Why psychological safety in the workplace is the catalyst for innovation, not a cushion for mediocrity

Four months into 2025, the tech industry is dangerously close to stifling innovation, growth, and the potential of its teams across the globe.

With Diversity, Equity, and Inclusion (DEI) programs being cut back in many organizations, mass layoffs sweeping across industries, and remote work tensions escalating, we’re entering dangerous territory when it comes to deprioritizing the most important thing for long-term success in competitive industries – psychological safety.

Misunderstood as avoiding discomfort and mislabelled as a ‘soft issue’, psychological safety is far from a luxury. It’s the catalyst for creative problem-solving, collaboration, and resilience. Without it, companies risk undermining their most valuable resource: their people.

There is also a clear connection between psychological safety and DEI: when employees from all backgrounds feel safe to speak up, share new perspectives, and contribute without fear of exclusion, teams thrive. But when DEI initiatives are scaled back, marginalized voices are often silenced, collaboration suffers, and innovation stalls – undermining the very people companies rely on to succeed.

Having worked with teams in high-pressure industries for many years as an organizational psychologist, I’ve seen firsthand how critical psychological safety is to team effectiveness and creative growth. Here’s my case for why psychological safety should be at the heart of every business strategy and actionable steps to make it happen.

Adapting to change: the role of psychological safety in long-term success

The modern workplace is evolving rapidly, bringing new levels of complexity and pressure. Companies must adapt and find new ways of working to drive sustainable growth. In this context, psychological safety – where employees feel secure in sharing ideas, asking questions, and admitting mistakes – is critical.

Instead of easing the pressures employees face, many organizations are scaling back on the very systems and structural supports, like DEI programs, that allow employees to feel heard and valued. When companies deprioritize these crucial elements, they risk further escalating tension and disengagement among their workforce.

The focus on short-term performance and cost-cutting often leads to ignoring the long-term benefits of creating inclusive, safe spaces where employees can thrive.

The evidence for psychological safety in explaining long-term team success is vast. For example, Google’s Project Aristotle found that psychological safety was the key factor driving collaboration and creative problem solving in their high-performing teams. This aligns with consistent academic research, which shows that psychological safety is linked to better team engagement and performance across industries.

Short-term performance vs. long-term innovation

However, it’s important to recognize that high performance can happen in the short term even in toxic environments. In such cases, where employees are afraid to speak up or share ideas due to fear of ridicule or punishment, people may appear to be working hard, but they’re not truly collaborating or innovating.

A stark example is the Challenger Space Shuttle disaster, where NASA’s high-performance culture, driven by intense pressure and a fear of failure, led to a catastrophic result. Engineers’ concerns were ignored, ultimately costing lives.

[Work] is not just a grind or a race to meet short-term goals – it’s a learning journey for the long haul

Even though there aren’t lives at stake in most industries, the consequences of ignoring psychological safety can still be severe. When it is undermined, those already at the margins of the organization (typically from historically underrepresented groups) are disproportionately affected.

They may feel more vulnerable, as they lack the support systems necessary to voice concerns, contribute ideas, or challenge the status quo without fear of being overlooked or dismissed. This not only harms their engagement but also prevents the organization from tapping into the full potential of its diverse teams.

How to build a culture of psychological safety

Creating psychological safety requires more than just good intentions – it demands deliberate action at every level of the organization. These practices aren’t quick fixes, they lay the foundation for a culture where employees feel empowered to take risks, innovate, and collaborate freely, and where success is measured by sustainability and long-term resilience.

• Structured check-ins ensure ongoing support and connection, aligning with the broader organizational vision. These check-ins, whether weekly or monthly, offer employees the chance to share concerns, receive support, and align with the company’s long-term objectives. Monthly surveys create continuous feedback loops, ensuring that everyone’s voice is heard and can be acted upon.
• Consistent feedback loops encourage growth and open dialogue, but it’s not just about addressing issues in the moment. It’s about fostering a culture where feedback contributes to continuous improvement and sustainable development. Employees should feel confident that their input leads to long-term positive change.
• Open communication channels are essential for inclusivity and trust. Transparent spaces like AMAs (Ask Me Anything) or open Slack channels empower employees to engage with leadership and peers, and are vital to creating an authentic culture of openness. These channels are critical to maintaining trust and encouraging innovation in the long run.
• Celebrating both wins and learnings reinforces a growth mindset, where mistakes aren’t just tolerated, but they’re seen as opportunities for improvement. This mindset nurtures resilience, allowing employees to experiment and innovate without fear of failure, ultimately contributing to the company’s adaptability and long-term success.
• Leaders must actively foster psychological safety by modeling vulnerability and empathy. By admitting mistakes and understanding the emotional needs of their teams, leaders create an environment where trust and engagement can thrive, setting the company up for long-term innovation.
• Balancing psychological safety with accountability fuels innovation and growth. Too little safety can create fear and hinder momentum, while misaligning it with accountability can lead to complacency. Leaders should foster an environment where employees feel safe to take risks but are also held accountable for their responsibilities.

Redefining work: fostering growth through psychological safety

We need to redefine work. It’s not just a grind or a race to meet short-term goals – it’s a learning journey for the long haul. High performance thrives on consistency, not intensity. Success comes from sustainable effort. When we prioritize psychological safety, we create environments where creativity and problem-solving flourish, driving real, lasting growth.

Companies that embrace this mindset won’t just survive, they’ll thrive. Psychological safety unlocks the full potential of diverse teams, giving them the space to innovate, experiment, and drive progress. This isn’t a ‘soft’ priority – it’s the competitive advantage that propels businesses forward and fuels long-term success.