stress at work is like putting a band-aid on a leaky pipe. It might hold for a minute, but eventually, it’s going to flood the basement!
Leaders like you need mentally stable and positive people. Not only does their health impact your financials, but it also determines how well your business runs.
In this article, we’ll talk about how to spot and handle trauma at work. Knowing how to manage it is important for creating a supportive workplace. This guide will give you practical advice, facts, and tips to help you in tough situations. Whether you’re dealing with trauma yourself or helping your team, this guide will give you what you need.
People often take a long time to recognize trauma because its effects can be subtle and develop slowly. They might not connect their feelings and behaviors to a past traumatic event. They may also be reluctant to admit they are struggling due to stigma or fear of being judged.
What is Workplace Trauma?
Before we dive into how trauma shows up at work, let’s first define trauma and why people don’t easily recognize it.
What is Trauma?
Trauma is a very upsetting experience that deeply affects a person’s mind and body. It can happen because of events like accidents, natural disasters, personal losses, or violent incidents. Trauma can have lasting effects on mental and physical health, causing headaches, insomnia, anxiety, nightmares, and depression, anger issues – just to name a few nasty side effects.
Most people think that trauma only happens outside the office. They believe that when the workday ends, you can leave work problems behind.
Not so.
Eight-plus hours of dealing with demands, lies, instability, and constant pressure can put immense stress on the mind and body.
Big and Little Ts in Trauma
Trauma can be categorized into “big T” and “little t” traumas. “Big T” traumas are major events like severe accidents, natural disasters, or assaults. At work, a “big T” could be getting fired or laid off without notice. Maybe a faithful team leader from a different section is laid off or your group or is reassigned with no explanation or notice.
“Little t” traumas are smaller, more common experiences like ongoing stress at work, relationship troubles with coworkers, or minor accidents. Just because they are little doesn’t mean a pile-up of these issues won’t impact one’s mindset. For example, at one job site, certain people were stressed because someone was constantly taking their food from the office refrigerator at night. Who does that? Anyway, both types of trauma can significantly impact a person’s mental health.
Why It Takes Long to Recognize Trauma
People often take a long time to recognize trauma because its effects can be subtle and develop slowly. They might not connect their feelings and behaviors to a past traumatic event. Or maybe the folk in your office may also be reluctant to admit they are struggling due to stigma or fear of being judged.
Next, let’s talk about how trauma impacts work productivity.
How Trauma Affects the Workplace
As I mentioned earlier, stress doesn’t operate in a vacuum. A toxic work environment can lead to employees dealing with anxiety, depression, PTSD (Post-Traumatic Stress Disorder), and other mental health issues. And in the workplace, these issues can result in:
- Lower productivity
- More sick days
- A tense work environment
Employees affected by trauma may have trouble concentrating, show emotional outbursts, or struggle with maintaining professional relationships.
Recognizing Trauma in Employees
As a business owner, it’s important to notice signs of trauma in your employees. These signs can include:
- Changes in Behavior: Sudden changes in personality, mood swings, or unusual behaviors.
- Physical Symptoms: Frequent headaches, tiredness, or other stress-related health issues.
- Emotional Outbursts: Increased irritability, anger, or crying.
- Withdrawal: Becoming socially distant or disengaged from work activities.
- Decline in Performance: A noticeable drop in work quality or productivity.
The Importance of Early Detection
Spotting trauma early can prevent further psychological damage and help create a more supportive work environment. Employees who feel understood and supported are more likely to recover and return to being productive. Early detection and support can make a big difference in their recovery and overall workplace harmony.
I hope this explains the importance of recognizing how trauma can impact you and your team members. Next, let’s discuss some scenarios of how trauma can show up in the workplace.
Nobody can heal until everyone is ready to talk about what is happening inside themself as well as what is happening around them.
How Trauma Shows Up at Work
Example 1: Tech Company
A medium-sized tech company saw productivity drop and sick leave increase. After asking their employees, they found out many were stressed and burnt out. The company decided to train managers, offer flexible work hours, and start wellness programs. Six months later, employee morale and productivity greatly improved.
Example 2: Retail Business
A retail business had high employee turnover and low job satisfaction. They brought in a life coach to run stress management and resilience workshops. The workshops included practical exercises and access to mental health resources. This led to lower turnover rates and higher job satisfaction.
Even if your workplace hasn’t faced these exact issues, it’s important to notice if any team member seems emotionally stressed by tight deadlines and high expectations. Next, we’ll discuss how you, as the business owner, can address unresolved trauma at work.
Dealing with Workplace Trauma
Making a Supportive Place
Nobody can heal until everyone is ready to talk about what is happening inside themself as well as what is happening around them. So to handle trauma well, you need to make sure your workplace is supportive. Here’s how:
- Open Communication: Encourage talking openly about mental health. Make sure everyone feels safe sharing their issues without worrying about being judged. You can do this by having regular talks or setting up ways for people to give feedback without saying who they are.
