The why and how of psychological safety in the workplace

The last few years has seen an increase in understanding and prioritising wellbeing and mental health in the workplace. This is largely due to the impact of the pandemic as well as changes in legislation – in particular, psychosocial hazard management legislation. Workplaces are starting to truly grasp the importance of this, as well as the dire consequences of ignoring it.  

The area of psychological safety is one that is not as widely understood and certainly not as appreciated or prioritised as it should be. One could go as far to say, that psychological safety is the principle that underpins the success of any business, and the success of any controls put in place through a psychosocial risk assessment.  

Psychological safety can be complex and feel subjective to understand and discuss. A common misconception is that it’s created simply by avoiding conflict or hosting monthly staff drinks. In reality, true psychological safety is built over time through trust, openness, and consistent actions.  

For every leader who believes pulling rank drives harder work and obedience, who punishes mistakes punitively, who avoids conflict to keep the peace, or who doubts the importance of authenticity in the workplace — read on to discover why workplace expectations are evolving in 2025.

So, what is psychological safety?

Psychological safety refers to an individual’s perception of whether they can express themselves, share ideas, and take interpersonal risks without fear of embarrassment, rejection, or retribution. When psychological safety is present:

• Team members feel comfortable speaking up with ideas or concerns.
• Mistakes are treated as opportunities for learning rather than blame.
• Feedback is constructive and supportive.

Fostering psychological safety has become a critical factor for organisational success. It is not a buzzword; it’s a key driver of innovation, collaboration, and employee wellbeing.

The benefits of psychological safety

1. Encourages Innovation

Psychological safety allows team members to voice creative ideas, even if they seem unconventional. When people feel safe to take risks, organisations benefit from increased innovation and problem-solving.

2. Enhances Team Performance

Teams with high psychological safety communicate openly and collaborate effectively. This leads to better decision-making, fewer errors, and stronger performance.

3. Improves Employee Wellbeing

A psychologically safe environment reduces stress and anxiety, leading to increased job satisfaction and lower turnover rates.  

The Indicators of a Thriving Workplace (ITW) Survey 2024, Safety Domain* results is a good representation of the extent to which a work environment is psychologically safe. Contrasting workers who score in the top (over 85) and bottom (<60) 25% of scores for this Domain provides some interesting statistics:

• • Agree that workplace is mentally healthy: 85% on average for highest Safety Domain scoring workers, 22% for lowest
  • Intend to stay next 12 months: 88% on average for highest Safety Domain scoring workers, 44% for lowest
  • Feel comfortable talking about your mental health:  74% on average for highest Safety Domain scoring workers, 24% for lowest
  • Psychological distress in mod-severe range - 40.5% on average for highest Safety Domain scoring workers, 73% for lowest
  • Total no. of days in the past 4 weeks that day-to-day activities were impacted by psychological distress – 6.32 days on average for highest Safety Domain scoring workers, 7.9 days for lowest.

*Safety: the processes put in action to protect personal safety so that workplaces are free from harassment, bullying, discrimination and violence. These processes provide proactive support and promote positive social interactions, Indicators of a Thriving Workplace.

How to Create Psychological Safety - 7 tips

Consider the following when creating psychological safety along with intentional leadership and consistent effort.

1. Model Inclusive Leadership

• Actively listening to team members without interrupting or dismissing their ideas.
• Valuing diverse perspectives and encouraging contributions from everyone.
• Acknowledging and addressing unconscious biases.

2. Encourage Open Communication

• Holding regular one-on-one check-ins where employees can share feedback or concerns.
• Encouraging questions and clarifying that no question is “silly.”
• Creating anonymous feedback mechanisms for employees who may hesitate to speak up.

3. Respond Constructively to Mistakes

• Treat mistakes as learning opportunities rather than assigning blame.
• Celebrate lessons learned from failures.
• Share examples of your own missteps to normalize vulnerability.

4. Recognise and Reward Contributions

• Share innovative ideas.
• Support colleagues through challenges.
• Exhibit behaviours that promote inclusivity and collaboration.

5. Address Toxic Behaviours Promptly

• Establishing clear policies against harassment and discrimination.
• Providing training on respectful workplace behaviour.
• Taking immediate, fair action when issues arise.

6. Invest in Training and Development

• Develop emotional intelligence.
• Improve conflict resolution skills.
• Build stronger interpersonal relationships.

7. Measure and Monitor Progress

• Employee surveys and focus groups.
• Feedback during performance reviews.
• Observing team dynamics in meetings and projects.

Building psychological safety is not a one-time initiative but a cultural shift that requires ongoing commitment from leadership. Leaders must embody the principles of psychological safety and prioritize it as a core organizational value.

For more strategies to foster psychological safety at work watch our recent webinar featuring Dr. Natalie Flatt and Prof. Brock Bastian.

To understand where your workplace sits in terms of psychological safety, running a workplace wide diagnostic tool, like the Thriving Workplace Index can be a great place to start.