Creating a Psychologically Safe Workplace: Strategies for Success

A healthy work environment is important for employee wellbeing and organisational success. But what does it take to create a psychologically safe workplace where employees feel comfortable taking risks, sharing ideas, and speaking up without fear of repercussions?

What is psychological safety?

Psychological safety is the shared belief that you can speak up, take risks, and be vulnerable without fear of embarrassment or punishment. It's the foundation of a workplace where employees feel accepted, respected, and free to be themselves.

When employees feel psychologically safe, they're more likely to:

Share their ideas and opinions
Ask questions and seek feedback
Admit mistakes and learn from them
Take risks and innovate

According to Harvard Business School professor Amy Edmondson, who coined the term, psychological safety is "a sense of confidence that the team will not embarrass, reject or punish someone for speaking up". This confidence is crucial for fostering open communication, creativity, and innovation in the workplace.

Google's Project Aristotle, a study of 180 teams over three years, found that psychological safety was the most important factor in team effectiveness. Teams with high levels of psychological safety performed better, were more innovative and had higher employee engagement and job satisfaction.

The benefits of a psychologically safe workplace

So how can you tell if your workplace is psychologically safe? Start by asking yourself these questions:

Do employees feel comfortable speaking up and sharing ideas, even if they differ from the majority opinion?
Are mistakes seen as learning opportunities, or are they punished?
Do employees trust each other and feel respected by their colleagues?
Is there a culture of open communication and feedback?

If you answered no to any of these questions, it may be time to take a closer look at your workplace culture and identify areas for improvement.

You can also assess psychological safety through anonymous surveys, employee observations, and regular check-ins with team members. These methods can help you gauge the level of psychological safety in your workplace and identify any issues that need to be addressed.

Creating a psychologically safe workplace: 6 strategies infographic

Creating psychological safety at work

Creating a psychologically safe workplace takes commitment from everyone, especially leaders. Here are some key strategies for building psychological safety in your team:

1. Address all safety concerns immediately

Psychological safety starts with physical safety. This means assessing the inherent risks in your organisation that could influence the mental health of your employees. Some organisations have challenging risk profiles that include interfacing with the public, isolation, night shifts, difficult or stressful tasks, and handling dangerous goods or heavy machinery. To increase safety in the workplace:

Assess incident reports to improve security and emergency protocols

Listen to the needs and concerns of workers

Address any instances of bias, discrimination, or harassment immediately

2. Transform your company culture

Avoid perfectionism: This may sound counterintuitive but research shows perfectionists are more distrusting, overreact to mistakes, and micromanage others
Celebrate individual and team successes
Provide support and resources for team members to do their best work
Address conflicts and issues in a timely and trauma-informed way
Use pulse surveys to assess your company culture

3. Encourage risk-taking and learning

Innovation and growth require taking risks and learning from failures. To encourage risk-taking and learning in your team, you should:

Frame failures as learning opportunities and encourage team members to share their lessons learned
Provide opportunities for professional development and skill-building
Celebrate successes and milestones, no matter how small

4. Foster open communication and feedback

Open communication and feedback are essential for building psychological safety. You should:

Encourage team members to voice their opinions and contribute ideas, even if they challenge the prevailing viewpoint
Provide regular opportunities for feedback, both positive and constructive
Implement whistleblowing tools and anonymous surveys to understand your employees

5. Prioritise inclusion and diversity

To prioritise inclusion and diversity in your team, you should:

Create a welcoming and inclusive environment for people from all backgrounds
Provide equal opportunities for growth and advancement
Encourage team members to share their unique perspectives and experiences

6. Support mental health in the workplace

To support mental health in your workplace, you can:

Offer mental health support and resources, such as counselling services through employee assistance programs and days off for mental health and well-being
Encourage open communication about mental health and reduce the stigma around seeking help
Create a culture of self-care and work-life balance
Provide training for managers on how to support team members' mental health

By prioritising mental health in your workplace, you can create a more supportive and psychologically safe environment for all employees.

Creating a psychologically safe workplace: anonymous reporting tools for employees

The role of anonymous reporting and whistleblowing tools in the workplace

Anonymous reporting and whistleblowing tools play a crucial role in creating a psychologically safe workplace. These tools empower employees to speak up about workplace issues like discrimination, harassment, bullying, and fraud without fear of retaliation.

