What is psychological safety?

Business owners, leaders and HR execs are continually looking for ways to help employees feel engaged, safe and secure at work. We want employees to bring their best selves to the office — to be creative, to push themselves and solve complicated problems in new and innovative ways. But none of this will happen unless you have psychological safety baked into your company culture.

Psychological safety plays a pivotal role in helping teams innovate, communicate effectively and, ultimately, achieve their goals. But what exactly does psychological safety mean and why is it so important to modern organisations? How can you build psychological safety into your business and what role does leadership play?

Let’s take a long look at this critical concept — how psychologically safe do you feel your employees are at your office? But first, let’s answer the question — what is psychological safety?

Related: How does radical candour support psychological safety?

What is psychological safety?

Psychological safety is the belief and reassurance, that you can express yourself without fear of negative consequences. In a psychologically safe environment, employees feel confident sharing ideas, asking questions, raising concerns and even admitting mistakes without worrying about being judged, ridiculed or penalised.

This concept was made famous by Amy Edmondson, a professor at Harvard Business School, who first defined it in her 1999 paper, Psychological Safety and Learning Behaviour in Work Teams. In her research, Edmondson made the amazing discovery that the most effective teams weren’t necessarily those with the highest skill levels — but rather those where individuals felt comfortable speaking up. She found that when people believed they wouldn’t be punished or humiliated for taking risks, it led to better decision-making, learning and innovation. Clearly, this has massive implications for the workplace, for teamwork and for the way we manage people.

The importance of psychological safety in the workplace

Psychological safety is more than just a word coined nearly thirty years ago. It’s a massive component of a healthy, productive work environment. When employees feel safe, they are more likely to contribute ideas, challenge the status quo and share knowledge, all of which can lead to higher levels of creativity and performance. 

Below are just a few ways in which psychological safety can impact the way we work.

It can boost collaboration and communication

In many workplaces, open communication can be difficult to achieve, especially across teams. Our own benchmark data shows that only 46% of employees feel communication is good between teams. Employees sometimes worry about being criticised or ignored, making them reluctant to speak up. Psychological safety breaks down these barriers by providing an environment where everyone’s voice is heard, valued and respected. This can be especially important in diverse teams, where differences in background, opinion and expertise might make individuals hesitant to share their perspectives.

If we want a case study to illustrate this, we need only look at a Google study known as Project Aristotle. Conducted in 2015, the study examined 180 teams to determine what made the most effective teams. The study found that psychological safety was the single most important factor in team success. Teams that scored high in psychological safety outperformed others, showing better collaboration, increased creativity and higher levels of employee satisfaction.

It can encourage risk-taking and innovation

Ever since we were born, we’ve learned and grown through making mistakes. When we’re told that mistakes are okay, that they happen and that we can learn from them, we encourage healthy risk-taking. This risk-taking can reap great rewards — it can also sometimes result in failure. It’s a matter of taking the good with the bad, and using our experience and knowledge to make calculated risks.

But when we know that failures and mistakes can result in extreme measures, we simply refuse to take the risk in the first place. Innovation can’t thrive in an environment like this. Employees need to know that they have some wiggle room — that they can make mistakes without fear of ridicule, criticism or without losing their jobs. When employees feel that their mistakes will be seen as growth opportunities and not innately negative, they feel more confident in sharing bold, perhaps imperfect, ideas — and one of those innovative ideas could make all the difference to the future of a company.

It supports mental health and wellbeing

In an unsupportive setting, stress, anxiety and burnout are inevitable side-effects. A 2020 report by the Mental Health Foundation found that 74% of adults felt so stressed at work that they were overwhelmed or unable to cope. Our own data shows that 36% of employees are unable to comfortably cope with their workload. While quite a few factors contribute to workplace stress, the absence of psychological safety can make all these issues worse. When employees feel constantly on edge, worried about judgement or reprisal, it takes a toll on their mental health.

By nurturing psychological safety at work, organisations can create a more supportive atmosphere where individuals feel comfortable being themselves, reducing anxiety and helping prevent burnout. When people feel safe, they are more likely to manage stress effectively and maintain a healthier work-life balance.

Related: Signs of stress at work

Building psychological safety in the workplace

Psychological safety doesn’t happen overnight, but it can be developed over time through intentional actions and practices. As long-time employee experience experts, here are some key strategies for creating a psychologically safe work environment.

Clear communication

Transparent communication is the cornerstone of psychological safety. Encourage open dialogue and create channels for employees to voice their opinions and concerns. Regular team meetings, one-on-one check-in and anonymous suggestion boxes are all effective tools for maintaining clear communication.

