5 ways leaders can improve psychological safety at their organisations

29 January 2025 Consultancy.uk

Fostering a culture of innovation requires more than just creative ideas – it demands an environment where employees feel psychologically safe to take risks, challenge the status quo, and share their unique perspectives. New research from Skarbek has spelled out five ways in which leaders can boost their psychological safety for staff.

In an age of constant change, where agility and adaptability must be the norm, risk-taking is essential to successfully do business. But if employees are reprimanded or belittled for taking those risks, they will not feel safe and secure when expressing their thoughts and ideas – and this can either lead to their ill-health, or to an organisation stagnating in silence.

“Psychological safety, defined as the shared belief that the team is safe for interpersonal risk-taking, is the foundation upon which high-performing, innovative teams are built”, explains Paul Dove, a principal consultant at Skarbek.

5 ways leaders can improve psychological safety at their organisations

Exploring the concept in a research article published on the consultancy’s website, Dove notes that when employees feel they are in a safe environment, they are “more likely to engage in constructive debates, experimentation, and learning that fuel innovation”. In turn, this makes employees “more invested in the organisation’s success”, giving them a sense of ownership and empowerment which “drives their motivation to contribute to innovative solutions”.

But like any transformation, implementing psychological safety measures in a workplace from scratch takes time, patience and leadership. To help organisations get the ball rolling, Dove and Skarbek have outlined five key ways leaders can drive the necessary cultural change to boost psychological safety in their organisation.

1. Set the tone

Leaders need to promote and model experimentation on an active basis. Old cultural practices die hard, and employees will need guidance in adapting to a new mode of operation – as well as clear evidence that they can trust the organisation really isn’t going to punish them for risk-taking.

“By embracing a learning mindset and demonstrating a willingness to test new ideas,” the researchers note, “leaders signal that experimentation is valued throughout the organisation.”

2. Create psychological safety

“Leaders need to create an environment where employees feel safe to take risks and share ideas without fear of punishment,” the researchers continue.

This involves three key components. Leaders should encourage open communication; re-frame ‘failure’ in their messaging as ‘learning opportunities’ instead; and recognise efforts to experiment among their staff, whatever the outcomes.

3. Offer support and resources

Enabling experimentation is about more than verbal praise, though. Leaders will need to put their money where their mouth is on occasion – allocating dedicated time and resources to test new ideas.

The researchers also suggest, “Leaders must implement tools and process to facilitate experimentation. [And] offer training on experimental methods and data analysis.”

4. Balance freedom and discipline

Freedom must still come with some responsibility. Leaders must be clear that while they are providing a safe environment to experiment, staff must not abuse this, and will still need to meet certain expectations.

The researchers state in particular that they will need to meet “rigorous processes for designing and conducting experiments” to help create repeatable results. And they will be subject to “ethical guidelines for experimentation practices” as otherwise risk-taking may impact the reputation and sustainability of an organisation.

5. Drive cultural transformation

Finally, leaders will need to work to ensure that psychological safety, and an environment for experimentation, can sustain themselves in the long run. This includes training staff, both individually and as teams, to nurture the new culture.

Beyond this, Skarbek’s experts add, “[Leaders can also] redefine success metrics to value learning and iteration, aligning incentives and rewards with experimentation goals. [And] foster cross-functional collaboration to support experiments.”

Dove concludes, “Psychological safety is not just a buzzword – it is the foundation upon which innovative cultures are built. By fostering a psychologically safe environment, organisations can unlock the creativity, collaboration, and risk-taking that are essential for driving breakthrough ideas and staying ahead of the competition. This in turn will result in great business success and growth.”

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