How to create psychological safety at work: A complete guide for 2026

In 2026 psychological safety at work has moved from academic theory to business necessity. As workplace engagement continues to decline globally, HR and people leaders are under pressure to create greater trust, connection, and team cohesion at work. That’s pushed psychological safety rapidly up the priority list - and for good reason. Research shows it's the top factor in high-performing teams, driving 27% lower turnover and 12% higher productivity (Gallup, 2017). And it makes a measurable difference to team performance and wellbeing – but unlike many engagement initiatives, psychological safety doesn’t require a big budget.  

In this article, we’ll explore practical, evidence-based strategies you can apply at work - even with limited resources. 

This guide covers:  

• What psychological safety is
• Why psychological safety matters
• The neuroscience behind psychological safety
• And common questions about creating psychological safety.

What is psychological safety at work? 

Psychological safety at work is a shared belief that employees can speak up, take risks, and admit mistakes without fear of punishment. Proven to boost productivity, spark innovation, and improve retention (Gallup; The Open Psychology Journal), psychological safety matters when it comes to building a high-performing team. Without psychological safety, employees can struggle to express themselves authentically in their workplace, fearing negative consequences to their reputation, status, or career. But in psychologically safe environments, team members feel comfortable speaking their minds, taking risks, and asking what could be seen as ‘stupid’ questions in a less accepting environment.  
 

Why psychological safety matters for high-performing teams 

Psychological safety allows teams to build positive emotions like trust, curiosity, confidence, and inspiration - and those in turn help to broaden thinking and create a working environment where individuals feel valued, accepted for who they are, and able to try new things. And that freedom often leads to improved innovation and performance.  

The connection between psychological safety and team performance is further backed by compelling research ranging from 1999 through to 2024. The discoverer of psychological safety, Dr Amy Edmondson, carried out exhaustive research on the benefits of psychological safety, coming to the conclusion that: 
 

The neuroscience behind psychological safety 

But why is this? Teams with high psychological safety perform better because the simple fact of being able to openly discuss options, emotions and mistakes helps to create a learning environment, where people are free to evaluate and iterate on ideas.  

When workplaces feel challenging but not threatening, teams operate in what psychologists call "broaden-and-build mode" (Barbara Fredrickson, 2001). The brain releases oxytocin, the ‘love’ or ‘connection’ hormone, which encourages trust-building behaviours. This neurological response creates a positive cycle where psychological safety reinforces itself through improved team dynamics.  

And with those improved team dynamics, teams can achieve: 

• Faster learning – Mistakes are surfaced and used as opportunities to grow.
• Stronger collaboration – Trust and open communication improve teamwork.
• Higher engagement – People feel valued and are more motivated to contribute.
• Better decisions – Diverse views are heard, reducing groupthink. 

Examples of psychological safety in real workplaces:  

Lovely, you might think, but how does it translate to real workplaces? Major organisations like Google and Microsoft have long recognised psychological safety as a key driver of performance, innovation, and adaptability – prioritising it in their working practices. 

Google – Project Aristotle 

Google’s Project Aristotle analysed over 180 teams to uncover what drives team effectiveness. The top finding? Psychological safety was the most crucial factor for high performance. 

Those that felt safe to speak up, take risks, and challenge ideas were more innovative, collaborative, and resilient. 

Source: Google re:Work (2016). Understand Team Effectiveness 

Microsoft – The new future of work 

Microsoft’s New Future of Work research explored how hybrid and remote work are reshaping team dynamics. And it found that psychological safety plays a crucial role in remote collaboration. Hybrid and remote teams with psychological safety experienced better communication, stronger inclusion, and more openness. Interestingly, they also found that leaders who model vulnerability helped create these conditions, enabling teams to stay connected even across distance. 

Source: Microsoft Research (2023). The New Future of Work  

FAQs: Common questions about psychological safety at work