Creating a psychologically safe workplace: Why it matters and how leaders can drive change
Once considered a ‘nice-to-have’, psychological safety is now recognized by leaders as essential to the safety, sustainability, and performance of an organization.
Lorenzo Gallinari psychologist and Principal Consultant with JMJ explores what the term psychological safety means, why it’s significant for your organization and how, as a leader, you can embed it within your workplace culture.
Defining psychological safety
Psychological safety, at its core, is about creating an environment where people can express opinions, admit mistakes, take risks, and engage openly with colleagues and leaders without fear or blame or retribution. Picture the freedom a child should have when talking openly with parents or teachers—that same concept extends to interactions with managers and team members in the workplace.
The more senior the leader, the greater their influence on whether people feel safe speaking openly. That influence is shaped by everyday behavior and communication.
Leaders are the architects of organizational culture
Leaders’ words, tone and body language shape how people experience the work environment. For instance, when the CEO of a 100,000-employee organization addresses the workforce, their words and demeanor can either stir anxiety and fear or build confidence and trust.
In my experience, leaders vary considerably in their awareness of how they communicate and the effect they have on others. Some understand it deeply, while others are less conscious of it. This is understandable. Self-awareness and communication are rarely given enough attention in formal leadership development or decisions about career progression.
The business case for psychological safety
Connecting psychological safety to organizational performance helps leaders understand why it matters. Safety performance, for example, depends on accurate information about what is happening across the business. Leaders can only access that insight when employees trust them enough to share it. Without a psychologically safe environment, people may withhold essential information, limiting leaders’ ability to make informed decisions and strengthen performance.
Psychological safety is therefore central to meaningful organizational performance.
Why psychological safety matters in today’s workplaces
Work and personal lives are more connected than ever, and people are increasingly willing to talk openly about workplace pressures and mental health. Expectations have also changed. Employees are less willing to accept environments that disregard their mental health and well-being. Leadership is evolving too. Traditional, command-and-control approaches are less effective within a workforce that expects greater transparency and collaboration. Leaders who communicate openly and invite different perspectives are better placed to build trust.
Distinguishing between psychological safety, psychological well-being, and mental health
It’s essential to differentiate between psychological safety, psychological well-being, and mental health. Psychological safety relates to the workplace environment and describes to the freedom employees feel to express themselves, take risks, and voice concerns without fear of retribution. It’s about creating a space where open communication and trust can develop. On the other hand, psychological well-being encompasses the overall state of an individual’s mental health. It reflects how content and balanced a person feels in various aspects of their life, including work. In contrast, mental health delves deeper into an individual’s psychological state, encompassing conditions like anxiety, depression, and stress. While psychological safety contributes to psychological well-being, mental health is a broader concept that addresses specific mental and emotional conditions. All three are interconnected. Understanding the distinctions helps leaders offer more thoughtful support to their teams.
Shifting culture begins with understanding how people experience it today. Do they feel able to speak openly? What happens when they challenge a decision or admit a mistake? A culture assessment can show where trust is strong and where people may be holding back. Leaders also need to understand how their own behavior shapes that experience. Tools such as JMJ’s Safety Leadership Characteristics profile and DEV™ offer insight into leadership style and its effect on team dynamics. Together with feedback and coaching, these insights help leaders see how others experience their leadership and where they may need to lead differently.
Patience is key
Cultural change is a gradual process, particularly in large, complex organizations. It can be helpful to begin with a particular business unit, function or site and build from there. The initial goal is to establish pockets of psychological safety and integrate desired performance and behaviors into everyday operations. Creating opportunities to model these behaviors in daily business interactions is vital. Meetings and other everyday touchpoints give leaders opportunities to create a psychologically safe environment in practice. Starting where change can make the greatest difference helps build trust, strengthen engagement and demonstrate its value to leaders across the organization. You can’t create a psychologically safe workplace overnight. It takes consistent effort across the organization and must be reinforced as new projects begin, team members and contractors join, and new leaders step into their roles.
Psychological safety is not a one-time initiative. It is shaped by how leaders communicate, respond to concerns and create space for people to contribute every day. Those everyday interactions influence employee well-being and the organization’s ability to perform.
Gain expert insights: watch the keynote
Explore the critical role of psychological safety in organizational performance. Watch my presentation, ‘Psychological Safety: The Invisible Ingredient of Organizational Performance,’ delivered at the 2023 Dansk Offshore Safety Conference. Learn how to create a transformative work environment.”
Lorenzo Gallinari at the Dansk Offshore Safety Conference, 2023