Why Psychological Safety Is the Hidden Key to Better Team
Creating a psychologically safe working environment empowers teams to embrace change, innovate boldly, and collaborate effectively – driving measurable growth, resilience, and long-term performance.
I attended The Watercooler Event last week, and one of the most insightful sessions was a case study chaired by Carol Speirs of the International Stress Management Association (ISMA), focused on building a thriving workplace through psychological safety and employee wellbeing. The session featured Carol Smets, Head of Corporate Sustainability at Pernod Ricard.
The discussion highlighted how a healthy workplace goes beyond physical safety—it must also support the psychological and emotional wellbeing of employees. When organisations prioritise psychological safety, people feel safe to speak up, contribute, and be themselves without fear of judgment or repercussions.
This sense of security directly impacts mental health, productivity, and attendance, and it’s a crucial foundation for high-performing, resilient teams.
We often talk about innovation, performance, and employee retention as separate goals. But there’s one powerful foundation that ties them all together: psychological safety.
Psychological safety means that people feel safe to speak up; whether that’s offering a new idea, flagging a concern, or admitting a mistake, without fear of being blamed, embarrassed, or shut down. It’s not about being “nice” all the time; it’s about creating an environment where people can be honest, bold, and fully engaged.
Why It Matters
Studies show that psychological safety isn’t just a “soft” cultural value; it directly drives hard business outcomes – a tangible Carol Smets shared at Pernod Ricard to get the C-suite on board. She talked about training and supporting management to actively listen, not judge, accept and act as part of their workflow rather than a tick box exercise.
Google’s famous Project Aristotle found that psychological safety was the number one factor behind their highest-performing teams. It mattered more than talent, experience, or technical skills. When people feel safe, they take more initiative, collaborate more freely, and solve problems faster.
Harvard professor Amy Edmondson, who coined the term, showed that psychologically safe teams report more mistakes, not because they’re making more, but because they feel comfortable acknowledging them. And that’s exactly how organisations learn and improve.
The Business Case: Backed by Data
- Google: Teams with high psychological safety had higher retention, more innovation, and better outcomes.
- McKinsey: Teams that felt psychologically safe were 5x more likely to be high-performing and 3x more likely to retain their top talent.
- Gallup: Employees who feel safe speaking up are 3.5x more likely to be committed to quality and 2.7x more likely to be engaged.
It’s also worth noting that diverse teams – across gender, race, background, or generation – rely on psychological safety even more. Without it, differences can become barriers instead of strengths. People need to feel able to bring their whole person to work.
What It Looks Like in Practice
In a psychologically safe workplace:
- People admit mistakes and ask questions without fear.
- Meetings are active and inclusive, not dominated by one voice.
- Leaders are open about what they don’t know.
- Feedback flows in all directions.
- Problems are raised early, before they snowball.
Conversely, in teams where safety is low, people stay quiet, play it safe, and disengage. That’s when creativity dies, accountability drops, and talent quietly walks out the door.
Building It Starts with Leadership
This isn’t about adding more processes – it’s about how people lead, listen, and respond. Leaders set the tone by:
- Showing vulnerability (e.g., “I might be wrong, what do you think?”)
- Rewarding honesty and curiosity.
- Making space for every voice at the table.
Simple practices like check-ins, open-ended questions, and creating clear team norms can go a long way.
A Small Shift with Big Impact
Psychological safety isn’t a luxury – it’s a necessity for any team that wants to perform, adapt, and retain great people. And while it doesn’t happen overnight, it’s something we can build into our workflow – deliberately, consistently, and with care.
If your team is navigating change, growth, or just looking to work better together, this is one area that delivers real returns.
Thanks to The Watercooler Event for such an informative session. I’m already looking forward to seeing what the 2026 agenda brings. If you want to find out more about the event, visit: https://watercoolerevent.com
About Jackson Barnes Recruitment
Jackson Barnes Recruitment delivers international recruitment solutions within the events, media, and publishing sectors. Jackson Barnes recruits Graduate to MD level in the following positions:
• Sales – delegate, sponsorship & Business Development
• Editor
We recruit for organisations in the UK and overseas, with success in London, Dubai, New York, Singapore and Australia.