moving past corporate trauma

We define Corporate PTSD as the long term psychological damage and/or long lasting after-effects of a traumatic workplace experience, (or a series of adverse events in the workplace) that impact the way we show up at work. PTSD in the workplace is most commonly associated with emergency services, first responders and military, but we are here to raise the flag and alarm that bullying, harassment, sexism, poor work/life boundaries, threatening behaviour and job insecurity, all of which are normalized and sometimes accepted have the potential to cause trauma for workers across the spectrum.

While we are hesitant to associate these forms of workplace-induced trauma with the clinical definition of PTSD, the damage done to people, families, and society as a result is real. The intention with this potentially inflammatory title is that we want to bring awareness to the fact that behaviour which often gets excused under the guise of “Corporate Culture” often runs the risk of being traumatic for individuals, can compound on existing traumatic or adverse experiences, and can lead to developing PTSD, or other anxiety or depression disorders.

For the purpose of this initiative however, we will use the term corporate PTSD to encompass true clinical PTSD and anxiety and depressive disorders that are the result of toxic workplaces. 

Unaddressed trauma can lead to Post Traumatic Stress Disorder (PTSD). Corporate trauma (also referred to as workplace trauma) can stem from a single event or from prolonged exposure (Schwartz, 2016; van der Kolk, 2014). 

Corporate trauma can exist across all roles and industries, and can stem from among other things:

• Workplace Violence and Harassment: Incidents of violence, sexual harassment, racism, and discrimination contribute significantly to employee trauma. Such experiences can lead to long-term psychological effects and hinder professional growth.  One Mind

• Toxic Workplace Culture: Environments characterized by high stress, unrealistic expectations, censorship and lack of support can be traumatic. Employees in such settings may experience burnout, anxiety, and depression.  American Psychological Association Toxic work environments can lead to demoralization, fear, and trauma among employees. 

• Betrayal Trauma: This occurs when trusted individuals or systems within the workplace cause harm, leading to feelings of betrayal and mistrust. Such experiences can severely impact employee well-being and productivity.  The PBT Institute

Research indicates that prolonged exposure to workplace stressors can lead to both physical and psychological health consequences (American Psychological Association [APA], 2023).

Corporate trauma can have both physical, as well as mental and emotional consequences.

• Sleep disturbances, including insomnia or chronic fatigue (Litwiller et al., 2017).
• Exhaustion and burnout, leading to reduced immune function and increased illness susceptibility (Maslach & Leiter, 2016).
• Stress-related pain, such as headaches, back pain, and gastrointestinal issues (APA, 2023).

The psychological toll of corporate trauma can be profound, affecting emotional regulation and overall mental well-being (Hobfoll et al., 2018). 

Common symptoms include:

• Heightened emotional sensitivity, such as frequent crying or increased irritability.
• Anxiety and panic attacks, often triggered by workplace-related stressors.
• Depression and detachment, leading to disengagement from work and personal life.
• Flashbacks or intrusive thoughts, particularly in cases of workplace harassment or severe stress (Yehuda et al., 2015).

Without intervention, the long-term consequences of workplace trauma can be severe, potentially leading to post-traumatic stress disorder (PTSD), chronic health conditions, and decreased job performance. (Bonde et al., 2016).

When workplace trauma goes unaddressed, it can lead to both short and long term consequences that can impact productivity, employee well-being, and overall business success.

Short term consequences may include:

• Decreased Employee Engagement & Productivity
  • Employees experiencing workplace trauma may struggle with concentration, motivation, and job performance (Maslach & Leiter, 2016).
  • Stress-related cognitive overload can reduce decision-making effectiveness (American Psychological Association [APA], 2023).

• Increased Absenteeism & Presenteeism
  • Employees may take more sick leave due to stress-related illnesses (Bonde et al., 2016).
  • Others may be physically present but mentally disengaged, leading to presenteeism and lower efficiency (Goetzel et al., 2019).

• Higher Workplace Conflict & Team Dysfunction
  • Unresolved trauma can lead to emotional volatility, reduced trust, and strained relationships among colleagues (Hobfoll et al., 2018).
  • This can create toxic work environments that increase interpersonal conflicts and reduce team cohesion.

• Increased Turnover & Talent Drain
  • Employees may leave organizations with toxic or high-stress environments, increasing recruitment and training costs (Sutton, 2007).
  • High turnover disrupts team stability and innovation (Klotz & Bolino, 2022).

Long term consequences of workplace trauma include:

• Chronic Burnout & Declining Employee Well-being
  • If left unaddressed, workplace trauma contributes to chronic burnout, leading to long-term health issues such as cardiovascular disease and mental disorders (Maslach & Leiter, 2016).
  • A burned-out workforce has lower creativity, problem-solving capacity, and resilience (Schaufeli et al., 2009).

• Erosion of Organizational Culture & Reputation
  • Toxic workplaces develop reputations for poor leadership, unethical practices, or employee mistreatment, making them less attractive to top talent (Edmondson, 2019).
  • Negative employer branding on platforms like Glassdoor can harm recruitment efforts and consumer perception (Browning, 2018).

• Financial Losses & Decreased Business Performance
  • Companies with high stress-related turnover and absenteeism experience higher operational costs and lower revenue (Goetzel et al., 2019).
  • Poor mental health costs businesses an estimated $1 trillion annually in lost productivity (World Health Organization [WHO], 2022).

• Legal & Compliance Risks
  • Organizations ignoring workplace trauma may face increased lawsuits related to harassment, discrimination, and unsafe working conditions (Hirsch, 2021).
  • Regulatory scrutiny and fines for failing to address workplace mental health concerns can further damage financial standing.

Through our work as change consultants we have seen a lot. We have worked with some workplaces where they described the tenure of a certain leader as "reign of terror", and others where individuals in leadership roles had been arrested as a result of their actions towards others in the workplace.

Not all of the workplaces we have experience have had this level of trauma, but we have also seen and lived in corporate toxicity ourselves to know that it doesn't need to get that bad to have long lasting effects that continue to surface long after we have left the workplaces. We have also seen and heard enough from others where everyone knows things are bad, but they are too scared to do anything about it. 

This is why we are undertaking this work. We want to raise awareness, and on the individual level give people voices if they have felt silenced. On the organizational level, we hope to be able to create enough visibility around the issue that we can one day start to make change to it.