Why You Need Psychological Safety At Work For Employee Retention

All organisations have a legal and ethical obligation to provide a safe workspace to their employees. Safety in this context does not end at mere physical safety or protection against workplace injuries and illnesses. Employees also deserve a workplace where they feel psychologically and emotionally safe. In this blog post, we will explore the significance of psychological safety at work, particularly in the Indian social context, and how it affects your ability to attract and retain top talent.

What Is The Meaning Of Psychological Safety?

As part of our ongoing focus on Diversity, Inclusion and Belonging in Indian workplaces, Indeed conducted a study titled Where the Mind Is Without Fear. In this, psychological safety is defined as the absence of any sense of fear or anxiety that arises in social situations.

In a workplace context, this would mean the absence of any fear or anxiety when interacting with your colleagues or seniors. This kind of interpersonal fear can manifest itself in feelings of nervousness, apprehension, or a general feeling of discomfort during social/personal interactions in the workplace.

In an article on this subject in The Harvard Business Review, Amy Gallo defines psychological safety from a team perspective. It is a belief shared between members that they can express their concerns and ideas, ask questions, and even admit their mistakes – all without fear of negative consequences.

An employee working in a psychologically unsafe office may feel excessive fears about scrutiny, criticisms, or getting embarrassed in front of others. A perceived lack of respect or acceptance from others can lead to intense feelings of isolation in the workplace.

In contrast, an employee in a psychologically safe workplace feels confident about voicing their opinions and taking the initiative in projects. They feel comfortable in their natural selves during interpersonal interactions and feel respected and accepted by all.

What Is The Significance Of Psychological Safety In The Workplace?

The concept of psychological safety in the workplace was pioneered by Amy Edmondson, professor of Leadership and Management at Harvard Business School. The term was popularised with the publication of her seminal work – Psychological Safety and Learning Behaviour in Work Teams in 1999.

Based on her extensive research and subsequent studies by others, psychological safety is now widely considered as a vital component for healthy and productive organisations. The latest among these is a 2022  study by the researchers at The University of Tokyo which included 200 employees in a high-stress sector like healthcare.

Not surprisingly, McKinsey echoes similar sentiments, calling psychological safety as the critical factor behind creation of well-performing teams. Employees in such teams display higher morale, significantly improved creativity levels, the freedom to speak their minds, and the confidence to take some risks.

Organisational Factors That Affect Psychological Safety In Workplaces

When employees feel that a workplace is psychologically unsafe, it can have a devastating impact on their mental health. The Canadian Centre for Occupational Health and Safety highlights more than a dozen organisational factors that can impact the psychological health of employees.

In organisations that do not respect the need for better work-life balance, employees end up facing high levels of stress, dissatisfaction, fatigue, and a host of other issues ranging from depression to high cholesterol.

Workplaces that do not encourage civil and respectful interactions often have high levels of workplace bullying, interpersonal conflicts, and other forms of aggressive behaviours. These can increase feelings of stress, anxiety, and depression among employees.

The leadership plays a defining role in the erosion of psychological safety in the workplace. According to multiple news reports in 2023, toxic behaviour among managers is a leading cause of employee burnout and resignations in India.

And it is not just physical offices that are affected by the lack of psychological safeguards. According to Bryan Robinson, Professor Emeritus at the University of North Carolina and an expert on work-life balance and burnout, the risk of stress and burnout can be even higher in modern hybrid workplaces.

In a Forbes article, ten signs are highlighted which indicate the lack of psychological safety measures in a hybrid workplace. Major ones include the absence of any managers working in remote positions, scheduling of team meetings at odd hours, and lack of career path for remote/hybrid employees.

Why You Can No Longer Afford To Ignore Psychological Safety In India

Workplaces in India have a horrendous track record when it comes to employee mental health and safety. According to a McKinsey Health study on employee mental health in Asia, four in ten Indian employees reported elevated rates of burnout, distress, anxiety, and depression.

Toxic workplaces were cited as the reason in 90 percent of the cases. Over 41 percent of employees reported inadequate separation between work and personal life in their current positions. Indians were 60 percent more likely than their global peers to consider leaving their jobs.

There is a clear connecting link between psychological safety and employee retention. With the ever-widening skill gap, nearly three-quarters of all organisations in India are struggling to fill vacancies, particularly in tech.Business leaders who focus on the creation of inclusive workplaces and positive company culture will benefit in the highly competitive hiring landscape. Such organisations will find it easier to attract top talent with a positive employer branding linked to psychological safety.