It’s very much a buzzword in the world of leadership and coaching, so we thought we’d try to demystify ‘psychological safety’, outline why it’s so essential in the modern workplace and share 10 practical steps on how modern leaders can best adopt it to create happier and more productive businesses.

The term refers to an environment where employees feel confident to express their opinions, ideas, and thoughts without fear of being punished, rejected, or marginalised. It was coined by Harvard Business School professor Amy Edmondson who defines it as “a shared belief that the team is safe for interpersonal risk-taking.”

Edmondson encountered the concept during her time as a doctoral student in the 1990s, studying the impact of teamwork on medical errors. Surveys found a strong correlation between error rates and team effectiveness. Contrary to her prediction, high-performing hospital teams made more mistakes than weaker ones. Research confirmed ‘good’ teams actually reported more errors, because they had a healthier approach to making and talking about mistakes.

Why is it important in the workforce?

Leaders and businesses are working in ways they never have before, looking at new ways of communicating, often problem-solving and engaging teams from afar. As many employees return to the office or commit to working remotely indefinitely, it is imperative that leaders understand psychological safety and how it relates to the workplace.

A psychologically safe workplace can lead to higher job satisfaction and employee engagement, as individuals feel valued and heard. Paired with effective management and clear KPIs, this can empower employee retention and improved overall staff performance.

Conversely, a lack of psychological safety can create a toxic work environment where individuals are reluctant to speak up or contribute, leading to missed opportunities and decreased productivity. It can also lead to high levels of stress and burnout among employees. A 2019 Gallup poll found that just 3 out of 10 employees felt that their ‘opinions count’ at work.

How can business leaders foster psychological safety in the workplace?

Assuming good intent within this dynamic is foundational in successfully fostering this environment. It's key to both personal relationships and a positive work environment, as it enables open communication, encourages innovation, and helps create a positive and inclusive workplace culture where people can speak up and take appropriate risks.

Leaders need to prioritise resilience, self-direction, and adaptability in employees and managers. Similar to business operations over COVID, during a recession, the mindset and wellbeing of employees is crucial, requiring leaders to have strong internal communication skills. For leaders, speaking out is actually less important than how we react and respond to other team members.
Business leaders can foster psychological safety in the workplace by taking the following steps:

1. Make it Explicit:

Talk with your team about the importance of creating psychological safety at work. Connect it to a higher purpose of greater organisational innovation, team engagement, and inclusion.

2. Set an Example:

Show transparency and openness in your behaviour and encourage open communication throughout the team. Ask for help when you need it, and freely give help when asked.

3. Facilitate Conversation:

Be open-minded, curious and compassionate when someone is brave enough to challenge the status quo.

4. Discuss Failure:

Don’t punish experimentation and risk-taking. Embrace that mistakes are an opportunity for growth. Encourage learning from failure and disappointment, and openly share your own learnings from mistakes.

5. Build Trust:

Trust is key to psychological safety. Focus on building trust with employees by keeping commitments and being consistent in your actions and decisions.

6. Embrace Diversity:

Encouraging diversity and inclusiveness in the workplace creates an environment where individuals feel valued and accepted.

7. Handle Mistakes Constructively:

Create a culture where mistakes are viewed as learning opportunities instead of deserving punishment or blame.

8. Provide Resources and Support:

Ensure employees have access to the resources and support they need to succeed and feel comfortable taking risks. This can include line management, peer groups or external coaching.

9. Address Issues:

Regularly evaluate the level of psychological safety in the workplace and take steps to address any issues that arise, such as providing training, coaching or changing company policies and practices.

10. Celebrate Wins:

Acknowledge what’s going well, however small, and appreciate people’s efforts. Encouraging and expressing gratitude reinforces your team members’ sense of self.

How can leadership coaching help with psychological safety?

‘Authenticity’ is a key ingredient for creating workplace cultures that are rooted in psychological safety and belonging. Leaders who are authentic in how they behave are more likely to create safe, trusting, inclusive, and empowered teams where people feel comfortable sharing who they are and how they feel at work. This, in turn, can create a more engaged, productive, and innovative workforce.

Part of the work of a coach is to help organisations to identify the level of psychological safety they have in their team and how best to increase it. This could mean getting to grips with ‘openness’, ‘transparency’ or ‘vulnerability’ which can be transformational in corporate or hierarchical environments.

If this article has sparked your interest about making your leadership approach more inclusive, we’d love to talk about how we can support your goals.