Why Should Psychological Safety Be a Top Priority for Every Employer?

Psychological safety is more than a buzzword—it is the key to healthy, engaged, and productive teams. It is the foundation of a thriving organization with satisfied, productive, and high-performing employees. But what exactly does psychological safety entail, and why should employers prioritize it?

What is psychological safety?

Though first coined by industry leaders Edgar H. Schein and Warren G. Bennis in the 1960s, the concept of psychological safety has evolved to meet the needs of today’s dynamic workplaces.

The American Psychological Association (APA) defines psychological safety as “a workplace climate in which workers are comfortable expressing themselves and believe they can take appropriate interpersonal risks.” Amy Edmondson, a leading scholar of psychological safety at Harvard University, says, “When people have psycho­logical safety at work, they feel comfortable sharing concerns and mistakes without fear of embarrassment or retribution. They are confident they can speak up and won’t be humiliated, ignored, or blamed. They know they can ask questions when they are unsure about something. They tend to trust and respect their colleagues.”

These definitions round out the idea of psychological safety and contain the same key factors: team members feel comfortable and secure in taking risks without fear of negative responses or repercussions. In practice, individuals feel confident speaking up, asking questions, admitting mistakes, or offering new ideas without fearing being judged, ignored, or ridiculed. This environment encourages open dialogue and fosters an environment where diverse perspectives are valued and creativity can flourish. Psychological safety is not about avoiding difficult conversations; instead, it is about ensuring that when these conversations happen, they are constructive and respectful.

So, why should employers make psychological safety a priority?

Studies consistently show that when employees feel psychologically safe, organizations benefit from improved innovation, stronger collaboration, and higher employee engagement and retention.

1. Enhanced Innovation and Creativity: Innovation flourishes when employees feel safe taking risks and suggesting new ideas without fear of failure. When employees know they will not be penalized for thinking outside the box, they are more likely to propose creative solutions to problems. This culture of experimentation is vital in industries that rely on continuous innovation to stay competitive.

2. Greater Team Collaboration: Teams that operate in psychologically safe environments communicate openly, resolve conflicts effectively, and support one another, which drives stronger collaboration. When employees do not fear being judged or blamed, they are more likely to ask for help or offer assistance, leading to a cohesive and supportive workplace. According to the APA’s 2024 Work in America Survey, employees who experienced higher psychological safety were significantly more likely to describe their company culture as offering opportunities for collaboration and teamwork.

3. Improved Employee Engagement and Retention: Employees who feel psychologically safe are more likely to be engaged in their work, more committed to their roles, and less likely to leave the organization. Additionally, employees who feel their voice matters are more engaged and loyal, leading to higher retention and reduced turnover costs.

These findings emphasize that fostering psychological safety is not only about enhancing workplace culture—it is a strategic business advantage that drives overall organizational success.