Psychological Safety vs. Team Performance: Key Insights

Psychological safety and team performance are two key drivers of workplace success - and they’re deeply connected. Teams that feel safe to share ideas, admit mistakes, and take risks consistently outperform others. Here’s why this matters and how leaders can create the right balance:

• Psychological Safety: It’s about creating an environment where team members feel safe to speak up without fear of judgment or punishment. This fosters open communication, innovation, and learning.
• Team Performance: High-performing teams align around shared goals, leverage individual strengths, and maintain clear roles and processes. But even the most talented teams can fail without trust and coordination.
• The Connection: Research shows psychological safety is one of the strongest predictors of team success, driving productivity, creativity, and innovation. Teams with safety are six times more likely to tackle complex problems effectively.

Quick Key Points:

• 89% of employees say psychological safety is essential, but only 47% feel their workplace provides it.
• Teams with safety are better at collaboration, innovation, and adapting to change.
• High performance builds trust, which further strengthens psychological safety.
• Leaders play a critical role - 70% of employee engagement variance is tied to their manager.

Bottom Line: Psychological safety isn’t just a “nice-to-have” - it’s the engine that powers team performance. Leaders who prioritize both create environments where teams thrive.

Build a Stronger Team by Balancing Psychological Safety With Accountability

How Psychological Safety Drives Team Performance

When team members feel secure enough to express their thoughts openly, the results can be transformative - better collaboration, more creativity, and higher levels of achievement. This connection between psychological safety and peak team performance is foundational, and here’s how it plays out in practice.

Encouraging Open Communication

Open communication is the backbone of high-performing teams, and psychological safety makes it possible. When team members feel safe, they’re more likely to share ideas, ask questions, and give honest feedback.

"When team members feel safe, they are more likely to communicate openly, honestly, and transparently".

This openness is especially valuable when dealing with mistakes or roadblocks. Research highlights that teams with psychological safety are better at sharing knowledge and offering constructive feedback, which fosters a culture of learning and growth.

Leaders are instrumental in creating this kind of environment. By actively listening and showing genuine interest in team members’ perspectives - without jumping to judgment - they set the tone for honest conversations. When leaders are transparent about decisions and challenges, it further reinforces trust and openness within the team.

Supporting Innovation and Risk-Taking

Innovation thrives in spaces where it’s okay to take risks. Teams with high psychological safety are six times more likely to tackle complex problems effectively. Why? Because they feel free to share bold ideas, question outdated processes, and propose improvements.

"Psychological safety is literally mission critical in today's work environment. You no longer have the option of leading through fear or managing through fear. In an uncertain, interdependent world, it doesn't work - either as a motivator or as an enabler of high performance".

When team members feel safe challenging the status quo, they reach the highest level of psychological safety. Mistakes are seen as stepping stones for learning, not failures, which builds confidence and encourages even more experimentation. This mindset makes teams more flexible and better equipped to adapt to changing conditions.

Building a Learning Culture

Psychological safety also lays the groundwork for a team culture centered on continuous learning. When people feel comfortable admitting they don’t know something, asking for help, or reflecting on their missteps, the team as a whole performs better.

"Continuous improvement is impossible without psychological safety".

In teams like these, failures aren’t swept under the rug - they’re opportunities to learn and improve. Leaders who thank team members for surfacing problems and focus on fixing systems rather than assigning blame reinforce this mindset.

Timothy R. Clark refers to this as "a culture of rewarded vulnerability". By supporting openness about challenges and encouraging experimentation, teams not only refine their processes but also foster individual and collective growth. This steady improvement drives better outcomes over time.

The Two-Way Connection Between Safety and Performance

Psychological safety and high performance go hand in hand, creating a reinforcing cycle that benefits everyone involved. When teams perform well, they often experience a boost in psychological safety, which in turn fuels even better performance. This dynamic is what sets truly exceptional teams apart - they don’t just improve once and stop; they build on their success continuously. Let’s break down how this works and look at some real-world examples that illustrate the connection.

How High Performance Builds Psychological Safety

When a team succeeds, trust and mutual respect naturally grow. This success strengthens the belief that the team can tackle tough challenges, making members more comfortable being open and honest with one another. This openness creates a cycle of trust and improvement. As team members see their efforts leading to positive results, they’re more likely to speak up and contribute in the future.

Consistent success also validates individual contributions, giving people the confidence to share their ideas and concerns.

