In the workplace, psychological safety, explored in a January 4 report by Boston Consulting Group, acts as a potent catalyst for motivation, happiness, and retention. It hinges on creating an environment where individuals feel free to express opinions and take risks without fear of blame or criticism. The report unveils a correlation: among those reporting low psychological safety, 12% considered leaving within a year, while for those with high levels, the attrition risk dropped to 3%.
At its core is empathetic leadership—a dance of understanding and respect for team members’ perspectives. While collective buy-in is crucial, leaders play a pivotal role, in setting the tone and delineating rewarded behaviours. Nadjia Yousif, Chief Diversity Officer at BCG, emphasizes leaders as role models.
Surveying 28,000 professionals across 16 countries, the report reveals that those in a psychologically safe environment feel 2.1 times more motivated, 2.7 times happier, and 3.3 times more enabled at work. This effect is pronounced among diverse groups—women, people of colour, LGBTQ+ employees, those with disabilities, and economically disadvantaged individuals. For them, psychological safety translates to retention increases ranging from four to six times.
In environments with low psychological safety, attrition rates soar for diverse groups. In the bottom 30%, 18% of LGBTQ+ employees face attrition risks, compared to 12% of their straight counterparts. In the top 30%, the gap narrows to a 3% attrition risk for all.
The BCG report suggests fostering psychological safety through leaders allocating time for human connections in meetings, encouraging sharing and learning. Regular team reflections, constructive feedback focusing on work, and leaders sharing mistakes and lessons round off the recommendations.
The absence of psychological safety leads to lower engagement and belonging, increasing turnover, especially among managerial roles held by people of colour. Building psychological safety involves preventing harm, promoting health, and resolving incidents responsibly, as per a McLean & Co. report.
Empowering employees to speak up year-round, not just during reviews, is crucial. A safe environment fosters openness, providing leaders with insights into their team’s strengths, weaknesses, and aspirations. In this dance, psychological safety emerges not just as a concept but as a transformative force shaping workplace well-being.