- Training for Managers: Teach your managers how to spot and handle trauma. Give them the skills to help employees and guide them to the right help. This might mean having workshops or online classes about understanding mental health.
- Access to Resources: Make sure everyone can get help for their mental health, like counseling or Employee Assistance Programs (EAPs). Tell them how to find these services and let them know they’re there.
Taking a Trauma-Sensitive Approach
A trauma-sensitive approach means understanding how trauma affects people and knowing how to help them get better. Here’s how:
- Keeping Everyone Safe: Make sure everyone feels safe both physically and emotionally at work. This could mean not allowing bullying or harassment and making sure the workspace feels welcoming.
- Being Trustworthy: Build trust by always being clear and honest in your communication. Keep people updated on what’s happening in the company and always do what you say you will.
- Supporting Each Other: Encourage team members to help each other out. You could set up groups where people can share their experiences and give each other advice.
- Working Together: Involve everyone in making decisions, especially ones that affect their work and how they feel. Ask for their ideas on new projects or rules to make sure they feel important and listened to.
- Giving Power: Make people feel strong by recognizing what they’re good at and letting them make decisions about their work. Let them take charge and make choices about what they do.
By doing these things, you can make your workplace a better, stronger place where everyone feels important and cared for. Next, I will share some tips to help you support your team members during hard times at work.
Like everything that is worthwhile, dealing with workplace trauma takes intention. Choosing to invest in your employees mental health not helps their mindset but improves your bottom line.
8 Ways to Help Your Team Deal with Tough Times at Work
Like anything that truly matters, addressing workplace trauma takes effort and intention. Investing in your employees’ mental well-being doesn’t just help them—it also improves your bottom line. When people feel safe, supported, and valued, they do better work. If you’re serious about creating a healthy workplace, here’s where to start:
Step 1: Learn About Trauma
You can’t fix what you don’t understand. Take the time to learn about trauma—what it is, how it affects people, and why it matters in the workplace. Read books, attend workshops, and share what you learn with your team. The more everyone understands, the better they’ll be at supporting each other. I’ve written extensively about this on my blog—check it out for more insights.
Step 2: Talk Openly
Make honest conversations a norm, not an exception. Regularly check in with your team and let them know their mental health matters. But be prepared—some people will resist these conversations. Not everyone is comfortable with honesty, and some may even push back. That’s okay. The goal isn’t to force people to open up—it’s to create a space where they can if they choose. I’ve shared more thoughts on this on social media—click the link below to join the conversation.
You were right when you felt something was off.
— Denise G. Lee (@DeniseGLee) February 26, 2025
Here’s the truth: even when you’re courageous enough to trust your instincts and speak your truth, not everyone will welcome it. Some may deflect, assign blame, or even try to shift responsibility. Remember, you aren’t obligated to…
Step 3: Be Flexible
Tough times don’t stick to a schedule. When employees are struggling, offering flexible hours or remote work can help them manage stress. Small adjustments can make a big difference in helping someone get through a rough patch without burning out.
Step 4: Get Help From the Pros
You don’t have to do this alone. Make sure your team knows where to find professional help if they need it. Whether it’s counseling services, Employee Assistance Programs (EAPs), or other mental health resources, having access to support can be life-changing.
Step 5: Build a Culture of Care
Your team takes cues from you. If you lead with empathy, kindness, and understanding, others will follow. Encourage a culture where people genuinely support one another. Team-building activities and shared experiences can strengthen these bonds and remind everyone they’re not alone.
Step 6: Prioritize Wellness
Mental health isn’t just about avoiding burnout—it’s about thriving. Consider offering wellness programs like yoga, meditation, or stress management workshops. When people feel good, they work better. It’s that simple.
Step 7: Encourage Breaks
Rest isn’t a luxury—it’s a necessity. Make it clear that taking time off is not only okay but expected when needed. Whether it’s a short breather during the day or extended leave for deeper healing, allowing people to step away when necessary keeps them engaged and productive in the long run.
Step 8: Monitor and Adapt
Pay attention. Is your team struggling? Are certain policies causing unnecessary stress? Regularly ask for feedback and be willing to adjust when needed. A workplace that supports mental health isn’t built overnight—it evolves as you listen and learn.
Final Thoughts
Don’t let emotional problems with team members blow up into something nasty. For both your business to do well and for your team members to stay healthy, it’s really important to notice, handle, and help with trauma at work. By making a place where everyone feels supported, giving practical help, and using professional help, you can help your team deal with tough times.
How do you plan to create a healthier emotional environment in your organization? What strategies have worked for you? I’d love to hear your insights! Click this link to share your experience—it might inspire and help others too.
If you found this guide helpful and want more support with dealing with trauma and other work problems, I’m here to help. As a coach for entrepreneurs, I offer personalized coaching to help you and your team do better.
Also, check out this episode from my entrepreneur podcast where I talk about how to deal with emotionally charged people. Together, we can make your workplace healthier and more productive.
