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Understanding Psychological Safety: How Leaders Can Build Safe Workplaces

Imagine a workplace where everyone feels comfortable speaking up, sharing ideas, and taking risks without the fear of being ridiculed. This isn’t just a fantasy—it’s the power of psychological safety, and in modern life, it’s more important than ever.

Leaders have an incredible opportunity to shape the culture of their organisations, transforming teams from merely functional to truly exceptional. Let’s dive into what psychological safety is, why it matters, and how leaders can nurture this invaluable asset in their workplaces.

What is Psychological Safety?

Fatigue is feeling tired, weary, or lethargic due to mental or physical exertion, lack of sleep, or prolonged stress. Fatigue can be acute or chronic, depending on the duration and severity of the factors that contribute to it.

Key Components of Psychological Safety:

Team members believe their contributions will be valued and respected. 

Employees feel respected by their peers and leaders, promoting collaboration. 

Diverse perspectives are welcomed and considered. 

Support is provided when team members take risks or face challenges. 

Mistakes are viewed as learning opportunities rather than failures.

Real-Life Examples

Consider Stacey, a project manager who recently miscalculated her project’s budget. Instead of facing reprimand, her supervisor praised her honesty and encouraged the team to discuss what went wrong. This approach turned Sarah’s mistake into a valuable learning experience for everyone involved.

In another instance, during a weekly check-in, Tim, a department head, sensed his team was unusually quiet. To break the ice, he shared his own recent challenges with a project. This vulnerability prompted team members to open up about their concerns, leading to a candid discussion that resolved lingering issues. 

Why Psychological Safety Matters

The benefits of psychological safety in the workplace are profound. Here’s how it can transform your organisation:

  1. Improved Employee Engagement 
    When people feel safe expressing their ideas without fear of negative consequences, they become more invested in their work. Engaged employees produce higher-quality results and are less likely to leave the organisation, which reduces turnover. 
  2. Boosted Innovation 
    A secure environment encourages creativity. Employees who feel psychologically safe are more likely to propose exciting new ideas and take calculated risks without fearing punishment for failure. 
  3. Enhanced Workplace Wellbeing 
    Reducing fear leads to lower stress levels among employees, contributing to better mental health and work-life balance. 
  4. Better Teamwork and Communication 
    Teams that operate in a psychologically safe space communicate more effectively and collaborate better, leading to improved decision-making. 

The Impact of Psychological Safety

Research published in the Harvard Business Review highlights the tangible benefits of high psychological safety in the workplace:

27% reduction in turnover

76% higher engagement

50% increase in productivity

74% reduction in stress

29% increase in life satisfaction

These statistics illustrate why leaders should prioritise psychological safety within their teams. 

6 Signs of Psychological Unsafety

If there’s a lack of psychological safety in your workplace, it needs to be identified and rectified as soon as possible to maintain a healthy and productive environment. Here are some signs that your workplace may be psychologically unsafe:

  1. High Turnover Rates
    Frequent staff departures signal underlying issues related to psychological safety. When employees don’t feel secure or valued, they’re more likely to seek opportunities elsewhere. A high turnover not only disrupts workflow but also increases recruitment and training costs, negatively impacting the organisation’s stability and growth. 
  2. Lack of Employee Engagement
    A disengaged workforce often indicates low psychological safety. Employees who don’t feel safe are less likely to invest their energy into their work. This lack of engagement can lead to decreased productivity, lower morale, and ultimately, a decline in overall workplace wellbeing. 
  3. Frequent Conflicts
    Regular conflicts among employees can be a sign of a psychologically unsafe workplace. When team members don’t feel secure, they’re more likely to experience misunderstandings and disagreements. This can create a hostile environment that nobody wants to experience, which further reduces collaboration and trust within the team. 
  4. Fear of Taking Risks or Voicing Opinions  
    If employees hesitate to share ideas or take risks due to fear of criticism or punishment, it stifles innovation and creativity, leading to many missed opportunities for improvement. 
  5. Low Levels of Trust  
    A lack of trust among team members is a clear indicator of psychological insecurity. When trust is missing, collaboration is the first thing to suffer, and employees are far less likely to support each other. This can result in isolated work efforts, reduced efficiency, and a fragmented organisational culture.
  6. High Stress and Burnout Rates  
    High levels of stress and frequent burnout among employees is a pretty good indicator of psychological safety issues. When employees constantly worry about their job security or fear negative repercussions, it takes a toll on their mental health, which unsurprisingly leads to increased absenteeism and decreased overall workplace wellbeing. 

These signs of a psychologically unsafe workplace can severely impact the health of the organisation, by disrupting operations and reducing productivity. It can also severely hinder team performance and innovation. Ultimately, these issues don’t just make for an unpleasant environment; they can damage the organisation’s reputation, making it harder to attract and retain top talent.

Addressing psychological safety concerns is key to creating a positive and productive workplace. For support, consider exploring Altius Group’s counselling and psychological services

Creating Psychological Safety in the Workplace

So how can leaders create an environment where team members feel safe expressing themselves? Here are some actionable steps:

  1. Encourage Open Communication. Regularly invite feedback from employees and actively listen to their ideas.
  2. Show Empathy. Understand emotional needs and create a supportive atmosphere.
  3. Implement Inclusive Policies. Ensure all team members feel valued regardless of their background or role.
  4. Promote Collaboration. Create a culture where teamwork is encouraged.
  5. Provide Training Programs. Focus on building psychological safety and enhancing leadership skills.
  6. Model Vulnerability. Share your own challenges to demonstrate that it’s safe to take risks.
  7. Recognise Contributions. Celebrate employees' successes to reinforce a positive culture.  

For example, during brainstorming sessions at his company, Lisa’s manager encouraged everyone—regardless of seniority—to share ideas openly. This approach led Lisa, a junior designer, to voice her concept for a marketing campaign that sparked an enthusiastic discussion resulting in innovative strategies the team hadn’t considered before. 

Evaluating Psychological Safety and Seeking Support

Assessing psychological safety (or a lack thereof) involves gathering insights from employees through surveys and feedback tools that identify areas needing improvement (such as stress levels or fear of speaking up):

  1. Using Surveys: Collect anonymous input from employees about their experiences and perceptions, highlighting specific issues.
  2. Identifying Areas for Improvement: Analyse results to pinpoint patterns indicating underlying problems, enabling proactive interventions.
  3. Seeking Support: For effective solutions, organisations can seek counselling and psychological services. Altius Group offers various training and development programs to enhance workplace psychological safety and wellbeing. 

Final Thoughts

Psychological safety is vital for creating productive workplaces characterised by higher engagement levels and reduced stress. Leaders must prioritise open communication while valuing employee contributions to build an environment conducive to collaboration and creativity. 


If you’re serious about enhancing workplace wellbeing with expert guidance from Altius Group, reach out at 1800 258 487 or visit our enquiry page for more information on how we can support you in this journey toward creating a safer workplace for all employees. 

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