How to Create Psychological Safety at Work in 2025

Psychological safety is something every leader aspires to integrate into their team, yet many struggle to fully grasp its meaning or how to go about the integration effectively. According to recent McKinsey research, only 26% of leaders exhibit workplace behaviors that create a sense of psychological safety. 

Although the concept was introduced in the late 1990s, it has only recently become a popular topic, often mistaken as synonymous with a "healthy work culture." However, psychological safety is more specific while it is an essential element of a positive team environment, it represents just one part of a broader cultural framework. 

So, what exactly does psychological safety mean in a workplace context? Why is it so vital for team success? And most importantly, as a leader, how can you ensure that your team experiences it? Understanding and cultivating psychological safety is fundamental to building a resilient and high-performing team.

What is Psychological Safety?

Psychological safety is the assurance that individuals can freely express their thoughts, provide feedback, share disagreements, and voice opinions without fear of judgment or repercussions. It fosters an environment where team members feel valued, respected, and empowered to take risks or initiative without fearing rejection, humiliation, or punishment.

The concept of psychological safety was first introduced by Amy Edmondson, a professor at Harvard Business School, who defined it as:

"An absence of interpersonal fear. When psychological safety is present, people are able to speak up with work-relevant content." 

Despite its importance, many organizations struggle to create and sustain a culture of psychological safety. This lack of focus has tangible consequences. Research reveals that 24% of employees leave their jobs due to a lack of trust, and 25% question their organization's ability to provide a safe and supportive work environment.

Building psychological safety requires more than surface-level efforts; it demands consistent prioritization of trust, open communication, and inclusivity. By fostering an environment where employees feel secure and valued, organizations can boost engagement, innovation, and retention ensuring long-term success for both individuals and teams.

“If we notice a team isn't performing to its potential, spotting the issue is just the beginning. To fix it, we need to dig deeper and figure out what's causing the problem. Since psychological safety is key to a team's success, a lack of it could be the main reason for the struggle. By starting there, we have the best chance to pinpoint and address the root cause, turning things around effectively”

Ecommerce, SaaS, and Tech Companies,
Jeff Holman.

7 Reasons Why Psychological Safety Is Important At Work

A high-performing team prioritizes psychological safety just as much as physical safety and performance metrics. Creating a culture where employees feel valued, respected, and secure has numerous benefits, including:

1. Boosts Employee Engagement

When employees feel safe in their work environment, they are more likely to engage fully in their roles. Psychological safety fosters active participation, whether contributing to meetings, solving complex problems, collaborating on projects, or interacting with customers and peers.

A safe workplace encourages employees to stay focused and present, eliminating the tendency to disengage or count the hours until the day ends. This sense of belonging motivates them to bring their best selves to work daily.

2. Promotes Inclusivity

A psychologically safe workplace naturally cultivates inclusivity. It ensures that employees from diverse backgrounds regardless of gender, race, color, cultural heritage, or political beliefs feel welcome and valued. This inclusiveness leads to a more connected and collaborative team dynamic, where diverse perspectives enrich discussions and decisions. A safe environment enables every team member to thrive, contributing to a culture of equality and mutual respect.

3. Sparks Creativity and Innovation

Creativity flourishes when team members feel secure sharing their ideas without fear of judgment or criticism. In psychologically unsafe environments, great ideas often remain unspoken. By encouraging open communication and creating a safe space for expression, organizations can unlock their teams' creative potential, leading to innovative solutions and fresh perspectives.

4. Enhances Employee Well-Being

Mental health plays a pivotal role in overall employee performance. A psychologically safe environment reduces workplace stressors, ensuring employees feel mentally healthy and supported. It allows them to perform at their peak, avoid burnout, and maintain a positive outlook, contributing to a healthier and more productive workplace.

5. Cultivates Brand Ambassadors

Employees who feel respected and safe at work naturally become enthusiastic advocates for their organization. They take pride in their workplace and share their positive experiences with friends, family, and professional networks. This word-of-mouth praise enhances the company's reputation as a great workplace, attracting top talent and reinforcing the brand's image.

6. Reduces Employee Turnover

Psychological safety significantly impacts retention. Employees are far less likely to leave a company where they feel valued, respected, and safe. High turnover rates drain resources through recruitment and training costs and disrupt team dynamics. A culture of safety ensures long-term employee loyalty and reduces these costly challenges.

7. Improves Team Performance

Engaged, inclusive, and inspired employees are the backbone of high-performing teams. Psychological safety creates an environment where creativity, inclusivity, and well-being combine to drive exceptional results. When employees feel secure and appreciated, they naturally perform at their best, contributing to organizational success.

