2023 has brought on a lot of challenges for businesses. Leaders are faced with a looming recession, rising costs, and subsequent layoffs. With these challenges, come longer working hours, and a stressful environment for both staff and leaders.
It’s easy for leaders to neglect the health and well-being of employees during challenging times. If you are a business leader, you may be wondering if wellness or psychological programs are even worth the costs right now. However,
psychological safety has been shown to have a significant impact on business performance.
Leaving your employees to work in a ‘threat state’ where fear and stress take center stage can lead to even more costs for your businesses down the line. After all, it’s difficult to thrive in a business that limits your growth and promotes fear of individuality and expression. As Richard Branson once stated “Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.” Find out more about the impact of psychological safety below.
Employees perform best when they work in a good working environment that encourages them to engage without judgment, fosters good relationships, and minimise stress overload. This has been proven by studies that have found that companies with a
climate of psychological safety achieve higher returns and overall better financial results throughout the year.
A psychologically safe team is characterised by an environment where individuals feel comfortable expressing their opinions, concerns, and ideas without fear of negative consequences. Teams with high psychological safety foster open communication, collaboration, and a sense of belonging among team members. This, in turn, can lead to increased innovation, improved decision-making, and better problem-solving.
High psychological safety has a significant impact on business performance in several ways:
To foster a climate centred on psychological safety, it’s important to invest in building the right habits for challenging business environments. This includes creating an environment of trust, where team members are encouraged to share their thoughts and ideas openly. It also involves fostering a culture of
learning and growth, where mistakes are viewed as opportunities to learn and improve.
Here are some steps you can take toward promoting psychological safety in the workplace to improve business performance:
High psychological safety has a positive impact on business performance by fostering open communication, collaboration, innovation, employee engagement, team performance, and ultimately, organisational success. Don’t fail to focus on the psychological needs and well-being of your staff first as it will boost your business performance down the line.
Want to
assess the level of psychological safety in your team?
Contact us to set up a consultation or try the
Fearless Organisation Scan to assess the level of psychological safety in your company.