Creating a Culture of Psychological Safety: Building Teams That Thrive

Psychological safety: a buzzword that’s been making the rounds in business circles for a while now. But what is it, and why does it matter so much for teams? First coined by Harvard organisational scientist Amy Edmondson in 1999, psychological safety is about creating a team environment where people feel safe enough to take interpersonal risks. Think of it as being able to share ideas, voice concerns, or ask questions without worrying about looking foolish or facing negative repercussions.

Google famously summed it up in a way we can all relate to: “there’s no team without trust.” And they didn’t just pull that out of thin air - their own research showed that psychological safety was the defining factor in high-performing teams.

Psychological safety is essential for team success because:

• It improves performance and productivity - Google’s Project Aristotle study found that psychological safety was the top factor contributing to team effectiveness

• It reduces turnover - When employees feel respected, heard, and valued, they’re less likely to leave for another job. Simply, employees want and value psychological safety at work.

• It boosts creativity and innovation - Psychological safety encourages employees to share new ideas and perspectives, leading to more creative problem-solving. The safer the environment, the more willing people are to think outside the box.

• It enhances learning and development - When employees aren’t afraid of judgment, they can acknowledge mistakes openly, enabling them and the team to learn and improve processes together.

• It promotes mental health and wellbeing – by reducing stress and anxiety.

• It supports diversity and inclusion - When employees from diverse backgrounds feel safe, they’re more likely to share their unique perspectives, which contributes to a more inclusive and collaborative culture.

But despite the evidence, it’s still common for people to feel reluctant or hesitant to speak up at work, fearing that they might be judged, misunderstood, or worse still, mocked. Sound familiar? You’ve probably had a great idea cross your mind but held back, worried that people will think your idea is silly. Or you have that “What if I’m missing something obvious?” voice of self-doubt in your head.

But, as stated above, when people hold back, it limits creativity and innovation. So, how can leaders create an environment where ideas flow freely, and people feel safe sharing what’s on their minds?

1. Leadership sets the tone

It all starts at the top. Leaders set the tone for psychological safety by modelling openness, empathy, and humility. A good leader doesn’t have to be perfect. Actually, sharing mistakes and learning from them can be incredibly powerful. Leaders being transparent and genuine shows team members that it’s okay to be human, to experiment, and sometimes, to fail.

When leaders show vulnerability, they create a safe space for others to do the same. And that’s what builds trust - the foundation of psychological safety.

2. Communication is key

Psychological safety thrives when there’s clear, consistent, and two-way communication. Teams need to feel not only informed but also valued and heard. Whether it's company-wide announcements or day-to-day feedback, communication should be transparent and respectful. Leaders should invite feedback and be willing to act on it, which shows that they genuinely value their team's insights.

If ideas and feedback aren’t encouraged and acknowledged, they’ll stop coming altogether, and with them goes the chance for growth and improvement.

A psychologically safe environment requires a foundation of clear expectations and well-defined roles. When people know what’s expected of them, they feel more confident in their roles and are better able to take risks without fearing unintended consequences.

3. Encourage constructive feedback, not perfection

One common blocker of psychological safety is the fear of mistakes. We can’t expect teams to share ideas or take risks if they feel like a single misstep will have consequences. Instead, let’s normalise making mistakes as part of the journey. Learning from our stumbles is crucial to innovation, and a little empathy from leadership can make all the difference.

Encouraging people to think of mistakes as learning experiences can inspire a more creative, resilient approach to problem-solving. And if leaders are open about their own mistakes? That’s even better.

4. Provide multiple avenues for idea sharing

Psychological safety isn’t a one-size-fits-all model, and neither is communication. Having different ways for employees to share ideas, whether that’s through regular meetings, anonymous surveys, online platforms, or informal brainstorming sessions, allows everyone to engage in the way that feels right for them. Platforms like Slack, MS Teams, and Workplace make it easy for team members to contribute thoughts at their own pace, especially valuable for those who prefer time to reflect.

5. Embrace the newer generations' comfort with failure

While embracing failure might feel uncomfortable for some of us, younger workers see it as part of growth. They understand that experimenting, failing, and trying again is key to innovation. If we want to foster a psychologically safe environment, we need to embrace this mindset and actively show that it’s okay to take risks and learn along the way.

6. Measure and act on psychological safety

Finally, if you’re wondering where your team stands with psychological safety, just ask them! Use employee surveys to gauge whether team members feel safe to voice their thoughts without fear of criticism. A quick pulse survey can reveal valuable insights and help you spot areas for improvement. And if the results aren’t as positive as you’d hoped, it’s a chance to take action and strengthen that culture of trust.

The Takeaway: Nurture your team, and they’ll nurture your business

By embedding psychological safety into your team’s culture, you’re creating a space for innovation, learning, and loyalty. The benefits? Increased motivation, collaboration, and a stronger commitment to the team's success.

If you're not sure that your internal comms strategy is doing all it can to nurture a culture of psychological safety, then why not give us a call or drop us a line so we can see how we can help.