By treating psychological safety as a basic workplace necessity, organizations can create a thriving, innovative, and successful culture where everyone can excel. It's time for businesses to prioritize and embrace this critical component of modern work culture.

What are the 4 Stages of Psychological Safety?

Organizational anthropologist Timothy R. Clark outlines four stages of psychological safety: inclusion, learner, contributor, and challenger. This framework establishes a foundation of trust, creating an environment where employees feel safe sharing ideas and challenging others constructively.

Rather than treating these stages as a strict progression, it's essential to recognize that teams may navigate them differently. This adaptability respects each team's unique dynamics and fosters deeper inclusion and collaboration. By flexibly understanding and applying these stages, organizations can build a culture of workplace safety, trust and mutual respect.

4 Stages of Psychological Safety

1. Inclusion Safety

Inclusion safety lays the foundation for psychological safety by ensuring everyone feels a sense of belonging. Regardless of gender, race, religion, age, or cultural background, employees should feel welcomed and valued for who they are. When embracing diversity and celebrating differences, it establishes trust and eliminates the fear of discrimination.

Organizations should prioritize robust diversity and inclusion initiatives to create an environment where employees feel respected and included. This first step can establish psychological safety, as fear of bias or exclusion inhibits performance and engagement.

2. Learner Safety

Learner safety allows employees to make mistakes, ask questions, and seek feedback without fear of negative repercussions. Growth comes from experimentation, and an environment that supports curiosity and learning fosters innovation.

Leaders create a culture where personal and professional growth thrives by empowering employees to take risks and embrace failure as part of the learning process. Open communication, constructive feedback, and supportive mentorship are key to nurturing learner safety and enabling employees to confidently explore and develop their potential.

3. Contributor Safety

Contributor safety emerges when employees feel confident in sharing ideas and participating fully in their roles. When individuals know they are trusted to contribute, they become more engaged and take ownership of their work.

This stage requires leaders to provide autonomy while also offering guidance and support. Employees should feel empowered to take initiative and collaborate without fear of judgment. Contributor safety promotes active participation, enhancing overall team dynamics and productivity.

4. Challenger Safety

Challenger safety is the pinnacle of psychological safety. At this stage, employees feel secure enough to question the status quo, propose new ideas, and offer constructive feedback. Encouraging respectful debate and challenging ideas fosters a culture of innovation and continuous improvement.

Organizations that embrace challenger safety empower their teams to think critically, solve complex problems, and drive the organization forward. Leaders play a crucial role in modeling openness to feedback and valuing diverse perspectives, ensuring this stage of safety flourishes.

By cultivating these four stages of psychological safety, organizations can build a resilient, innovative, and high-performing culture where every individual feels valued and empowered to contribute their best.

How to create psychological safety at work

Developing a culture of psychological safety at work is paramount to your business's success. So, what are the steps to get there? 

Here are 9 ways to create a safe and prosperous workplace diversity for every employee.

1. Understand and Address Your Team's Unique Needs

To foster a supportive and productive workplace, prioritize understanding and meeting your team members' preferences. Managers often make decisions without consulting their employees, leading to disengagement. Ask employees about their preferred communication styles, desired frequency of one-on-one meetings, and feedback expectations.

Remember, a single check-in isn't enough. Regular follow-ups are essential, as employees' needs may shift based on their current tasks or challenges. Despite its simplicity, many organizations fall short in this area Kincentric reports that 49% of employees feel that their organization isn't delivering the promised experience.

Investing time in understanding what motivates and supports your team is vital. Whether acknowledging their hard work, providing growth opportunities, or ensuring their voice is heard in meetings, each employee's needs are unique.

2. Foster Open and Collaborative Communication

Two-way communication is key to a company's success. Create a feedback culture where employees and managers can share their thoughts openly. Asking for feedback is just the start what truly matters is taking action based on that feedback. When employees see results, they feel heard and valued. Work together to discuss feedback and plan improvements.

Employees who feel ignored may stop sharing their thoughts, leading to disengagement. It can harm workplace relationships and employee engagement efforts. In fact, 62% of employees want to be able to have hard conversations at work but don't feel safe doing so.

To improve communication, use tools like pulse surveys. These surveys collect feedback regularly, making employees feel their opinions matter. Unlike yearly surveys, pulse surveys focus on what's happening now and give a clearer view of workplace issues. This approach helps you solve problems early and keeps employees engaged.