"Teams with strong cultures are rated twice as effective by executives".

High-performing teams also tend to gain more organizational support, which allows them to experiment and take calculated risks. This freedom to innovate further enhances psychological safety, reinforcing the benefits of open communication and collaboration.

Examples and Case Studies

Google’s Project Aristotle is a great example of the link between performance and psychological safety. Between 2012 and 2014, Google studied 180 teams to figure out what made some more effective than others. The research found that psychological safety was the most important factor for team success. It also showed how high performance reinforced that safety.

"Even the extremely smart, high-powered employees at Google needed a psychologically safe work environment to contribute the talents they had to offer".

Teams with high levels of safety admitted mistakes, collaborated more effectively, and innovated, which boosted both productivity and job satisfaction. The study also pointed to factors like equal participation in conversations and high social sensitivity as key contributors to this positive cycle.

Another example comes from a pharmaceutical company that transformed its dysfunctional sales team of over 75 people. The team had been struggling with interpersonal conflict and high turnover. By restructuring into smaller groups with team-based goals and rewards for collaboration, the company saw performance improve. As these smaller teams hit their targets, psychological safety grew, leading to better teamwork and stronger results.

Deloitte's leadership development program also highlights how organizations can intentionally create this cycle. In 2023–2024, Deloitte launched a 25-hour leadership course to help teams thrive through open dialogue and learning from mistakes. More than 100 partners and leaders completed the program over two years.

"We want a workplace culture where disagreement isn't feared. Without room for error or differing opinions, it's impossible to build sustainable teams capable of evolving together." - Ninna Friis Gleberg, Head of Deloitte's Leadership Academy.

A global manufacturing company offers yet another example. Its CEO noticed a lack of meaningful discussions among the executive team. By introducing new norms that encouraged both psychological safety and accountability, the team became more open to challenging ideas. This led to better decision-making and stronger performance. As the team’s results improved, members felt even safer sharing their thoughts, creating a cycle of continuous growth.

These examples show how performance and psychological safety are deeply connected. Teams that recognize this relationship can work on building both at the same time, ensuring long-term success rather than treating these as separate goals.

Leadership's Role in Building Psychological Safety

Leaders play a crucial role in shaping environments where safety, openness, and performance thrive. Yet, research reveals that only 25% of leaders exhibit behaviors that foster a positive and secure work atmosphere where employees feel empowered to contribute. This section delves into how leadership styles and deliberate actions can promote psychological safety, reinforcing the connection between safety and performance.

A staggering 70% of the variance in employee engagement is tied to an individual's manager. This underscores just how much influence leaders have over their teams' success. When leaders adopt the right approaches, they create a foundation where safety and high performance can coexist seamlessly.

Leadership Styles That Build Safety

The most effective leaders prioritize collaboration and empathy over rigid, top-down management styles. Consultative leaders actively seek input from their teams, encouraging diverse perspectives and signaling that it’s safe to share ideas - even those that challenge norms. Similarly, supportive leaders lead with empathy, vulnerability, and humility, setting an example for their teams to follow.

"...revise our flawed and outdated leadership archetypes and models so that we select leaders on the basis of their competence and confidence and on the basis of their humility, curiosity, empathy, and coachability." - Tomas Chamorro-Premuzic, Chief Talent Scientist at ManpowerGroup and Professor of Business Psychology at University College London and Columbia University

Leaders who focus on building trust and prioritizing their team’s needs cultivate safer environments. Flexible leaders, who stay open to new ideas and involve others in decision-making, empower their teams by fostering a sense of shared responsibility.

Action Steps for Leaders

Leadership styles set the tone, but intentional actions bring psychological safety to life. For starters, leaders can provide clarity about tasks by addressing their novelty, risks, and complexities. When employees understand that challenges are part of the process and perfection isn’t always the goal, they feel more comfortable taking risks, such as asking for help or sharing unconventional ideas.

Modeling vulnerability is another powerful tool. Leaders who openly share their struggles and admit to mistakes create a culture where team members feel safe to do the same. This openness fosters an environment where learning from missteps becomes the norm.

Consistency is vital. Leaders must align their words with their actions and respond constructively to mistakes or tough questions. Encouraging feedback and valuing diverse viewpoints reinforces the idea that every voice matters.

