What is Psychological Safety at Work?

Psychological safety isn’t a buzzword. It’s the invisible force that determines whether your team feels safe to share ideas, admit mistakes, or raise concerns - and research shows that without it, engagement drops, productivity decreases and innovation stalls.

Psychological safety influences the employee experience - for better or worse - every single day. And it has huge potential impact on the operations and success of an organization. But as important as it is for both employees and employers, psychological safety is pretty rare. According to the Niagara Institute, only 50% of workers say their managers create psychological safety on their teams and 63% of employees don’t feel safe sharing their opinions. 

The good news for employers is that there is plenty of research and there are many tools you can use to introduce better practices that will lead to increased psychological safety in your workplace. Because mental health and wellbeing are not just about coverage - they start with culture.

Why does psychological safety matter in the workplace? 

There are plenty of reasons why psychological safety matters at work and the benefits seen by employers who put in the effort to ensure their culture makes people feel safe are numerous. 

Psychological safety in the workplace has a strong link to successful recruitment and retention. It is one of the top three things employees value most in today’s workplace, and according to the State of Talent Optimization Report, one in four companies say psychological safety is the top driver of employee retention. 

Psychological safety is also related to business success. When people don’t feel psychologically safe within an organization, it can stifle collaboration, innovation, and growth. This is because, according to Harvard Business School Professor Amy Edmondson, “overcoming challenges requires a strong sense of psychological safety.” 

But this isn’t just anecdotal. A 2017 Gallup study found that improving psychological safety in the workplace leads to a 27% reduction in staff turnover, a 40% reduction in safety incidents and a 12% increase in productivity. Research from PricewaterhouseCoopers has shown that businesses that invest in creating a mentally healthy workplace see an average of 230% return on every dollar invested.

Factors of a Psychologically Safe Workplace

Psychological safety is a concept that many of us feel intuitively - we know it when we experience it - but for most of us, it’s also difficult to fully define. Luckily for employers, there has been plenty of research into what goes into creating a workplace where employees feel psychologically safe.  

The 13 Factors of a Psychologically Safe Workplace were developed by the Mental Health Commission of Canada (MHCC) in collaboration with Ottawa Public Health. These factors are grounded in the National Standard of Canada for Psychological Health and Safety in the Workplace, which is a comprehensive framework aimed at promoting mental health and preventing psychological harm in Canadian workplaces. Together, these 13 factors contribute to mental wellness, reduced stress, and stronger teams.

According to another framework from the Dynamic Teaming course at Harvard Business School, a workplace must meet all of the four following dimensions to be psychologically safe:

• Willingness to help: employees believe asking for help is appropriate, and their colleagues are willing to provide it.

• Inclusion and diversity: employees feel a sense of belonging and that their diverse experiences and expertise matter.

• Attitude to risk and failure: employees view mistakes and failures as acceptable in favour of learning.

• Open conversation: employees perceive conversations as open, candid, and safe to contribute to.

Practical Frameworks for Psychological Health and Safety

Mary Ann Baynton is a leading expert on workplace mental health and the creator of many practical frameworks for introducing psychological health and safety in the workplace. She is also the Director of Collaboration and Strategy for Workplace Strategies for Mental Health - a Canada Life initiative providing numerous free employer tools and resources. 

Guarding Minds at Work is one such framework. It is a practical assessment and action-planning tool that is based on the 13 Factors. It helps organizations assess the key factors that contribute to psychological safety, for example workload management, recognition, and balance. And it provides a range of possible evidence and practice-based approaches that employers can review with their teams. Since this process should be meaningful, collaborative, and engaging, employers can use the list to start a conversation - asking employees which ideas they believe would make the greatest impact.

In addition to the tools mentioned above, McMaster University offers a number of tips as well as a playbook to help managers understand how to foster a psychologically safe environment. 

Psychological safety isn’t a one-time initiative - it’s an ongoing commitment. Employers should reassess their workplace using Guarding Minds at Work or similar tools on a regular basis. 

Culture and Coverage Go Hand in Hand

A strong workplace culture doesn’t just happen - it’s built intentionally through trust, respect, and a genuine commitment to employee wellbeing. Because cultural change is led from the top, vulnerability must be modelled at the leadership level. Therefore, it is important to train leaders on empathy, listening, and nonjudgmental responses. 

Employers can start building psychological safety by first assessing their culture. Great Place to Work has created a spectrum to help leaders understand how much performance is fueled by trust. 

But culture isn’t only about day-to-day interactions; it’s also reflected in the benefits an organization provides. Offering meaningful mental health coverage and access to support sends a powerful message that employee wellbeing isn’t just a talking point - it’s a priority.

Employers can reinforce employee support through their group benefits program by:

• Promoting access to Employee Assistance Programs (EAPs).

• Highlighting mental health coverage in their benefits plan.

• Providing training or lunch-and-learns using free tools from Workplace Strategies for Mental Health.

A psychologically safe workplace doesn’t just protect employees - it protects the organization. As your group benefits consultant, I can help you build an employee benefits package that supports both the mental and financial wellbeing of your people.