3. Build a Foundation of Trust and Respect

A workplace built on mutual trust and respect free from blame allows employees and managers to feel safe and authentic. However, while 86% of executives claim to trust their employees, only 60% of employees feel this trust. Strengthening trust is critical for improving psychological safety at work.

Trust is a cornerstone of healthy manager-employee relationships, significantly influencing commitment, productivity, and communication. A trust-based culture boosts motivation, reduces absenteeism, and increases retention. For instance, employees who trust their employers are 260% more motivated to work, take 41% fewer sick days, and are 50% less likely to search for other jobs. Yet, 1 in 4 workers report a lack of trust in their employer, with employers often overestimating trust levels by nearly 40%.

Building trust requires integrity, authenticity, and empathy. Organizations can demonstrate trust by reducing hierarchical barriers and offering employees autonomy. Actions, not just words, are key to fostering a culture of trust and connection.

4. Emphasize Coaching for Growth and Engagement 

Coaching is a powerful tool for fostering psychological safety and boosting employee engagement. Despite its value, there's a significant gap in access. While 97% of employees say mentorship is valuable, only 37% have a mentor, and 63% of women have never had formal mentorship in their careers.

Managers play a vital role in bridging this gap. They should prioritize mentoring by dedicating time to understanding and supporting their team members. Encourage leaders to actively listen during one-on-one meetings and provide opportunities aligned with employees' goals and aspirations.

A coaching mindset creates a collaborative and supportive environment where employees feel empowered to grow, contribute, and excel. This approach not only enhances individual performance but also strengthens company loyalty. Over time, a coaching-focused workplace nurtures trust, innovation, and engagement—key elements for sustaining a thriving and resilient organization.   

5. Foster a Culture of Innovation and Bold Thinking

Fostering innovation must be a priority to build a truly dynamic and forward-thinking organization. A growth mindset should naturally encourage employees and managers to bring creative, even radical, ideas to the table. It's essential to create an environment where individuals feel safe respectfully challenging one another and proposing unconventional solutions without fear of judgment. 

It is especially critical given the stark contrast between companies with strong innovation cultures and average performers. Employees at less innovative organizations are 3.6 times more often to fear career repercussions for presenting bold ideas. This fear stifles creativity and keeps teams from reaching their full potential.

Encouraging innovation involves cultivating a culture where bold thinking is celebrated, and unconventional ideas are explored. This approach inspires employees to think beyond boundaries, leading to groundbreaking innovations and transformative solutions. A safe space for idea-sharing improves individual engagement and morale and drives team performance and organizational competitiveness. By valuing innovation, companies can stay ahead in a rapidly evolving landscape and foster a culture of continuous improvement and creativity.

6. Promote a Culture of Recognition and Appreciation

Frequent appreciation fosters inclusivity and strengthens team trust by making employees feel valued and connected. According to the Achievers Workforce Institute (AWI), 53% of employees who regularly receive recognition from their managers report higher levels of trust, psychological safety, and a sense of belonging. It highlights the powerful role appreciation plays in creating a supportive workplace. 

Consider utilizing an employee leadership development recognition platform to ensure consistent recognition. These tools often integrate seamlessly with popular HR software, making it easy to embed recognition into daily workflows.

Recognition platforms also allow employees to exchange real-time appreciation. This instant feedback system enables team members to celebrate each other's achievements as they occur, reinforcing positive behaviors and fostering a collaborative work environment. Immediate and frequent recognition boosts employee morale and strengthens team dynamics, ensuring every individual feels seen and valued for their contributions.

7. Prioritize Empathy to Strengthen Workplace Connections

Empathy is a critical yet often underutilized skill in many workplaces. Demonstrating genuine understanding and care for others' perspectives fosters trust, collaboration, and stronger team dynamics. However, a 2023 EY study shows that 52% of employees perceive their organization's empathy efforts as insincere, underscoring the need for more authentic approaches. 

To cultivate empathy in the workplace, practice active listening by summarizing and reflecting on what you've heard. This simple act shows you value others' input and are dedicated to understanding their viewpoints. Additionally, pay attention to nonverbal communication—maintain open body language, attentive posture, and a genuine expression of interest to convey respect and receptiveness. 

Express gratitude for feedback and ideas, reinforcing a culture of appreciation and understanding. When empathy becomes a cornerstone of workplace interactions, it strengthens teamwork and builds a foundation of mutual respect, leading to sustained collaboration and a more harmonious work environment.

8. Encourage Teams Through Inclusive Decision-Making

Employees value psychological safety as a top priority, with 84% ranking it among their top three workplace needs just behind pay raises and flexible work options. Without fostering inclusion and flexibility, even the most team-focused models risk failing.

