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Why is Psychological Safety Important in Teams?

Why is Psychological Safety Important in Teams? Developing…

Why is Psychological Safety Important in Teams?

Why is Psychological Safety Important in Teams?

Developing high performing teams is no small feat. Organisations invest in training, technology, and strategy to drive performance, yet often overlook one critical factor—psychological safety. Creating an environment where individuals feel safe to express ideas and take risks without fear of criticism or negative consequences can transform team dynamics and improve overall performance. 

We explore why psychological safety matters, how it links to high performing teams, and provides actionable steps to cultivate this vital workplace trait.

What is Psychological Safety?

Introduced by Harvard professor Amy Edmondson, psychological safety refers to the shared belief that a team environment is safe for interpersonal risk-taking. It is not about avoiding conflict or criticising less; rather, it’s about fostering trust and openness where challenges are addressed respectfully and constructively. 

When individuals feel not only safe, but also willing to contribute their observations and ideas, organisations will often see an uplift in culture, performance and employee retention.

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Why does this matter for organisations? The standout findings in Google’s “Project Aristotle” revealed that psychological safety is a top determinant of team success. Furthermore, Boston Consulting Group research underscores that psychological safety enhances inclusivity, resulting in employees who are 2.1 times more motivated, 2.7 times happier, and 3.3 times more enabled to reach their full potential at work.

How Psychological Safety Correlates with High Performing Teams

Teams that operate under psychologically safe conditions unlock a competitive advantage through innovation, engagement, and collaboration. Employees feel secure exploring unorthodox solutions and testing the status quo. Even failure is reframed—not as a personal flaw but as an opportunity to learn and refine processes. 

According to the Boston Consulting Group (BCG), empathetic leadership drives psychological safety, which results in higher retention rates and improved morale. For example:

  • Reduced Attrition: Employees in psychologically safe environments were four to six times less likely to leave than their counterparts in unsafe team dynamics. 
  • Heightened Innovation: Teams perform optimally when they feel heard and valued. This culture fosters open discussions, enabling organisations to adapt more quickly to challenges. 

Take the example of companies like Google and Pixar, whose success stories often attribute their groundbreaking work to cultures that encourage open collaboration and trust.

Steps to Build Psychological Safety in Teams

Creating a psychologically safe work environment requires deliberate actions by leaders. Here’s how to develop greater levels of trust, collaboration, and performance when it comes to leading teams. 

1. Lead with Empathy 

Empathetic leaders play a pivotal role in building trust. When leaders actively listen, acknowledge challenges, and respond with understanding, employees feel more secure addressing complex issues. 

Here are some tips to lead empathetically:

  • Regularly check in with team members, not just on work progress but on how they’re coping personally. Don’t try to tick a box, connect with the individual who is working with you.
  • Share your own challenges and experiences as a leader—it sets the tone for honest discussions within the team. Sharing your own imperfections, mistakes and how you navigate them encourages your team to safely do the same.

2. Encourage Open Communication 

An open-door policy sounds great in theory, but it takes conscious effort to cultivate. Proactively invite team members to share their thoughts during meetings and praise constructive criticism publicly for a positive ripple effect. 

3. Address Conflict Respectfully 

Psychologically safe environments don’t eliminate conflict—they encourage open disagreements handled with mutual respect. Criticism should centre on ideas and work rather than individuals.

4. Equip Teams with High Performing Team Training 

Structured workshops and training programs can help teams understand the fundamentals of trust, empathy, and effective communication. This creates understanding and alignment.  Alignment does not mean there are no disagreements, in fact, it encourages and creates space and safety for robust discussions that help to achieve the overarching outcomes. High performing team training often integrates role-play scenarios, feedback exercises, and hands-on sessions to embed these skills. 

5. Reward Learning and Risk-Taking 

Reframe mistakes and risks as learning opportunities. Recognise both success and effort, making employees feel valued for their contributions.

Navigating Common Challenges in Cultivating Psychological Safety

Building psychological safety is no quick fix and comes with its challenges. Leaders might face resistance, misunderstandings, or simply fail to maintain the momentum of initial efforts. 

Overcoming Resistance 

Some employees may be reluctant to participate initially, particularly those used to hierarchical, risk-averse workplaces. Leaders must spend time demonstrating small wins and modelling the behaviours they wish to see in their teams. 

Avoiding Misinterpretations of Psychological Safety 

Psychological safety is often mistaken for leniency. Remember, it is about creating a supportive environment—not relaxing performance standards. Provide regular, constructive feedback, so employees learn for the future without feeling reprimanded for failure. 

Embedding Safety into Processes 

It’s easy to make a workplace “feel” safe briefly, but embedding psychological safety into the culture is vital for long-term success. Doing so takes time, energy, and consistent focus. Regular reflections, empathetic leadership, and training should become an integral part of your workflow and processes.

A Final Word for Leaders 

Psychological safety is the foundation upon which high performing teams are built. By fostering a safe, open environment, organisations can unlock their team’s collective potential, spur innovation, and retain diverse talent.

For leaders looking to take their teams to the next level, psychological safety should be a strategic priority. Investing in high performing team training equips your workforce with the tools and mindset required to thrive. Remember, building trust and fostering psychological safety is not just a leadership skill—it is a business-critical strategy.

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