The higher education sector is experiencing rapid and substantial changes driven by digital transformation, technological advancements, and evolving workplace expectations. Faculty members face increasing pressure to modify their teaching practices, adopt emerging instructional technologies, and respond to expanding responsibilities within academic workplaces. Under these conditions, fostering an organizational environment characterized by trust, openness, and constructive communication becomes essential, enabling employees to express opinions, raise concerns, ask questions, and learn from mistakes without fear of negative interpersonal consequences. This supportive organizational condition is commonly described as psychological safety. This conceptual paper examines the potential contribution of psychological safety to workforce readiness among faculty members in higher education institutions (HEIs). Workforce readiness is conceptualized as an individual’s capacity to acquire relevant knowledge and skills, adapt to changing professional demands, and anticipate emerging workplace requirements. The paper proposes that psychological safety may contribute directly to workforce readiness and may also have an indirect relationship with readiness through work engagement. A psychologically safe environment can encourage constructive attitudes and behaviors among faculty members, potentially strengthening their vigor, dedication, absorption, and willingness to prepare for future challenges and opportunities. Drawing on existing scholarship in organizational behavior and higher education management, the study develops a conceptual framework linking psychological safety, work engagement, and workforce readiness. Its contribution lies in extending theoretical discussion of psychological safety to future workforce capabilities and proposing work engagement as a possible mediating mechanism between psychological safety and workforce readiness. The paper offers a higher education perspective on developing future-ready academic institutions in an increasingly complex and technologically evolving environment. The proposed framework may assist university administrators, institutional leaders, and policymakers in considering organizational practices that support employee engagement, adaptability, lifelong learning, and readiness for changing educational workplaces. As a conceptual rather than empirical investigation, it identifies propositions requiring subsequent testing rather than reporting confirmed causal effects.