Establishing clear norms for handling failure, offering feedback, and making decisions helps shift the focus from blame to growth. Actively listening - giving undivided attention and validating contributions - builds trust and strengthens team cohesion.

Providing respectful, constructive feedback is equally important. When done thoughtfully, it supports individual growth while maintaining the safe environment leaders aim to create.

The numbers don’t lie. A study by Crucial Learning found that 90% of 1,300 employees surveyed felt unsafe to express their thoughts at least once in the past 18 months. Gallup research further highlights that when employees feel their opinions matter, organizations see 27% lower turnover, 40% fewer safety incidents, and 12% higher productivity.

"When it comes to psychological safety, there's much to embrace. Organizations that foster psychological safety benefit from improved employee engagement, reduced turnover, and heightened productivity. For knowledge work to flourish, the workplace must be one where people feel able to share their knowledge! This means sharing concerns, questions, mistakes, and half-formed ideas." - Amy C. Edmondson

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Methods for Balancing Safety and High Performance

Finding the sweet spot between psychological safety and high performance is no small task. It takes deliberate strategies that build trust while ensuring accountability. When organizations get this balance right, teams feel confident speaking up and consistently hit ambitious targets.

Contrary to some misconceptions, psychological safety doesn’t mean lowering the bar. Research shows that pairing safety with high expectations actually enhances team performance. The trick lies in implementing practical approaches that support both elements at the same time. Here’s a closer look at how to create that alignment.

Building Trust While Maintaining Accountability

Trust is the cornerstone of any successful team, but it needs to go hand-in-hand with clear expectations and accountability. A great way to achieve this is by fostering transparency about goals while also prioritizing team members’ growth and well-being.

Start by setting crystal-clear expectations. When people know exactly what’s required of them, they can channel their energy into achieving results instead of second-guessing what success looks like. As Brené Brown puts it, “clarity is kindness”. Leaders who genuinely care about their employees - by investing in their development, providing the right resources, and recognizing both effort and outcomes - create a foundation of trust.

It’s also important to level the playing field. Leaders who avoid flaunting their authority make it easier for team members to speak up, share concerns, or admit mistakes. Offering constructive feedback focused on behaviors rather than personal traits further reinforces accountability without undermining psychological safety. These techniques, backed by research, foster a culture where teams can continuously improve.

Trust-Building Strategy	Accountability Element	Combined Impact
Regular check-ins	Clear performance metrics and deadlines	Better alignment and transparency
Recognizing effort and learning from failures	Constructive feedback on specific behaviors	Stronger engagement and improvement
Investing in professional development	SMART goals and progress tracking	Enhanced skills with clear direction

Supporting Different Perspectives

Beyond trust, encouraging diverse perspectives is another key to balancing safety and performance. Teams that embrace varied viewpoints often come up with more creative solutions and make smarter decisions, especially when these perspectives are tied to shared goals.

Organizations can create space for open communication by offering multiple ways for team members to share ideas, concerns, and feedback. Whether it’s through brainstorming sessions, anonymous surveys, or cross-department workshops, these systems ensure that everyone feels heard and valued. Collaborative projects that bring together different teams naturally promote diverse thinking while holding everyone accountable to common objectives.

Mistakes should also be treated as opportunities to learn. When leaders respond empathetically and take the time to understand what drives each team member, they strengthen psychological safety and align individual contributions with team goals. A great example of this is the 1969 NASA moon landing. It was a massive undertaking that brought together thousands of people - scientists, engineers, and astronauts with different expertise - all working toward one ambitious mission.

Working with External Experts

Sometimes, organizations need an outside perspective to strike the right balance between safety and performance. Leadership transformation experts can help identify blind spots and craft strategies tailored to unique challenges, complementing internal efforts to build a thriving workplace culture.

Take Seth Mattison, for example. He’s a specialist in leadership transformation and workplace design, offering keynote speeches, workshops, and advisory services. His work focuses on helping organizations navigate change while fostering environments that prioritize both psychological safety and high performance.

External consultants bring an unbiased lens to internal challenges, introduce proven frameworks, and facilitate tough conversations that leaders might struggle to handle on their own. For senior leadership teams, these experts can model the behaviors needed to create lasting culture shifts. While hiring external expertise requires an investment, it often speeds up progress, reduces trial-and-error, and delivers long-term results.

