Psychological Safety and Workplace Culture

Why leaders need to start going above well-being to provide new levels of safety and mental health support at work.

The business landscape has undergone significant changes in recent years, requiring organisations to adapt and transform. Businesses that don’t stay ahead of the changing landscape risk severe repercussions and challenges in maintaining outcomes. Within this context, organisational culture has become a topical issue. Businesses must respond to the challenge of creating a psychologically safe workplace that is constructive and engaging. Psychological safety refers to an individual’s perception of the consequences of taking interpersonal risks in the workplace. When employees feel psychologically safe, they are more likely to speak up, share their ideas, and take risks without fear of negative consequences. This sense of safety fosters open communication, collaboration, and innovation within teams and organisations.

If organisations don’t focus on culture and ensure it is psychologically safe, they will experience higher than normal levels of business dysfunction, such as increased labour turnover, high levels of absence, and increased claims of bullying and harassment, and they will also run the risk of ending up on the front page of the newspaper. CBI and Amnesty International recently hit the news due to ‘toxic workplace’ cultures. It will take years for these organisations to mend the damage created by not adapting to the new normal. Recently, we also watched the Head of Spain’s Soccer Federation try to stand against the tide of media and public opinion over an unwanted and public display of affection. As the leader of a high-profile organisation, Luis Rubiales failed to shift his behaviours to align with the requirements of the modern leadership context.

A psychologically safe workplace culture is now a crucial aspect of an organisation’s operation, without which the ability to attract and retain top talent will be severely hampered.
Leaders play a crucial role in creating and maintaining psychological safety in the workplace. While focusing on employee well-being is essential for creating a healthy work environment, going above and beyond to provide new levels of safety, especially on a mental level, is equally crucial. Organisations and their leaders need to put way more effort into well-being, mental health and safety in the modern business context as the world of work has shifted. There are several key drivers of this change: 

• A significant shift in the generational balance has occurred in the last few years. Millennials are now the dominant generation in the workplace. Gen Zs are also on the rise. They are about 5% and will be 30% of the workforce by 2030. This shift is precipitating a significant change in the world of work. Neither Millennials nor Gen Zs are tolerant of unhealthy workplace cultures, and they are far more likely to demonstrate their lack of tolerance by simply going and finding another job than by waiting around for things to change. 
• Gen Zs are digital natives who have grown up with technology and social media. They exhibit a natural proficiency in using digital devices, applications, and online platforms. They adeptly use technology for communication, collaboration, and problem-solving, having been exposed to digital tools from an early age. Leveraging this attribute of the Gen Zs is essential for organisations as they navigate the changing landscape of artificial intelligence, technological advancement and social media. Organisations must focus on building great workplace cultures if they will attract and retain Gen Zs.
• Younger generations are seeking purposeful work and will actively assess organisations based on their vision, values, and culture before joining. Organisations will have to not only articulate their vision, values and culture, but they will also have to ensure this is authentically lived in the organisation.
• Younger generations are less tolerant of and will challenge inauthentic leadership. Leaders must authentically ‘walk the talk’ and actively focus on well-being and mental health to ensure they are building a psychologically safe workplace culture.
• During the ‘great resignation’ research showed that people are ten times more likely to leave their organisation due to poor culture than pay (Sull, Sull & Zweig 2022). Businesses that do not systemically build and maintain a healthy workplace culture will have significant issues with retention moving forward.
• Mental health and well-being have become a high-priority issue demanding businesses respond to. Global research (Dimensions International’s Global Leadership, 2021) reveals that in the context of COVID-19, nearly 60% of leaders reported burnout. Research also shows that 44% of employees have experienced daily stress (Gallup 2022). The NHS  (The Guardian, 2022) is projecting that 10 million people will need new or additional support for mental health over the next three to five years.

In conclusion, delivering a psychologically safe workplace and ensuring that well-being and mental health are a daily focus is imperative for organisations that want to thrive in the modern business context. Leaders must up their game and focus on workplace well-being and mental health daily, as well as building a positive and engaging culture.

Dr Lynda Folan is an Organisational Psychologist, renowned Leadership and Organisational Development specialist, and author of ‘Leader Resilience, The New Frontier of Leadership (2021)’.  Lynda has considerable expertise in leading organisations through transformational change and works with organisations across the globe to deliver Leadership Development, Organisational Development, Cultural Transformation and Resilience. As the Managing Director of Inspired Development Solutions, Lynda leads a team that provides leading-edge and bespoke solutions for businesses across the globe.

Website: https://www.inspireddevelopment.net/

By Dr Lynda Folan, workplace psychologist and Managing Director at Inspired Development