Understanding Psychological Safety: Why It Matters and How to Create It

Written by Coursera Staff • Updated on

Psychological safety is part of any successful organization’s workplace culture. Learn why you should prioritize psychological safety in the workplace by understanding what it is, why it’s important, and what it looks like.

[Featured Image] A group of professionals in a workplace environment engaging in stretching exercises, promoting psychological safety and well-being in the office.

Key takeaways

Psychological safety is a shared belief that allows you to discuss ideas and concerns and ask questions at work without fear of negative consequences.

  • According to Workplace Options, 93 percent of organizational leaders report that a psychologically safe workplace increases productivity and innovation [1].

  • The four stages of psychological safety are inclusion safety, learner safety, contributor safety, and challenger safety.

  • You can create a psychologically safe environment in the workplace by seeking feedback, showing gratitude to your teammates, and creating spaces open to collaboration.

Learn more about psychological safety, including what it is and why it’s important. If you’re ready to build leadership skills, consider enrolling in the University of Michigan’s Leading People and Teams Specialization. You’ll have the opportunity to develop your vision as a leader and learn how to manage talent to improve employee performance. Upon completion, in as little as four weeks, you’ll have earned a career certificate for your resume.

What is psychological safety in the workplace?

Psychological safety, sometimes called team psychological safety, describes the shared belief that it’s okay to openly express ideas, discuss concerns, ask questions, and take risks without worry of reprisal or negative consequences. This phenomenon allows you (or your team members) to make mistakes and learn without feeling like you must hide from negative consequences or sugarcoat bad news. 

This builds a foundation of trust and mutual respect within your team, which empowers each member to contribute their insights and collaborate across disciplines and perspectives effectively. When you create an environment that fosters this interaction, groups can expand their abilities to innovate, solve problems, and adapt to change.

Psychological safety examples: What does psychological safety at work look like?

A psychologically safe team should feel comfortable engaging with each other openly, sharing perspectives, and asking questions. For example, in a psychologically safe team environment, your teammate might openly share a bold new idea or acknowledge a mishap on their end, knowing teammates will receive their input with compassion and curiosity rather than criticism and judgment. 

Team members will also typically provide both positive and negative feedback, with specifics beyond “everything is going well.” This includes giving feedback to team members and colleagues more senior than yourself. In a psychologically safe environment, employees should feel comfortable voicing their opinions (respectfully and politely) without fear of being blamed or shut down, even when communicating with managers or leadership. 

What causes a lack of psychological safety?

An organization can have diminished psychological safety if it values some employees’ opinions more than others, adheres to an authoritarian leadership style that doesn’t allow for collaboration, or has strong personalities that overpower other employees. Companies that look to blame an employee for a mistake rather than identifying systemic issues that may have led to it may also have low psychological safety.

Why is psychological safety in the workplace important?

Psychological safety benefits individuals and the collective by enhancing collaboration, driving innovation, and improving productivity across organizations. Employees who share their perspectives without worrying about the potential for negative consequences are more engaged, motivated, and empowered to contribute their best. 

Investing in psychological safety has been shown to drive long-term organizational success. According to Workplace Options, 93 percent of organizational leaders report that a psychologically safe workplace increases productivity and innovation, with more than one-third expecting returns of over 20 percent from investments in psychological well-being [1]. By cultivating psychological safety within your team, you can create an environment where individuals feel empowered to contribute meaningfully, fueling sustained success and growth within your organization. Some ways in which psychological safety transforms the workplace include:

Improved employee retention.

Employees often stay longer when you build a culture rooted in psychological safety. In fact, employees committed to staying with their organization are 1.7 times more likely to report high levels of psychological safety [2]. This highlights how fostering psychological safety can reduce turnover, which is associated with increased employee loyalty, decreased hiring costs, and a more sustainable, highly skilled workforce. 

Increased diversity in your workforce.

The effects of psychological safety within the workplace tend to be most pronounced in diverse and disadvantaged employee groups. According to the American Psychological Association, employees with higher psychological safety were also more likely to report satisfaction with their organization’s policies for fostering diversity, equity, and inclusion [3].

Psychological safety helps create an inclusive work environment, which in turn helps attract and maintain a diverse workforce. This reduces disparities within the workplace and strengthens the organizational ability to leverage diverse perspectives and experiences.

Enhanced performance. 

Psychological safety enables teams to tap into the full potential of their members, particularly those from diverse backgrounds. This diversity leads to more creative problem-solving, better decision-making, and exploration of new opportunities outside the status quo. 

Stages of psychological safety

Generally, psychological safety within the workplace progresses in four stages: inclusion, learner, contributor, and challenger. Building psychological safety can be gradual, so don’t be discouraged if it takes time. 

1. Inclusion safety

This is the foundational element of psychological safety. To meet this, you must feel that your teammates and leadership value and accept your contributions, regardless of your background or position.

2. Learner safety

If you have learner safety, you will feel comfortable exploring new areas, asking questions, and making mistakes. Leadership within the organization should encourage the learning process, including building an understanding that learning is not always linear, and it is okay for employees to grow at their own pace.

3. Contributor safety

The next stage of psychological safety is the contributor stage. In this stage, you’ll feel comfortable speaking up in group settings and sharing your insights without worrying about rejection or dismissal.

4. Challenger safety

When challenger safety is met, you can share conflicting viewpoints with teammates or organizational leaders without fear or anxiety. In this environment, you can help to enact positive change, shaping team dynamics and organizational culture.

Read more: What Is Organizational Leadership? Styles, Skills, and Careers

The 4 dimensions of psychological safety

While psychological safety isn’t one-size-fits-all, you can generally quantify it by four common dimensions. These principles act as a framework for creating a positive company culture that helps workers feel valued. The four dimensions include:

  • Willingness to help: You feel encouraged to ask for and provide help.

  • Inclusion and diversity: The organization values diverse experiences and perspectives.

  • Attitude to risk and failure: You and others view mistakes as a learning experience.

  • Open conversation: Conversations are open and honest and invite participation.

While these dimensions help to guide what a psychologically safe workplace looks like, you and your team can create this type of environment in whichever way works for your specific dynamics and environment. Encourage open communication for how each team member would like to approach collaboration and connections within the workplace. 

Steps to create psychological safety 

As a leader, creating psychological safety starts by turning inward. Acknowledging and understanding your own emotions and behaviors in the workplace allows you to lead with authenticity and empathy. 

By demonstrating vulnerability and staying aware of the dynamics within the organization, you can set a tone of openness and trust. Showing compassion to your employees by understanding their experiences and addressing their needs helps to create an environment where your team feels genuinely cared for and valued. To do this effectively, consider the following tips:

  • Normalize saying “I don’t know” and sharing when you make mistakes.

  • Discuss failures and what you all learned as a team.

  • Be genuine when asking someone to share their perspective.

  • Thank people for sharing their opinions.

  • Openly seek feedback.

  • Avoid defensiveness when responding to feedback.

  • Review your delivery of sensitive topics with a third party before communicating them.

  • Show gratitude openly to your teammates.

  • Create spaces where you can informally connect and develop relationships.

 

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Article sources

1

Workplace Options. “93% of Business Leaders Worldwide Believe Psychological Safety Boosts Bottom Line, Yet Gaps Persist in Addressing Psychosocial Risks, https://www.workplaceoptions.com/news/93-of-business-leaders-worldwide-believe-psychological-safety-boosts-bottom-line-yet-gaps-persist-in-addressing-psychosocial-risks/.” Accessed June 6, 2026.

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