Inclusive leadership in hybrid teams : cultivating psychological safety within the financial sector

Abstract

The COVID-19 epidemic caused a global disruption that created the norm of full-time virtual work. With the ending of the pandemic, organisations have embraced the new hybrid working paradigm, wherein people operate in co-locations. This novel phe-nomenon presents both advantages and challenges. Consequently, leaders retain the responsibility to manage effectively, remain agile and adapt as changes arise. The hybrid working model necessitates relational leaders capable of promoting well-being and inclusion while enhancing performance. Inclusive leadership is presently currently underexplored, and how it cultivates psychological safety in teams in this novel context remains unknown. This study aims to understand how leadership be-haviours have shifted to foster inclusive environments in the current context. Further-more, the role of inclusive leadership in promoting psychological safety within hybrid teams is explored. This study employed a qualitative exploratory research methodology, which pro-duced novel findings into the adaptation of leadership behaviours to foster inclusive hybrid teams. Furthermore, to comprehend the impact of inclusive leadership on psy-chological safety within hybrid teams. Fourteen semi-structured interviews were con-ducted with hybrid working knowledge workers in the financial sector. The findings indicate that leaders who adopt an outcome-oriented strategy create inclusive envi-ronments. Additionally, the findings indicated the crucial role trust and open commu-nication contribute towards fostering inclusive leadership that promotes psychologi-cal safety.