Psychological Safety in the Workplace: Why It Matters and How to Build It

A good work environment goes far beyond a convenient location and ergonomic desks. As hybrid models become more popular and global collaboration is now expected, the psychological aspect of workplaces has gained importance.

According to a recent survey by the American Psychological Association, 62% of workers who reported experiencing higher psychological safety at work rated their productivity as outstanding. When psychological safety isn’t present, that number plummets to 38%.

Psychological safety isn’t just about mental health—it can directly impact business. Employees who feel they can speak their minds without repercussions will be more invested and connected to their jobs. 

This article will explain psychological safety, why it matters, and how leaders can foster it to create thriving workplaces.

What is Psychological Safety?

Psychological safety refers to work environments where employees can speak up, make mistakes, and take interpersonal risks without fear of humiliation, punishment, or retaliation. This concept is essential for teams looking to increase performance. 

Emotional safety is a corollary to psychological safety. It relates to employees’ capacity to express their feelings and vulnerabilities without fear of judgment. This concept is often seen as a precursor to psychological safety, and both are crucial for a harmonious and productive workplace.

These notions can be slightly abstract, but when put into practice, they naturally create optimal workplace situations like:

• An employee admits a mistake, and their manager offers a path to correct it.
• A junior employee who challenges a decision is acknowledged by the executive who made it and asks for further insights.
• A team member provides critical feedback to their manager, who listens carefully and thanks the staff member for their honesty.

These scenarios are universally seen as the pinnacle of an efficient, supportive workplace, but they can only happen with psychological safety in place. When employees feel safe to express their thoughts and concerns, innovation and collaboration flourish.

Why is Psychological Safety Important in the Workplace?

Psychologically safe workplaces allow for open dialogue and summon new ideas that are otherwise suppressed by employees who feel unsafe sharing them. This type of environment is crucial for efficient collaboration and innovation. 

The benefits of psychological safety don’t stop there. Employees who feel safe tend to stay longer at their jobs and have better relationships with their managers. Maintaining this kind of workplace is also a great way to build your employer’s brand and attract better employees. 

In a detailed study of team effectiveness by Google, psychological safety was identified as the #1 factor. In this environment, employees’ ability to take risks and be vulnerable allows them to ultimately depend on each other and identify clear roles, plans, and goals.

How to Build and Improve Psychological Safety at Work

The importance of workplace psychological safety cannot be overstated—it’s a pillar of innovation, collaboration, and employee satisfaction. Attaining that goal and maintaining this environment requires intentional effort, especially from leaders.

Leadership behaviors that promote emotional safety

Most behaviors that show psychological safety can be scary for an employee to display at first. Leadership should model dispositions like vulnerability, empathy, and respect. These actions will encourage employees to do the same and create a better workplace overall. 

For example, managers should admit their mistakes publicly, such as in a team meeting, and offer a solution to the problem. This will demonstrate that employees can also make mistakes if they learn from them and take responsibility for finding solutions.

How to create psychological safety through open communication

Transparent communication is an essential element of psychological safety. Without a means for employees to express their thoughts, they won’t feel supported at work and build trust. Creating opportunities for open dialogue promotes a culture where individuals feel valued.

Holding regular team meetings and inviting everyone to share their concerns about ongoing projects or the workplace is a good way to initiate communication. Make sure to have a thorough agenda to fuel the discussion and provide all employees with a structured feedback process. 

Encouraging risk-taking without fear of judgment

Innovation is almost always born from risks. However, the fear of failure and potential reprimand can stifle creativity. Mistakes should be reframed as learning opportunities in order to encourage experimentation within your organization. 

A good opportunity to formalize such a process would be to hold a recurring meeting to celebrate and discuss the team’s recent failures or mistakes. Peers can then share their solutions and advice for the future in a safe way while building internal trust.

How to Overcome Barriers to Psychological Safety at Work

Achieving an environment where employees feel ready to take risks and show their creativity doesn’t happen overnight. Several barriers can prevent this type of culture from taking root. Here are the most common obstacles and their solutions.

Lack of leadership buy-in

Psychological safety must come from the top. The behaviors required to achieve it are scary: leadership and vulnerability. When leaders model such openness, they create a culture that embraces risk-taking, innovation, and collaboration.

Solution:

Educate leaders on the tangible benefits of psychological safety, such as higher productivity and employee retention. Additionally, leadership training that emphasizes vulnerability, empathy, and open communication should be provided to help them model these behaviors.

Opaque communication

When communication channels are inconsistent or overly rigid, employees may feel excluded or reluctant to share ideas. Organizations should promote open dialogue and flexible communication practices to maintain an inclusive environment.

Solution:

Develop structured communication processes like regular all-hands meetings, open forums, or anonymous feedback systems. Ensure leaders and managers regularly communicate expectations, updates, and decisions transparently. 

Fear-based work culture

In organizations that punish mistakes and discourage opposing ideas, employees are unlikely to take the interpersonal risks necessary for psychological safety. This environment stifles innovation and can lead to higher turnover rates as employees seek more supportive workplaces.

Solution:
Shift the focus from blame to learning. Create policies that encourage reflection and growth after mistakes. Reward teams for experimentation and highlight the positive outcomes of taking risks, even if they don’t work out perfectly.

Fostering Psychological Safety: The Key to Thriving Workplaces

Psychological safety isn’t just a business strategy—it’s about creating a workplace where people feel respected, valued, and empowered to bring their whole selves to work. This concept isn’t an abstract nice-to-have but a core innovation and team performance metric.

Leaders who display vulnerability and empathy set the tone for a supportive environment. At the same time, open communication and a focus on learning from failures allow innovation and collaboration to flourish.

Dealing with hurdlessuch as leadership resistance, unclear communication, and fear-based cultures requires intentional effort and a commitment to change. Organizations that invest in psychological safety build stronger, more connected teams that trust each other. 

Discover how MLY can transform your feedback strategy and elevate your organization by uncovering the issues that might prevent you from achieving psychological safety. 

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