One of the main advantages of anonymous reporting is that it allows employees to raise concerns confidentially. This is particularly important for sensitive issues that employees may be hesitant to report through formal channels. By providing a safe and secure way to report misconduct, anonymous reporting tools can help organisations identify and address problems before they escalate into more serious issues.

Anonymous reporting and whistleblowing tools can provide valuable insights into the overall health and well-being of an organisation. By analysing the types of reports received and identifying patterns or trends, organisations can proactively address issues related to workplace culture, employee engagement, and psychological safety. This data-driven approach can help organisations make informed decisions and prioritise initiatives that promote a positive and supportive work environment.

Regulations on psychological health

In Australia, psychological health is governed by the Work Health and Safety Act 2011. The Work Health and Safety Regulations in Australia have undergone recent amendments, effective from 1 April 2023, placing a greater responsibility on employers to proactively address and manage psychosocial safety risks in the workplace.

The updated regulations provide more specific details on how to meet WHS duties and protect employees from psychosocial hazards and risks. These changes were key recommendations of the 2018 Review of the model WHS laws.

Psychosocial hazards encompass various aspects of work design, job demands, and interpersonal dynamics that can adversely impact employees' mental health, emotional well-being, and overall psychological functioning. These hazards create stress and reduce employees' ability to cope, potentially causing psychological and physical harm.

According to Safe Work Australia, common psychosocial hazards at work include:

Job demands
Low job control
Poor support
Lack of role clarity
Poor organisational change management
Inadequate reward and recognition
Poor organisational justice
Traumatic events or material
Remote or isolated work
Poor physical environment
Violence and aggression
Bullying
Harassment, including sexual and gender-based harassment
Conflict or poor workplace relationships and interactions

To ensure a psychologically safe environment, employers must use the hierarchy of controls to manage psychosocial hazards, as set out in the WHS Regulations. This step-by-step approach ranks controls from the highest to the lowest level of protection, aiming to eliminate or reduce risks.

How Elker can help

At Elker, we understand the importance of creating a psychologically safe workplace. Our anonymous reporting platform empowers employees to speak up about workplace issues like discrimination, harassment, bullying, and fraud, without fear of negative consequences.

Our tools for early detection of workplace issues, including end-to-end encryption, live chat, customisable reporting pathways, and comprehensive case management, provide employees with a safe and secure way to raise concerns. Our real-time analytics help organisations gain insights into workplace trends and highlight areas needing intervention, while our customisable workflows adapt to the needs of each company.

By partnering with Elker, organisations can take a proactive approach to creating a psychologically safe workplace, where employees feel supported, valued, and empowered to speak up and drive positive change.

Book a demo today and see how Elker can transform your organisation, fostering innovation, creativity, and employee wellbeing.

Frequently asked questions

What are the 4 components of psychological safety?

According to Dr. Timothy Clark, the four components of psychological safety are:

Inclusion safety: Feeling accepted and included as a valued team member. This component allows each person to be their authentic self without fear of rejection or embarrassment.
Learner safety: Feeling safe to learn, ask questions, and make mistakes without fear of being seen as ignorant or incompetent. This component promotes growth and development.
Contributor safety: Feeling safe to contribute ideas and share feedback without fear of criticism or retribution. This component encourages active participation and innovation.
Challenger safety: Feeling safe to challenge the status quo and speak up about potential issues or improvements. This component enables constructive dissent and continuous improvement.

By focusing on these four components, organisations can create psychological safety and build a supportive work environment where employees feel comfortable taking risks and expressing their perspectives.

What is a psychologically healthy workplace?

A psychologically healthy workplace prioritises the mental well-being of its workers and creates an environment that supports their psychological needs. This includes promoting open communication, building trust, and fostering a culture of respect and inclusion.

In a psychologically healthy workplace, employees feel safe to talk about their feelings, share challenges, and seek support when needed. They are encouraged to maintain a healthy work-life balance and are provided with resources to manage stress and promote overall well-being.

Psychologically healthy workplaces also prioritise employee engagement, job satisfaction, and personal growth. They provide opportunities for learning and development, recognise and reward achievements, and promote a sense of purpose and meaning in work.

By creating a psychologically safe and healthy work environment, organisations can improve employee well-being, productivity, and overall success.

What are the 5 steps to psychological safety?