When employees feel heard and valued, they are more likely to take risks, share innovative ideas and ultimately contribute to the organisation’s success. In a survey by Edelman, 56% of employees stated that open and honest communication from leadership is very important to building trust.

Feedback and recognition

Constructive feedback and recognition are powerful tools for building trust and psychological safety. Acknowledging employees’ contributions and providing specific, actionable feedback reinforces their sense of value within the organisation.

Regular performance evaluations, integrating dedicated recognition platforms like Mo and public praise all contribute to a culture where employees feel seen and appreciated. This, in turn, fosters a positive and psychologically safe work environment.

Empowerment and autonomy

Empowering employees with a sense of autonomy over their work creates a culture of trust. When individuals have control over their tasks and decisions, they are more likely to take ownership and responsibility.

Encourage employees to take initiative, make decisions and share their expertise. When individuals have control over their tasks and decisions, this not only boosts confidence but also leads to a more committed workforce. In fact, data from the People Insight platform illustrates that employees who feel positively about their level of autonomy at work are more likely to be highly engaged. Survey statements like “I have the freedom I need to get on with my job” are frequently cited as key drivers for engagement according to our research.

Lead by example

Leaders play a pivotal role in establishing psychological safety within their teams. By modelling open and transparent communication, admitting their own mistakes and showing vulnerability, leaders can set the tone for the entire team. When employees see that their leaders are willing to admit to not having all the answers or make occasional errors, they are more likely to do the same.

Employees are more likely to feel psychologically safe when they perceive their leaders as supportive and non-judgmental. Leaders who demonstrate empathy, ask for input and treat mistakes as learning opportunities can help create a more trusting and open environment.

Related: 5 Components of emotional intelligence in leadership

Encourage open dialogue

Workplaces thrive when individuals feel comfortable sharing their thoughts and concerns. Encouraging open dialogue, where all voices are welcome, is important for any business hoping to build psychological safety. Leaders and managers can help by actively seeking input from everyone on the team, not just the most vocal members. Regular feedback sessions, team check-ins and anonymous suggestion systems are all effective ways to ensure everyone has a voice.

Embrace diversity and inclusion

Psychological safety is closely linked to diversity and inclusion. In a diverse workforce, team members may bring a wide range of perspectives and experiences, which can be a tremendous asset when managed effectively. However, diversity can only truly benefit an organisation when people feel safe to share their unique viewpoints.

Research from McKinsey & Company shows that organisations with greater diversity in leadership are 36% more likely to outperform less diverse competitors. Yet, this advantage can only be fully realised in a psychologically safe environment where individuals feel confident in expressing different ideas without fear of bias or prejudice.

Promote a learning mindset

Encouraging a culture of continuous learning is another powerful way to build psychological safety. When teams adopt a learning mindset, mistakes are seen as opportunities for growth rather than failures. This shift in attitude reduces the fear of failure, making it easier for employees to experiment, share new ideas and learn from their experiences.

Psychologist Carol Dweck, known for her work on “growth mindset,” has shown that individuals who view challenges as opportunities to learn are more resilient and motivated. In a psychologically safe workplace, this mindset can be reinforced, allowing employees to take risks and grow without fear of judgement.

Measuring and monitoring psychological safety

Evaluating psychological safety within an organisation requires a combination of qualitative and quantitative measures.

Surveys and feedback loops

Regularly conduct employee surveys to gather feedback from employees about their perception of psychological safety and their work experience as a whole. Ask questions about their comfort level in expressing opinions, as well as their confidence in raising concerns.

Anonymous reporting mechanisms

Implement anonymous reporting systems for employees who may not feel comfortable sharing their thoughts openly. This allows for candid feedback without fear of retribution.

Track employee engagement and turnover rates

High levels of employee engagement and low turnover rates are indicators of a psychologically safe work environment. Monitor these metrics to assess the effectiveness of your initiatives.

Today, psychological safety is a fundamental component to a successful and innovative workplace. By providing an environment where individuals feel free to speak up, take risks and make mistakes without fear of retribution, organisations can unlock the full potential of their teams. From enhancing collaboration and creativity to supporting mental health, the benefits of psychological safety are clear — teams with high psychological safety always outperform those without it. So take the time to make this a priority for your business in the coming years.

Wanting to boost levels of psychological safety at your company? It all starts with gauging where you are now, assessing where you can improve and making realistic organisational changes. Give your employees a voice today and make sure they’re heard — get in touch for an employee engagement survey.