Creating psychologically safe workplaces is powerful tool for driving business success

Research continues to show that happier, healthier employees make more productive and engaged team members.

A recent Business Insider article revealed that employee ‘disengagement’ or ‘detachment’ could cost more than $8 trillion globally, and employees who are not engaged cost their companies the equivalent of 18% of their annual salary. According to the same research, millennials and Gen Zers are seeing the biggest drop in engagement levels globally. Millennials have dropped seven points, from 39% to 32% being actively engaged, while actively engaged Gen Zers have dropped from 40% to 35%.

A key part of fostering positive working environments that are conducive to factors such as job satisfaction, engagement and high performance is psychological safety. When leaders align with these objectives and realise the pivotal role they play in creating safe spaces, the benefits for both individuals and organisations can be overwhelmingly positive.

Supporting women in the workplace

The agenda to drive diversity and inclusion within the workplace has amplified in recent years, with advocates calling for employers to meet the specific needs of female employees. With their unique perspectives and experiences, women have immense potential to take unique approaches on how to better contribute to the growth and transformation of sectors such as healthcare.

Constructive and consistent action is essential to building a team that is truly diverse and inclusive and one of the key building blocks of these kinds of working environments is psychological safety.

This is the opinion of Humsha Ramgobin, Group Chief Human Resources Officer at Mediclinic, who defines psychologically safe working environments as being spaces in which employees feel free to speak up, share their ideas, ask questions and provide feedback without fear of retribution. “These factors are in turn, some of the most important pillars of inclusive workplaces in which everyone’s voice is heard and regarded equally, and people feel confident enough to share who they are without fear of judgement or discrimination.”

She goes on to say, “The differences between employees are not a weakness. In fact, the exact opposite is true. By creating a culture that brings together a collective of varied opinions and insights, we can unlock better solutions to the problems we’re trying to solve as a business. This was a key motivator for the establishment of Mediclinic’s Women Advancement Network (WAN), an Employee Resource Group aimed at providing women employees with training and development opportunities, knowledge and skills transfer, as well as open forums for discussion.”

Safer teams are better teams

When employees feel psychologically safe, they naturally become more trusting of their colleagues, which in turn, translates into strong, more cohesive teams. Ultimately, driven by a greater level of willingness to share and participate, employees will feel more inclined to collaborate and communicate, which can go a long way in promoting positive team dynamics.

Psychologically safe workforces are also better equipped to offer employees a healthier work-life balance. This, as Ramgobin explains, can increase key business metrics such as productivity and efficiency, by providing employees with a higher degree of focus. It can also promote greater staff retention, as employees are more likely to remain with a company that prioritises their wellbeing.

“Another important benefit to consider is better employee health outcomes, which means reduced healthcare costs and absenteeism. Meaning, the business also remains healthy,” she adds.

Leadership strategies for long-term success

For Ramgobin, there is arguably no role that can trump that of an effective leader in building psychologically safe workplaces. “I always believe that real change starts with the leader. Leaders should model open communication, vulnerability, and a willingness to admit mistakes. When employees see their leaders being open and honest, they are more likely to feel safe doing the same,” she says.

Active listening is another crucial part of the equation. Leaders should listen to employees without judgment, showing empathy and understanding. Constructive feedback should focus on behaviours and actions rather than personal traits.

Leaders also need to focus on creating a culture where sharing ideas and asking questions is encouraged, helping employees feel comfortable and respected. It is equally important to acknowledge the contributions of employees who consistently go the extra mile in their roles. Individual and team successes should be publicly recognised and celebrated to reinforce that their efforts are truly valued. The power of a simple ‘thank you’ should never be underestimated.

“Besides our employee recognition programme, in South Africa, we have started a Young Talent programme to discover and grow young employees who are having an impact in their local environment. It is seldom one thing that makes a difference. It is many things,” Ramgobin explains.

By adopting a solutions-oriented mindset and working with leaders to address any issues, solve problems and formulate solutions for the betterment of all stakeholders, employees can become active drivers of organisational change. Conversely, employees can support the efforts of their leaders by providing them with regular feedback on various aspects of their work environment, such as workload, resources, training needs, and career development opportunities.

As Ramgobin concludes: “Fostering psychological safety and prioritising mental health is vital for cultivating a thriving workplace culture. This is especially important as younger generations, such as Generation Zers, are more likely to job hop and quit their jobs without any back-up plan, should they find their jobs unfulfilling or unenjoyable. Leaders must commit to nurturing environments where employees of all ages feel safe and valued. This commitment not only improves individual wellbeing but also enhances team dynamics, boosts productivity, and ultimately propels organisational success. Embracing the power of psychological safety, we create organisations where everyone can flourish.”