Exploring psychological safety experiences of investment banking employees in hybrid work environments

Abstract

Orientation: Hybrid work is common in South African investment banking. While it offers flexibility, it also presents challenges, including reduced team cohesion and complex management dynamics.
Research purpose: This study aimed to identify factors that support or hinder the psychological safety of investment banking employees and to generate insights to inform organisational practices that foster psychologically safe workplaces.
Motivation for the study: Investment banking is high-pressure, fast-paced, and high-stakes, often causing stress. With its reliance on collaboration, cross-functional teamwork, tight deadlines, and rapid decision-making, psychological safety is critical for effective risk management, innovation, and sustained organisational success.
Research approach/design and method: A descriptive qualitative design within an interpretive social constructionist paradigm was used. Convenience and purposive sampling produced 11 participants. Semi-structured interviews were recorded, transcribed verbatim, and thematically analysed.
Main findings: Four themes emerged. The flexibility–trust dynamic showed how autonomy and work–life balance enhance psychological safety, while a lack of trust weakens it. Leadership approaches highlighted the impact of management behaviour. Relationships and team culture emphasised interpersonal connections, mentorship, and collaboration, while reduced bonding was a barrier. Organisational and environmental factors reflected social, generational, and gender dynamics.
Practical/managerial implications: Findings guide leaders and human resources practitioners to foster psychological safety through flexibility, autonomy, trust, and interpersonal relationships. Purposeful hybrid team design and in-person interactions can support inclusion, collaboration, knowledge sharing, and growth.
Contribution/value-add: This study extends the literature on psychological safety and hybrid work by identifying factors that enable and constrain psychological safety, offering insights for organisations and individuals in hybrid contexts. Investment banking institutions can utilise the study to improve employees’ psychological safety in hybrid environments.