Why You Need Psychological Safety At Work For Employee Retention

All organizations have a legal and ethical obligation to provide a safe workspace to their employees. Safety in this context does not end at mere physical safety or protection against workplace injuries and illnesses. Employees also deserve a workplace where they feel psychologically and emotionally safe. In this article, we will explore the significance of psychological safety at work and how it affects your ability to attract and retain top talent.

What Is The Meaning Of Psychological Safety?

Coined by Amy Edmondson, psychological safety is “a belief that one will not be punished or humiliated for speaking up with ideas, questions, concerns or mistakes, and that the team is safe for interpersonal risk-taking.”

In a workplace setting, it’s the absence of any fear or anxiety when interacting with your colleagues or seniors. Fear or a lack of psychological safety manifests itself in feelings of nervousness, apprehension, or a general feeling of discomfort during social/personal interactions in the workplace.

In a Harvard Business Review article, Amy Gallo defines psychological safety from a team perspective. It is a belief shared between members that they can express their concerns and ideas, ask questions, and even admit their mistakes without fear of consequences.

An employee working in a psychologically unsafe office may feel excessive fears about scrutiny, criticisms, or getting embarrassed in front of colleagues. A perceived lack of respect or acceptance from others can lead to intense feelings of isolation in the workplace.

In contrast, an employee in a psychologically safe workplace feels confident about voicing their opinions and taking the initiative in projects. They feel comfortable in their natural selves during interpersonal interactions and feel respected and accepted by all.

What Is The Significance Of Psychological Safety In The Workplace?

Based on Edmondson’s extensive research and subsequent studies by other authors, psychological safety is now widely considered as a vital component for healthy and productive organizations. The latest among these is a 2022 study by the researchers at The University of Tokyo which included 200 employees in a high-stress sector like healthcare.

A McKinsey quarterly brief echoes similar sentiments, calling psychological safety as the critical factor behind the creation of well-performing teams. Employees in such teams display higher morale, significantly improved creativity levels, the freedom to speak their minds, and the confidence to take some risks.

Organizational Factors That Affect Psychological Safety In Workplaces

When employees feel that a workplace is psychologically unsafe, it can have a devastating impact on their mental health. The Canadian Centre for Occupational Health and Safety highlights more than a dozen organizational factors that can impact the psychological health of employees.

In organizations that do not respect the need for better work-life balance, employees end up facing high levels of stress, dissatisfaction, fatigue, and a host of other issues ranging from depression to high cholesterol.

Workplaces that do not encourage civil and respectful interactions often have high levels of workplace bullying, interpersonal conflicts, and other forms of aggressive behaviours which can lead to increased feelings of stress, anxiety, and depression among employees.

Leadership plays a defining role in the erosion of psychological safety in the workplace. According to a recent poll in 2023, 67% of Canadian professionals have applied to another job because they are unhappy with their current work situation.

And it is not just physical offices that are affected by the lack of psychological safeguards. According to Bryan Robinson, Professor Emeritus at the University of North Carolina and an expert on work-life balance and burnout, the risk of stress and burnout can be even higher in modern hybrid workplaces.

A Forbes article highlights ten signs that indicate the lack of psychological safety measures in a hybrid workplace. They include the absence of any managers working in remote positions, scheduling of team meetings at odd hours, and lack of career path for remote/hybrid employees.

Why You Can No Longer Afford To Ignore Psychological Safety In Your Workplace

One in five Canadians lives with mental health challenges, with working Canadians in the early stages of their career being the most affected, according to a 2021 survey from Canada Life and Workplace Strategies for Mental Health. Employees in the education sector said they rarely or never felt safe to speak up at work (21%), while only 47% of employees in large workplaces of 500+ employees said they experienced a positive workplace culture.

There is a clear connecting link between psychological safety and employee retention. With the ever-widening skill gap, nearly half (44.5%) of businesses in Canada are finding it difficult to get candidates with the skills needed for their roles, particularly in construction, retail, accommodation and food services. Business leaders who focus on the creation of inclusive workplaces and positive company culture will benefit in the highly competitive hiring landscape. Such organizations will find it easier to attract top talent with a positive employer branding linked to psychological safety.