How Psychological Safety Reduces Workplace Risks

Sacha Thompson (she/her)
4 min readJun 17, 2024

Since starting The Equity Equation, we have focused on building inclusive workplaces centered on psychological safety. This was important to me because I knew the personal impacts of not being in psychologically safe spaces impacted my mental, physical, and spiritual health. Creating a psychologically safe workplace enhances employee engagement, productivity, and overall well-being. It also plays a vital role in mitigating risks such as high turnover, poor mental health, and diminished innovation.

Benefits of Psychological Safety

Emphasizing psychological safety in the workplace offers numerous benefits, including:

  • Enhanced Employee Engagement and Productivity: Employees are more motivated and productive when they feel safe and supported.
  • Reduced Turnover: A psychologically safe environment increases job satisfaction and loyalty, reducing turnover rates.
  • Improved Mental Health and Well-being: Supporting psychological safety helps mitigate stress and anxiety, promoting overall well-being.
  • Increased Innovation and Collaboration: When employees feel safe sharing ideas and challenging the status quo, a culture of innovation and collaboration is cultivated.

Let’s explore the four stages of psychological safety and how they contribute to a thriving organizational culture, along with insights into the recently introduced Workplace Psychological Safety Act.

The 4 Stages of Psychological Safety

Stage 1: Inclusion Safety

Inclusion Safety is the foundation of psychological safety. It ensures that everyone feels accepted and included in the workplace. When employees feel safe to be themselves without fear of exclusion or marginalization, they are more likely to engage fully and contribute to their teams.

Key Actions:

  • Foster a culture of respect and appreciation for diversity.
  • Implement policies that promote inclusivity and prevent discrimination.
  • Encourage leaders to model inclusive behavior and actively seek input from all team members.

Stage 2: Learner Safety

Learner Safety allows employees to feel safe learning, asking questions, and making mistakes. It is crucial for fostering a growth mindset and continuous improvement. In an environment where learning is encouraged, employees can develop new skills and innovate without fear of criticism.

Key Actions:

  • Provide training and development opportunities that encourage learning.
  • Create a supportive environment where mistakes are seen as learning opportunities.
  • Encourage curiosity and the sharing of knowledge within the team.

Stage 3: Contributor Safety

Contributor Safety ensures that employees feel safe to contribute their ideas and opinions. When employees are confident that their contributions are valued and respected, they are more likely to participate actively and take ownership of their work.

Key Actions:

  • Encourage open communication and active listening during meetings.
  • Recognize and celebrate contributions from all team members.
  • Provide opportunities for employees to lead projects and initiatives.

Stage 4: Challenger Safety

Challenger Safety allows employees to feel safe, challenge the status quo, and propose new ideas. This stage is essential for driving innovation and preventing complacency. The organization can continuously evolve and improve when employees can voice their concerns and suggest improvements without fear of retaliation.

Key Actions:

  • Foster a culture of constructive feedback and debate.
  • Encourage employees to speak up about potential issues or inefficiencies.
  • Support leaders in creating an environment where challenging ideas are seen as a positive and necessary part of growth.

The Workplace Psychological Safety Act

The Workplace Psychological Safety Act is a legislative effort to protect employees’ mental health and well-being by ensuring psychological safety in the workplace. The Act emphasizes the importance of creating a supportive and inclusive work environment where employees can thrive. It shifts the responsibility of creating psychologically safe work environments to the employer rather than just to the employee.

Key Provisions:

  • Mandatory Training: Requires organizations to provide training on psychological safety and mental health awareness.
  • Reporting Mechanisms: Establishes clear channels for employees to report issues related to psychological safety without fear of retaliation.
  • Regular Assessments: Regular assessments of workplace culture and psychological safety are mandated to identify and address areas for improvement.
  • Support Services: Ensures all employees have access to mental health support services.

Conclusion

Creating a psychologically safe workplace fosters a healthy, productive, and innovative organizational culture. By understanding and implementing the four stages of psychological safety — Inclusion Safety, Learner Safety, Contributor Safety, and Challenger Safety — HR leaders can mitigate risks and drive positive outcomes. The Workplace Psychological Safety Act further underscores the importance of this effort, providing a framework for organizations to ensure the well-being of their employees.

At the Equity Equation, we have always focused our efforts on building more inclusive workplaces centered on psychological safety for everyone in the organization. This includes leadership coaching and support as well as team facilitation.

Call to Action: How psychologically safe is your organization? You can’t change what you can’t measure! Learn more about our Psychological Safety assessments and more — https://offerings.theequityequationllc.com/PsychSafety

Sacha Thompson is the founder of The Equity Equation, LLC, a boutique diversity coaching and inclusive culture consulting firm, and Equity Leadership Institute, a leadership coach training company. With 20+ years of experience within the education, non-profit, and tech industries, Sacha’s work is about removing barriers or providing support to achieve equality. She helps executives and leaders have that meaningful dialogue and coaches them on the necessary, long-term changes that develop institutional cultures of inclusion. She was most recently featured in Newsweek, Business Insider, and MSNBC’s The Cross Connection.

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Sacha Thompson (she/her)
Sacha Thompson (she/her)

Written by Sacha Thompson (she/her)

Inclusive Culture Curator| Psychological Safety at Work | Host of DEI After 5 |Featured in the NY Times, Forbes, Business Insider | Seen on MSNBC & Fox Soul

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