10 simple things that increase psychological safety

Poor psychological safety costs Australian businesses an estimated $6 billion every year in lost productivity, absenteeism, and turnover. And it’s not just numbers on a page – it’s your team working slower, jobs needing to be redone, shortcuts leading to safety risks, and skilled people walking off the job. When your people don’t feel safe to speak up, you’re not just losing trust – you’re losing output, time, and money.

What Is Psychological Safety?

Psychological safety is when people feel confident to speak up, contribute ideas, and share feedback or information without fear of being punished, embarrassed, or ignored. In white-collar environments this means not speaking up when a big client project is at risk, not asking for help when team members are feeling overwhelmed, or not being open when they’re being bullied or harassed at work.

In blue collar environments such as on site or in the workshop, that means workers are comfortable raising safety concerns, asking questions if they’re unsure, or admitting mistakes early before they become costly problems.

Too often in blue-collar industries, a “toughen up and get on with it” mindset shuts people down. When workers keep quiet, you don’t hear about issues until it’s too late – whether that’s an injury, a machine breakdown, or another good tradesperson leaving.

When the key behaviours that combine to allow success in a job are a list of observable competencies, we can easily assess performance, teach and develop, establish expectations, and hold people accountable.

Why Should You Care?

Under the Work Health and Safety Act 2011, employers are required to protect both physical and psychological health. That includes creating a culture where people feel safe to raise concerns, flag risks, and do their work without fear of harm. Risks to this safety include bullying, excessive workloads, poor communication, lack of support from supervisors, or never being recognised for hard work.

But it’s not just about ticking the compliance box. Businesses that foster psychological safety see real improvements on the ground:

Higher productivity and engagement: Teams work harder, faster, and safer when they know their input matters.

Lower turnover and absenteeism: Supportive environments reduce stress and burnout, meaning fewer sick days and less time spent training replacements.

Fewer mistakes and disputes: Open communication means problems are dealt with early, avoiding costly rework, blowouts, and conflicts.

Better teamwork and problem-solving: When people feel comfortable speaking up, they share ideas and fix issues faster – leading to stronger performance overall.

Psychological Safety is shown to underpin all other areas of performance in the workplace.

10 Practical Tips to Build Psychological Safety

Here are 10 ways to start creating a psychologically safer, more productive workplace culture:

1. Finish meetings with a question. Whether it’s a morning planning meeting or toolbox meeting, always end with “Is anyone unsure about what they’ve got to do?” or “Does anyone have any questions before we get started?”. Catch confusion early before it leads to mistakes and create a culture where asking questions and seeking clarity is the norm.

2. Add team shout-outs. At the end of toolbox talks or morning meetings, call out good work from the team. Pay specific attention to calling out the behaviors you want to see more of in your team. This could be asking for help/clarification, flagging a potential issue early, or supporting a colleague.  This builds trust and reinforces positive behaviours.

3. Normalise mistakes When something goes wrong, frame it as “What can we learn?” instead of “Who stuffed up?”, so team members feel safe admitting errors before they snowball into rework, downtime, or safety risks.

4. Managers walk and ask. Make a habit of speaking to your team and asking “What’s getting in your way today?”, uncovering hidden problems before they cause bigger issues.

5. Be a Visible Leader Aim to personally check in with staff members each day, building relationships, making yourself visible, and showing workers that they can raise concerns directly.

6. Follow through. If someone raises a concern, fix it or explain why it can’t be fixed right now, reinforcing that speaking up leads to real outcomes and maintaining trust.

7. Tackle psychosocial risks head-on. Don’t ignore bullying, fatigue, or poor communication - deal with them straight away.

8. Recognise and reward. Celebrate small improvements, safe practices, and teamwork, giving a quick “thanks” in front of peers to reinforce positive behaviours and build confidence.

9. Stay steady under pressure. When things go wrong, respond calmly and consistently, showing your team they can raise issues safely even in high-stress moments.

10. Model it yourself. Admit when you’ve made a mistake or don’t know the answer, giving your team permission to do the same and creating a culture of openness and learning. 

The Bottom Line

Psychological safety isn’t about lowering standards  - it’s about keeping output high, reducing mistakes, and keeping good people on the job. Start with small daily habits , build consistency in how leaders respond, and you’ll see your team become more engaged, productive, and reliable.