Psychological safety – popularised by Harvard Business School professor Amy Edmondson – has become a widely discussed topic in the business world. While its frequent use may make it seem like just another buzzword, the concept is far from a trend or nice to have. Psychological safety forms the foundation of a workplace culture that’s essential to attracting and retaining employees.

Psychological safety refers to creating a work environment where employees feel secure in expressing their thoughts, concerns, and ideas without fear of punishment or judgment. It allows individuals to challenge norms, share vulnerabilities, and bring their ‘choice self’ to work without worrying about repercussions.

Marginalised groups often face additional challenges in the workplace, such as microaggressions, bias, racism, and systemic barriers to advancement – all of which contribute to reduced psychological safety, making it more challenging to speak up, take risks, or feel a true sense of belonging and inclusion.

Research has widely shown that experiences of “emotional tax” – which is the tax associated with being on guard to protect oneself against bias due to race, ethnicity, and gender – are pervasive in organisations worldwide. Deloitte’s 2024 Women @ Work survey reported that 43% of women experienced microaggressions or harassment in the workplace over the past year. Notably, 40% of women from ethnic minority backgrounds reported such experiences, compared to 30% of women from majority groups. Plus, 54% of LGBTQ+ identifying women reported experiencing microaggressions or harassment, including sexual harassment.

The accumulation of these experiences can lead to employees feeling alienated, contribute to creating hostile work environments and limit an individual’s potential – all of which can have a catastrophic impact on an employee’s career development.

Undoubtedly, organisations committed to building a truly inclusive workplace cannot succeed without psychological safety. Inclusivity is not just about hiring diverse talent – it’s about ensuring that every employee feels valued, respected, and heard. Psychological safety is at the heart of this process.

Research consistently shows that employees who feel psychologically safe are more likely to remain loyal to their employer. One study showed that members of diverse employee groups are much more likely to quit when working in environments with low psychological safety compared to their more advantaged peers.

Whilst an evidence review by the CIPD found that psychologically safe work environments have a clear positive impact on employee attitudes, the review outlined that employees who feel more satisfied with their jobs are more likely to be committed and engaged in their work, and take initiative. They are also more motivated to fulfil their roles, contribute to their team, and remain with the organisation longer.

The fear of isolation and exclusion leads some employees from diverse groups to hide their true selves at work, an emotionally draining experience that inevitably inhibits performance and morale. A lack of psychological safety can lead employees to feel undervalued, unheard, and ultimately seek opportunities elsewhere. With the cost of recruitment rising, retaining talent is critical.

By fostering psychological safety – for example where leaders role-model vulnerability, feedback flows both ways and difference is accepted and not just tolerated – organisations create an environment where diverse voices are not only welcomed but encouraged. This gives individuals the confidence to contribute, challenge the status quo, and advocate for themselves – key markers of talent development.

Giving all employees a safe, inclusive and sensitive environment to speak up helps employers to understand the true, lived experiences of specific populations in the workplace. By gaining an understanding of the barriers certain groups may have in their career advancement and recognising these blockers, is essential to putting the right structures and support systems in place to ensure that the advancement of diverse talent is not just encouraged but actively enabled.

Psychological safety in the workplace is a critical factor in attracting top talent, and can often outweigh other aspects of career considerations, like salary.

A study by the Association of Accounting Technicians (AAT) back in 2014 found that 80% of UK workers would reject a substantial pay increase if it meant working in an unfavourable environment. Whilst a more recent survey by Glassdoor revealed that 57% of UK employees prioritise company culture over salary when it comes to job satisfaction, with 75% considering a company’s culture before applying for a job.

These findings provide context to the notion that fostering psychological safety and developing a positive workplace culture is important for organisations aiming to attract skilled professionals, who take an entire job opportunity and company potential into consideration when accepting or rejecting offers.

The moral and business imperative of psychologically safe and inclusive workplaces – across all levels of an organisation – is widely evidenced and recognised.

Research across multiple sectors and organisations has consistently shown that psychological safety is one of the strongest predictors of team performance, productivity, creativity, and innovation. Google’s Project Aristotle, which examined data from 180 teams totalling 37,000 employees, identified psychological safety as the key factor distinguishing the most successful teams from others.

It’s clear that employers who prioritise building a culture of psychological safety not only experience increased engagement, enhanced collaboration, greater innovation, and a stronger sense of belonging, but also create an environment where all employees – no matter what their background – can thrive.

Ultimately, psychological safety translates to business success – it is the cornerstone of sustainable growth for employees and businesses alike.