Involve your team in the decision-making process to create better outcomes. Actively seek and review their feedback together to ensure their voices are heard. This inclusive practice builds a sense of belonging and strengthens a company's culture, creating an environment where every team member feels valued and engaged. 

Including teams in decisions also enhances transparency, a cornerstone of psychological safety. Poor internal communication can undermine trust and hurt organizational performance. To develop a transparent and safe workplace, ensure that information is shared openly, is easily accessible, and promotes mutual understanding. An inclusive approach strengthens teamwork, boosts morale, and drives sustained organizational success.

9. Empower Managers to Foster Psychological Safety

Although 89% of business leaders acknowledge the importance of psychological safety, only 27% of managers feel adequately trained to handle challenging conversations with their teams. This gap highlights a critical need for targeted development, as unprepared managers may inadvertently hinder open dialogue, leaving employees feeling unheard or undervalued. 

Organizations must invest in comprehensive manager development programs emphasizing communication skills, conflict resolution, and emotional intelligence. These skills enable managers to create a safe and supportive environment where team members feel valued and respected. When managers are empowered, psychological safety flourishes, driving greater collaboration, performance, and team engagement. 

Additionally, managers should foster a culture of openness where team members feel comfortable asking questions, seeking clarity, and brainstorming without fear of judgment. Encouraging this mindset ensures every suggestion or comment is treated as valuable.

“Psychological safety means feeling confident you can speak up whether to share ideas, ask questions, or admit mistakes without fear of punishment or judgment. For too long, workplaces made people feel they had to hide parts of themselves, like personal struggles or identities, hurting both individuals and the organization.”

VP Customer Inclusion, Disability Community,
Hale Pulsifer .

Case study- OCFO: PSYCHOLOGICAL SAFETY INITIATIVE

Goal: To create a psychologically safe environment that fosters more creative and effective teams.

Challenge

1. The Office of the Chief Financial Officer (OCFO) identified psychological safety initiative as a key area for improvement, recognizing it as the shared belief that a team is safe for interpersonal risk-taking and making mistakes.
2. During the OCFO's three-year roadmap development, "Enhance Psychological Safety" was identified as a primary project under the broader 'Enhance OCFO IDEA Program' initiative. This focus reflected the need to prioritize psychological safety as an integral part of the OCFO's organizational growth.

Solution

The OCFO adopted a holistic strategy to address this challenge, focusing on four overlapping themes:

1. Leadership: Inclusive leadership emphasizes leading by example to instill trust and inspire behavioral change.
2. Foundational: Established clear boundaries for acceptable and unacceptable behaviors while prioritizing psychological safety as a core value.
3. Current Work Environment: Evaluated work modalities and identified areas of disparate staff treatment to create a more inclusive workplace.
4. Division Culture: Ensured transparency in staff growth and development processes while championing inclusion and fairness.

Impact

1. Transparency and Role Modeling: OCFO leaders demonstrated transparency in decision-making and initiatives, earning positive feedback from employees who appreciated their commitment to "modeling the way" and "walking the talk."

2. Enhanced Communication and Engagement: Psychological safety became a central topic of discussion in manager meetings, monthly newsletters, and OCFO town halls. Updates were regularly shared, and OCFO IDEA Council lunch & learns were introduced to align discussions with psychological safety principles.

These efforts have increased awareness and fostered open communication and stronger team collaboration, driving a culture of trust and inclusion across the OCFO.

The OCFO's Psychological Safety Initiative demonstrates a transformative approach to fostering a culture of trust, inclusion, and innovation. By embedding psychological safety into leadership practices, organizational values, and workplace culture, the initiative has set a strong foundation for more creative, cohesive, and effective teams. This case highlights the power of prioritizing psychological safety to drive organizational growth and employee well-being, showcasing a model that other organizations can emulate for lasting success.

Assessing Psychological Safety in the Workplace

Creating a psychologically safe workplace enhances employee well-being and drives better performance and retention. Employees who feel secure and engaged are more likely to contribute fully and less likely to leave. 

However, measuring psychological safety can be challenging. It requires a thoughtful approach to gauge employees' feelings about their workplace. One effective method is through confidential surveys, which allow employees to express themselves without fear of judgment or repercussions. These surveys provide senior leaders valuable insights into the workplace environment and areas needing improvement. 

If fostering psychological safety is a priority for your organization, consider exploring targeted training. Our corporate psychological safety at work training course equips teams with the knowledge and tools to build a supportive and inclusive workplace culture. Learn more about how Edstellar can help your organization proactively enhance psychological safety and create a thriving, engaged workforce.