What: Middle managers experience the lowest psychological safety in organisations, undermining their ability to transmit critical information and support organisational agility.

Why it is important: The issue is significant because it directly impacts innovation, talent retention, and the ability to adapt to market changes, as highlighted in recent industry analyses.

Middle managers, who serve as the vital link between strategy and execution, report the lowest levels of psychological safety within organisations—lower than both their senior leaders and direct reports. This lack of safety stems from fear of failure, insufficient peer support, and a lack of vulnerability modelled by senior leadership. Newly promoted middle managers are particularly vulnerable, facing steep learning curves and heightened scrutiny, which can lead to isolation and risk aversion. The consequences are far-reaching: critical feedback loops break down, innovation slows, and long-term performance suffers as problems go unaddressed and learning is stifled. The article argues that organisations must redesign accountability systems to encourage constructive risk-taking, foster open communication from senior leaders, and create robust peer support networks for middle managers. Without these changes, companies risk undermining their agility and falling behind in a rapidly evolving market. The solutions lie in building cultures that reward learning, normalise fallibility, and provide genuine support for those in the middle.

IADS Notes: Recent findings from January and October 2025 underscore the pivotal role of psychological safety for middle managers in retail, as highlighted in Sifted and The Economist. These sources reveal that middle managers are essential for translating strategy into execution, yet often lack the support and trust needed to transmit critical information upward and downward, especially during periods of organizational change or delayering. Research from BCG in September 2025 and Harvard Business Review in May 2025 further demonstrates that low psychological safety undermines innovation, agility, and long-term performance, with only a minority of retailers successfully fostering employee-driven innovation. The unique challenges faced by newly promoted managers, including high turnover intentions and reluctance among Gen Z to take on these roles, are documented in Sifted and the Financial Times in early 2025, emphasizing the need for structured onboarding and mentorship. Leadership modeling, as discussed by BCG and McKinsey in April and June 2025, is crucial for building a culture of openness and adaptability, while the persistent issue of structural isolation is addressed in Inside Retail and The Economist, highlighting the importance of peer support networks to combat burnout and disengagement. Collectively, these insights confirm that strengthening psychological safety for middle managers is fundamental to organizational resilience and sustained performance in retail.

Middle managers feel the least psychological safety at work