Conclusion: How Safety and Performance Work Together

Psychological safety and team performance are deeply interconnected, creating a cycle that drives a team toward its best results. Teams that feel free to speak up, take calculated risks, and learn from their mistakes consistently outperform those where fear stifles creativity and growth.

Key Lessons for Leaders

Great leaders recognize that psychological safety is the cornerstone of exceptional performance. Instead of focusing solely on outcomes, they prioritize creating an environment where excellence can naturally thrive.

Take Google, for example. A three-year study involving 50,000 employees revealed that psychological safety was the most critical factor distinguishing the company’s top-performing teams. Despite this, a McKinsey & Company survey found that only 26% of business leaders regularly exhibit the behaviors needed to nurture psychological safety. This disconnect highlights a significant opportunity for organizations willing to adopt the right leadership practices.

Leaders who excel at fostering psychological safety encourage open dialogue. They actively invite questions and concerns, ensuring team members feel heard without fear of retaliation.

The best leaders also strike a balance between encouraging experimentation and maintaining accountability. They make it clear that while mistakes are part of the learning process, performance standards remain important. This balance creates an environment where innovation and responsibility can coexist.

Additionally, vulnerability and humility are essential traits for leaders aiming to build psychological safety. When leaders admit they don’t have all the answers, ask thoughtful questions, and share knowledge openly, they set the tone for a culture of trust and openness.

Final Thoughts on Success

For organizations, the ability to balance psychological safety with performance standards can be a game-changer. Consider the findings from Gallup: improving the ratio of employees who feel their opinions matter can reduce turnover by 27%, cut safety incidents by 40%, and boost productivity by 12%. Yet, the challenge remains - according to a study by Crucial Learning, 90% of 1,300 employees reported feeling unsafe to voice their thoughts at least once in the past 18 months.

"A psychologically safe environment enables divergent thinking, creativity, and risk-taking and motivates engagement in exploratory and exploitative learning, thereby promoting team performance".

The road ahead demands intentional leadership. Leaders must commit to personal growth, model the behaviors they want to see in their teams, and establish systems that support both safety and accountability. Experts like Seth Mattison (https://sethmattison.com) emphasize that combining psychological safety with clear performance expectations is key to long-term success.

When teams feel safe to share ideas and take risks, they unlock their full potential. In such environments, high performance becomes not just a goal but a natural outcome.

FAQs

What are the best ways for leaders to measure and improve psychological safety in their teams?

Leaders can gauge psychological safety by using anonymous surveys or assessments. These tools help determine how comfortable team members feel when sharing ideas, admitting mistakes, or taking risks without fear of criticism. The data collected offers a clear picture of team dynamics and highlights areas that may need attention.

To strengthen psychological safety, leaders should prioritize open communication and inclusivity. This means encouraging team members to voice their opinions, viewing mistakes as opportunities to learn, and celebrating a variety of perspectives. When leaders demonstrate vulnerability and empathy, they set the tone for a culture where everyone feels respected and safe to contribute.

How can team members help create a psychologically safe environment?

Team members play a key role in creating a sense of psychological safety within a group. One way to do this is by promoting open communication - share your own thoughts openly and encourage others to do the same. This helps ensure everyone feels heard and valued. When mistakes occur, approach them as chances to learn and grow rather than assigning blame. This mindset fosters trust and a supportive atmosphere.

Another important step is respecting different perspectives. Actively listening to your teammates not only builds understanding but also strengthens relationships within the team. Encourage and support each other in taking thoughtful risks and proposing new ideas. This reinforces the idea that creativity and experimentation are welcome in the group. These small but impactful actions can make a big difference in building psychological safety and boosting team success.

How does psychological safety impact innovation and risk-taking in successful teams?

The Role of Psychological Safety in Team Success

Psychological safety is a game-changer for teams aiming to innovate and take calculated risks. When people feel confident sharing their ideas, asking questions, or voicing concerns without worrying about judgment or backlash, creativity thrives. This kind of openness creates a space where even rough or unconventional ideas can emerge - ideas that often spark meaningful improvements or unexpected solutions.

In teams where psychological safety is prioritized, collaboration tends to flow more naturally. Members are more engaged, productivity rises, and the group works together more effectively. On the flip side, when this sense of safety is missing, creativity often takes a hit. Fear of criticism can cause team members to hold back, keeping valuable ideas under wraps.

Psychological safety isn’t just a nice perk - it’s a cornerstone of innovation, teamwork, and overall success.