Is lack of psychologically safety holding you and your team back?

Author

Kate Woodward

Client Success Director

3 minute read

6 Mar 2025

How safe do you feel speaking up, admitting mistakes, taking risks? 

How safe do you imagine your team feel? 

A leader’s ability to create psychological safety directly impacts their team’s success. In 2012 Google set out to discover what separates good teams from great ones. Project Aristotle, a 5 year study of nearly 200 teams found that the secret wasn’t who was on the team, it was about how they worked together. The number one success factor?  Psychological safety. 

What is psychological safety? 

Psychological safety is an environment where individuals feel safe to voice opinions, ask questions, admit mistakes, disagree, and take risks without fear of humiliation, punishment or retaliation. It’s the foundation for 

  • Better decision-making – When diverse perspectives are welcomed, teams make more informed choices

  • Stronger team dynamics – A culture of trust allows people to collaborate openly and effectively

  • Greater innovation & problem-solving – Inclusive environments encourage creativity

  • Higher engagement & retention – People stay and thrive when they feel heard, valued, and included

Yet, a recent McKinsey study found that only 26% of leaders are creating psychologically safe environments for their teams. If that’s true, imagine the cost – missed ideas, lost productivity and untapped potential. 

Psychological safety: The Cost of Getting it Wrong

We’ve all been in situations where we hesitate to ask a clarifying question, disagree with a decision, or admit we are unsure about something, for fear of creating conflict, looking incompetent or slowing things down. Across organisation, these everyday occurrences are costing people and organisations dearly

  • Wasted potential – People don’t bring their best ideas to the table

  • Stifled innovation – Fear of failure prevents risk-taking & less creativity 

  • High turnover – People leave environments where they don’t feel valued

  • Low engagement – Motivation drops when employees feel unheard

  • Siloed teams – Lack of openness leads to duplication and inefficiency

  • Stagnation – A fear-driven culture resists change and growth

  • Lost Learning Opportunities  – People miss out on growing from mistakes 

As organisations face rising costs, hybrid work challenges, and the war for talent, building psychological safety is a competitive advantage, especially for diverse teams.  Here’s how to get started:

How to Create Psychological Safety in Your Team

  • Recognise everyone is unique – each member of your team has different life experiences, values and beliefs that shape how they perceive safety 

  • Lead by example – Be open about your own mistakes, uncertainties, and learning moments.

  • Reward constructive conflict/challenge – actively invite questions and encourage debate

  • Create space for all voices – Make sure every team member is heard, not just the most vocal ones.

  • Respond, don’t react – When someone speaks up, listen with interest rather than defensiveness.

  • Give and ask for feedback – psychological safety is not about being ‘nice’ – encourage constructive feedback both up and down the organisation.

  • Recognise and reward vulnerability – Publicly appreciate those who take risks, share new ideas, or admit when they need help.

  • Address conscious & sub-conscious bias and micro-aggressions – foster an environment where everyone feels a strong sense of belonging & inclusion 

Ready to Build a Transformational Culture?

Creating psychological safety isn’t just a ‘nice to have’ – it’s a game-changer 

When people feel psychologically safe, they bring their whole selves to work, 

Thomas Edison reminds us, ‘If we did all the things we are capable of,  we would literally astound ourselves” 

At Full Potential Group, we help leaders and teams build the confidence, trust, and behaviours that create thriving, high-performing, and inclusive cultures.

How could you take one step today towards a more psychologically safe workplace?

 

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