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The importance of psychological safety in fostering an open and inclusive work environment

Psychological safety is a critical factor in creating an open and inclusive work environment. It is the shared belief within a team that individuals can express themselves, take risks, and speak up without fear of negative consequences such as embarrassment, rejection, or punishment.

Key data points:

89%

Nearly nine out of ten (89%) employees believe that psychological safety in the workplace is essential.
Source: McKinsey

#1 Factor
Psychological safety is the most important factor in creating successful teams.
Source: Google

$4 ROI
Companies that prioritize mental health see a return of $4 for every $1 invested.
Source: Deloitte

Only 10% of employees feel very comfortable expressing their opinions at work, with 93% of UK employees having left jobs due to a toxic workplace.

Source: Farer Consulting

The role of psychological safety in teamwork

Psychological safety significantly impacts teamwork and collaboration. Google’s Project Aristotle, a comprehensive study examining 250 attributes across 180 teams, found that psychological safety was the most significant driver of team success. Despite initial beliefs that culture and management styles were the key factors, the study revealed that teams with high psychological safety outperformed others, even when individual members were equally qualified.

Julia Rozovsky, who led Project Aristotle, identified dependability, structure and clarity, meaning, and impact as essential ingredients of a successful team. However, the realization that psychological safety was critical led to a deeper understanding that, regardless of an employee's qualifications, they would not be as effective without a sense of psychological safety.

Psychological safety and diversity

From a Diversity, Equity, and Inclusion (DE&I) perspective, psychological safety is crucial for diverse teams to thrive. Research by Henrik Bresman of INSEAD and Professor Amy Edmondson of Harvard found that while diverse teams might initially perform less effectively, those with high levels of psychological safety saw positive correlations between diversity and performance. Conversely, in teams with low psychological safety, diversity was negatively correlated with performance.

The broader benefits of psychological safety

The benefits of psychological safety extend beyond individual performance. It promotes a culture of trust and collaboration, where diverse perspectives are valued, and employees feel empowered to contribute to their fullest potential. A report by Harvard Business Review found that organizations with high levels of psychological safety experience higher levels of employee engagement, creativity, and productivity.

Creating psychological safety requires deliberate efforts from leadership. Leaders must model inclusive behaviors, provide constructive feedback, and encourage open communication. Training programs and initiatives that promote mental health and well-being also play a crucial role in fostering psychological safety.

 

SIG’s commitment to psychological safety

At SIG, we have implemented several initiatives to promote psychological safety, starting in the Americas and expanding globally. These initiatives include training programs on inclusive leadership, mental health support services, and platforms for open dialogue. Our commitment to psychological safety is reflected in our recent employee engagement survey results, where 84% of our employees agree that their immediate supervisors genuinely care about their wellbeing, and 85% feel that communication from their managers is transparent and regular—both scores aligning with or exceeding the high-performance benchmark. Additionally, 89% of our employees believe that SIG provides a working environment free of discrimination and harassment, surpassing the benchmark by 2 percentage points. These strong results underscore our dedication to creating a culture where all employees feel valued, respected, and empowered to contribute to our collective success.