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Psychological Safety: What It Is And Why It’s Good For Business

Forbes Coaches Council

CEO and Founder at Bright Wire, Canada's premier Leadership Development and Executive Coaching firm.

Psychological safety is a term used and heard a lot today. But what does it mean, and what does it mean for business? While the term was coined earlier, the phrase “team psychological safety” is attributed to Amy Edmondson, and her exploration and explanation of it are often given credit for crystallizing this concept within the context of modern workplace psychology. According to Edmondson, it best describes an environment in which individuals feel they can take certain interpersonal and professional risks without fearing judgment or backlash. It is only truly possible within a climate that allows and encourages team members to share ideas, voice concerns and express their authentic selves confidently and without apprehension or, worse, fear.

Why Psychological Safety Matters

The cultivation of psychological safety within organizations today is not merely a humane approach to doing business but rather a strategic imperative. More than psychological safety’s presence being a boon, its absence can impede progress, hinder creativity and stifle both individual and collective growth within an organization. Conversely, its presence fosters an atmosphere conducive to exploration, learning and adaptability, thereby fortifying the foundation for organizational resilience and success.

Psychological safety is a catalyst that yields heightened innovation, collaboration and performance, making it something for leaders in business to prioritize, pursue and safeguard once it’s achieved. When employees experience and perceive their workplace environment as a safe one in which they can openly communicate, they are more inclined to contribute their most innovative ideas, engage in constructive conversations and actively participate in all aspects. For these reasons, establishing psychological safety at both the team and organizational levels can be critical to businesses' success and should therefore be a top priority for leaders.

Psychological Safety And Leadership

Leaders have a pivotal role to play in cultivating a culture that prioritizes and benefits from psychological safety. As outlined in my organization's article focused more broadly on "Mastering Leadership Skills for the Modern World," emotional intelligence has become of paramount importance for today’s business leaders. Emotional intelligence and empathy are closely linked, as of course are these things and psychological safety.

Empathy serves as a vehicle for leaders to actively demonstrate their commitment to fostering psychological safety within the organizational framework. Leaders who exhibit empathy inspire a culture wherein authenticity, vulnerability and inclusivity are not only embraced but also celebrated, which does a lot to help further the degree of psychological safety present within an organization. By exemplifying these skills, actively listening and responding empathetically to ensure all voices are heard and valued, leaders at all levels of an organization can make huge strides toward creating a psychologically safe environment for all.

Moreover, psychological safety significantly impacts team dynamics. Psychologically safe settings are breeding grounds for everything leaders should seek to encourage and enable. When individuals feel secure, they are more forthcoming with their opinions and work product. This allows for a maximum number of team members to leverage each other's skills, strengths and insights to achieve collective goals. These cooperative practices bolster trust within teams, departments and entire organizations, thereby increasing engagement and job satisfaction, boosting morale and even amplifying overall productivity.

Individuals experiencing psychological safety are also less afraid to admit mistakes or shortcomings, making them more likely to seek guidance or clarification when needed. This engenders a culture of learning and development where errors are viewed as opportunities for growth rather than as liabilities. As a result, teams become more resilient, adaptive and capable of navigating challenges effectively.

What To Take Away From This

In the modern workplace, psychological safety is more than a buzzword. It’s a transformative force that can and should be harnessed by leaders to shape businesses’ success. The imperative nature of psychological safety transcends mere workplace ethics—its absence could impede progress and stifle innovation, while its presence nurtures exploration and fortifies an organization's resilience.

Leadership in this context becomes an essential lever to pull toward fostering psychological safety. Emotional intelligence, closely entwined with empathy, becomes the conduit through which leaders cultivate an environment of inclusivity, authenticity and vulnerability. By actively listening and responding empathetically, leaders empower all voices, helping ensure a psychologically safe space for all.

Moreover, psychological safety reshapes team dynamics. It instills confidence, encouraging individuals to contribute openly and collaborate effectively. Mistakes are reframed as learning opportunities, fostering a culture where growth thrives amid challenges.

Ultimately, the implications for leaders are profound. Prioritizing psychological safety isn't just about fostering a comfortable workplace—it's about cultivating a fertile ground for innovation, collaboration and resilience to take root and grow. As leaders champion these principles, they steer their organizations toward a future where every individual feels valued, heard and empowered—a testament to the enduring impact of psychological safety in driving sustained business success.


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