To create psychological safety and build a supportive work environment, organisations can follow these five steps:

Establish trust: Create a foundation of trust by being transparent, following through on commitments, and treating all team members with respect and fairness. Trust is essential for fostering psychological safety.
Encourage open communication: Create an environment where employees feel safe to share ideas, ask questions, and provide feedback without fear of negative consequences. Encourage active listening and respond constructively to concerns and suggestions.
Promote inclusion and diversity: Foster a welcoming and inclusive environment for people from all backgrounds, and celebrate the unique perspectives and experiences they bring to the team. Encourage respectful dialogue and address any instances of discrimination or bias.
Support employee well-being: Prioritise employee mental health by providing resources and support, such as employee assistance programs, mental health days, and stress management training. Encourage work-life balance and create opportunities for social connection and support.
Lead by example: Leaders should model the behaviours they want to see in their team, such as admitting mistakes, showing vulnerability, and actively seeking feedback. They should also prioritise psychological safety in their decision-making and communication.

By following these steps consistently and with resilience, organisations can effectively build psychological safety and create a supportive and collaborative work environment.

How to create a psychologically safe work environment?

Creating a psychologically safe work environment requires a focus on fostering a culture of trust, respect, and open communication. Here are some strategies for making your workplace psychologically safe:

Encourage open dialogue: Create opportunities for employees to share their ideas, perspectives, and concerns openly. Encourage active listening and respond constructively to feedback, even if it's bad news.
Increase physical safety: Some organisations have challenging risk profiles such as interfacing with the public, isolated workers, night shifts or handling dangerous goods or heavy machinery. Increasing the safety of your workplace by assessing incident reports, improving security and emergency protocols, and listening to the needs of workers will improve team psychological safety at work.
Build trust: Be transparent in decision-making, follow through on commitments, and treat all employees with respect and fairness. Encourage team members to rely on and support each other.
Promote inclusion: Foster a diverse and inclusive workplace where everyone feels valued and respected, regardless of their background or position. Celebrate the unique perspectives and experiences that each person brings to the team.
Provide support: Offer resources and support for employee mental health and well-being, such as employee assistance programs, mental health days, and stress management training. Encourage work-life balance and create opportunities for social connection and support.
Lead by example: Leaders should show emotional intelligence and model the behaviours they want to see in their team, such as admitting mistakes, showing vulnerability, and actively seeking feedback. They should prioritise psychological safety in their decision-making and communication.

By implementing these strategies consistently and with resilience, organisations can create a psychologically safe work environment where employees feel supported, valued, and empowered to bring their best selves to work.

What is psychological safety at the workplace?

Psychological safety at the workplace refers to the belief that one can speak up with ideas, questions, concerns, or mistakes without fear of punishment, rejection, or embarrassment. It is a shared belief that the team is safe for interpersonal risk-taking and that one will not be punished or humiliated for speaking up with ideas, questions, concerns, or mistakes.

In a workplace with high psychological safety, employees feel comfortable being themselves, sharing their thoughts and feelings, and taking risks. They trust that their colleagues and leaders will respond with empathy and understanding, rather than blame or retaliation.

Psychological safety is essential for fostering innovation, creativity, and continuous improvement in the workplace. When employees feel safe to speak up and share their ideas, they are more likely to identify problems, suggest solutions, and collaborate effectively with their colleagues.

Creating psychological safety in the workplace requires ongoing effort and commitment from leaders and team members alike. It involves building trust, promoting open communication, and creating a culture of respect and inclusion.

What is psychological safety in Australia?

In Australia, psychological safety is recognised as a critical factor in creating a healthy, productive, and innovative work environment. The concept has gained increasing attention in recent years, as organisations seek to promote employee well-being and drive business success.

According to a recent study by the Australian Workplace Barometer, only 14% of Australian workers reported being in a workplace with a high level of psychosocial safety. This highlights the need for organisations to prioritise psychological safety and take steps to create a more supportive and inclusive work environment.

To promote psychological safety in Australian workplaces, organisations are focusing on several key strategies, such as:

Providing mental health support and resources for employees
Encouraging open communication and feedback
Promoting diversity and inclusion
Providing training for leaders on how to create psychological safety
Regularly assessing the level of psychological safety in the workplace

By prioritising psychological safety, Australian organisations can create a more supportive and collaborative work environment that benefits both employees and the organisation as a whole. This is particularly important in today's society, where mental health and well-being are increasingly recognised as critical factors for overall health and success.