Psychological Safety - Is It a Part of Your Strategy and Culture?

All companies look for an edge. We develop our own “secret sauce” to differentiate ourselves from the competition. The “sauce” is generally built around superior products and services, but what about people? Are people an essential ingredient of your “secret sauce?” I sure hope so! Savvy executives shatter their competition with empowered, valued employees who enjoy freedom within a psychologically safe environment.

Hold up….a what?! What in the world is psychological safety, and what does it have to do with business success?

Psychological safety is an approach. It’s a cultural atmosphere. It’s a sense of confidence an employee has when they know their voice is valued; their voice is heard.

Amy Edmonson, Professor of Leadership at Harvard Business School, says 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."

At Sera Business Advisors, we’ve seen how embracing and promoting psychological safety in your workplace benefits every corner of your business. When employees feel secure, they’re more likely to speak up, take risks, and embrace the “my career is my responsibility” philosophy. They are committed to excellence, and this kind of involvement drives dedication and results.

Psychologically safe environments produce:

1. Innovation: When employees feel safe, they don’t play it safe. Psychological safety frees them to provide fresh, diverse ideas. If you're hiring authentically, those ideas are already there; you’ve just got to give your team the confidence to say those thoughts out loud.


2. Employee engagement: There’s a clear link between psychological safety and higher employee engagement. When your team feels secure, they’re more motivated to go the extra mile. It helps their individual performance. It helps the team’s performance. Plus, your company’s culture becomes a positive and productive place.


3. Healthy risk-taking: Taking risks is essential for growth, but not all risks are equal. Psychological safety encourages the kind of healthy risk-taking that leads to innovation and improvement. When your team knows they won’t be in trouble for trying something new, they’ll push boundaries and think creatively.


4. Development and growth: Continuous learning is the key to staying relevant. In a psychologically safe environment, employees feel comfortable asking questions, making and admitting mistakes, and receiving and seeking feedback—all of which are crucial for growth and building a resilient team.


5. Improved bottom line: At the end of the day, all these factors enhance profits. Your team sticks around, performs better, and takes responsibility for their careers’ success. In fact, Forbes noted that companies with highly engaged employees are 21% more profitable and show a 17% increase in productivity.

And that’s just good for business.

So, how do you create a psychologically safe culture?

Trust is everything. It’s the foundation that allows psychological safety to thrive. But trust isn’t just something that happens at the top—it needs to exist between every person on the team. As a leader, it’s your job to foster this trust by encouraging open dialogue and holding yourself and others accountable.

• Shift the focus from tasks to learning. Frame work as a chance to learn. Every project and every mistake is an opportunity to grow and improve.


• Ask questions. Show you value your team’s input by staying curious and encouraging open dialogue. Welcome self-reflection and continuous learning.


• Listen actively and promote respect. Show genuine interest in your team’s ideas and give everyone the chance to contribute. Commit to handling tough conversations openly and constructively.


• Own your mistakes and lead by example. When leaders admit their slip-ups, it sets the tone for others to do the same. Be accountable, embrace the idea that your career is your responsibility, and your team will follow suit.


• Invest in training. Equip your team with the right tools and skills through tailored training programs like the ones offered by Sera Business Advisors.

Psychological safety can’t be an afterthought

Psychological safety is the backbone of a strong, innovative team, and therefore, your culture. When your employees feel confident and supported, they bring their best ideas to the table, take smart risks, and drive the business forward. They embrace the “my career is my responsibility” idea.

If they don’t feel secure, they’ll never reach their full potential. They will work with apathy, and often blame others – after a while, your once-amazing “secret sauce” will be ruined. And what kind of strategy is that?

Creating this kind of environment takes intention, trust, and the right guidance. Sera Business Advisors specializes in helping you cultivate a workplace where psychological safety can thrive.

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Sera Business Advisors is a management consulting firm specializing in HR with a business-first approach. Sera fosters growth and strategic development through training programs, an extensive library of proprietary tools, and a deep understanding of business for emerging startups, middle market companies, and publicly traded companies. To learn more, visit seraadvisors.com.