As we navigate the rise of AI in the tech industry, it’s impossible to ignore the rapid transformations around us. Advanced machines learning from patterns, streamlining processes, and opening avenues for innovation—this isn’t the stuff of science fiction anymore; it’s our reality.

However, amidst the allure of AI and automation, there’s an essential element we can’t afford to overlook—the human factor. The brilliant minds powering this revolution are what make everything possible. But how can we expect these teams to fully leverage AI, if they’re hesitant to voice concerns, share ideas, or take intellectual risks due to fear of criticism or punishment?

That’s why psychological safety isn’t simply a concept—it’s a crucial underpinning of effective teams in this new AI-dominated landscape. We need to foster an environment where every team member feels safe to take risks, question the status quo, and, yes, occasionally fail. Because that’s where real, groundbreaking innovation lives.

Understanding Psychological Safety

So, what is psychological safety? At its core, it’s about creating an environment where individuals feel comfortable being themselves. They’re confident in expressing their ideas, asking questions, making mistakes, and learning from them without fear of embarrassment, rejection, or retaliation.

Harvard Business School professor Amy Edmondson pioneered the concept and described psychological safety as “a sense of confidence that the team will not embarrass, reject, or punish someone for speaking up.” It’s the bedrock upon which successful teams are built, fostering innovation, trust, and mutual respect.

The Importance of Psychological Safety

Beyond the empathetic reasons, psychological safety holds immense practical significance. Google’s two-year research project, “Project Aristotle,” aimed to uncover the secrets behind effective teams. The surprising revelation? Psychological safety was identified as the most critical factor determining a team’s success. It wasn’t about who was on the team but how they worked together.

Psychologically safe environments encourage open dialogue, facilitate shared learning, and drive innovation. They reduce the fear of failure, enabling employees to take calculated risks – a cornerstone of creativity and problem-solving.

Why Ignoring Psychological Safety is a Risky Business

A lack of psychological safety can have severe consequences for teams and organizations. I have seen what happens within teams when leaders do not buy in or fully understand the value of creating safe spaces for our teams. Here are some examples:

1. Inequity and Discrimination: Without psychological safety, marginalized groups may feel unsafe or uncomfortable expressing their identities or experiences. This can perpetuate existing inequities and discrimination within the organization, and I experienced this for years before I found my voice as a female, queer Latina in the tech space.
2. Lower Financial Performance: Ultimately, all these factors can have a direct impact on an organization’s bottom line. Companies with poor psychological safety may experience lower profitability due to reduced productivity, high turnover, reputational damage, and poor customer satisfaction.
3. Increased Employee Turnover: If employees don’t feel safe expressing their thoughts or fears, they are more likely to become disengaged and consider leaving the organization. High turnover rates are costly in terms of recruitment, onboarding, and lost productivity.
4. Stifled Learning and Growth: A lack of psychological safety can create an environment where people are less likely to learn from their mistakes or take on challenging tasks for fear of failure. This stifling environment can impede personal growth and the organization’s capacity to adapt and evolve.
5. Decreased Customer Satisfaction: Employees who feel undervalued or stressed can unintentionally pass these feelings onto customers through poor service, which can harm the company’s reputation and customer relationships.

Leaders who prioritize this aspect of organizational culture can prevent these negative outcomes and build a healthier, more productive work environment.

Cultivating Psychological Safety: Where to Start

Creating psychological safety isn’t an overnight transformation; it’s an ongoing commitment. Here’s how you can start:

1. Foster Open Communication: Encourage team members to express their opinions and concerns. As a leader, set the tone by being open about your own vulnerabilities and uncertainties. This approach creates an environment where learning and growth are celebrated over perfection and let’s be honest perfection does not exist plus the pressure it puts on individuals can also hinder growth and productivity because of fear.

2. Encourage Learning from Failure: Normalize the fact that mistakes happen. Instead of attributing failures to individuals, frame them as opportunities for team learning. When people feel safe about admitting and learning from their mistakes, it leads to continuous improvement and innovation.

3. Show Empathy: Practice empathy in your interactions. Acknowledge your team members’ feelings and show understanding. This emotional connection fosters trust and mutual respect, creating a safe space for everyone. I intentionally demonstrate how I’ve learned some of the mistakes I’ve made in my journey over the years.

4. Practice Active Listening: Active listening is about more than just hearing – it’s about understanding and validating others’ perspectives. It’s about asking open-ended questions and giving thoughtful responses, demonstrating that you truly value their input. As leaders, we need to stop assuming that our teams understand when we want their input, we need to request it clearly.

5. Build a Culture of Inclusion: Foster an environment where all voices are heard and valued. Encourage diversity of thought and experiences, creating a culture where everyone feels they belong.

And listen, sometimes, the most impactful step is simply to listen – without the intent to respond or solve immediately (this is a lesson I wished I learned earlier in my career). There’s immense power in just holding space for someone, letting them know they’re heard and valued. As leaders, we often feel compelled to act, to fix – but it’s crucial to understand that not all problems need instant solutions.

Remember, every action you take toward creating a psychologically safe environment is a step forward in developing more engaged, resilient, and innovative teams. As leaders, we have the opportunity and responsibility to cultivate workplaces where every team member feels secure, valued, and heard. Our people deserve nothing less.