Navigating the Four Stages of Psychological Safety: Building Trust and Innovation in the Workplace

According to data from McKinsey, only 26 percent of leaders create psychological safety for their teams in 2024. 26 percent. 

That’s a little over a quarter of the workplace who feel safe enough to speak up and contribute, without fearing the impact it might have on their careers. 

And honestly, it’s not enough.

Unsurprisingly, other studies find that workplace burnout is getting worse, mental health is slumping, and most employees are disengaged from their jobs.

Psychological safety and employee wellbeing, productivity and engagement go hand in hand. You can’t have one without the other. And in today’s fast-paced, ever-evolving workplace, the ability to create an environment where team members feel safe to express themselves, learn, contribute, and challenge the status quo is crucial.

When I first started exploring the concept of psychological safety, it became clear that this wasn’t just another buzzword. Psychological safety is a powerful framework that, when implemented effectively, can transform the way teams collaborate, innovate, and grow. It really can revolutionize any single person’s individual life experience.

In this blog, I’ll summarize the four fundamental stages to psychological safety (as identified by LeaderFactor) and show you how these stages can be applied to your leadership journey. 

Whether you’re a seasoned manager or just stepping into a leadership role, these stages will equip you with the tools to create a culture where everyone can thrive. 

Let’s dive in!

Psychological safety: A quick definition

Psychological safety is a culture of rewarded vulnerability, where team members feel safe to take risks, express their ideas, and admit mistakes without fear of negative consequences.

A great example of psychological safety at work is often found during group ideation sessions. Whether it’s coming up with stories to take to market, or ideating new markets to enter to improve sales, there’s often always a team member or two who will hesitate to speak up in front of the group. Why? Because they’re unsure if their idea will be well-received. 

Ironically, it’s often those who are quietest that hold that spark plug idea that takes a project in a new direction. But overcoming this fear of speaking up takes a certain “feeling in the room” — you need to feel safe enough that you won’t be judged for your bad ideas. 

Here’s the thing about psychologically safe spaces, though — they don’t just happen. They require a dedicated commitment to creating a culture where everyone feels safe to contribute and knows that their input is valued, even if it’s not perfect. 

So, what are the four pillars of psychological safety? 

1. Inclusion Safety: Can you be your authentic self on your team?

Inclusion safety is the foundation of a truly connected team, where everyone feels valued for who they are.

It’s not just about fitting in but being celebrated for your individuality. When inclusion safety is strong, differences are embraced, and everyone feels they belong. However, when it’s lacking, cliques form, creating barriers that stifle authentic engagement, and it’s this authenticity that leads to smart ideas and powerful outcomes. 

To foster inclusion safety, make it a fundamental part of your organization. Practice things like active listening and respectful communication, and regularly express genuine gratitude for each team member's unique contributions.

2. Learner Safety: Do you have the freedom to explore and grow?

The key to learner safety is creating a space where individuals feel free to take risks and make mistakes. It’s by failing that we learn and grow, and team members need to fail without the fear of retribution. 

Instead, it’s important to foster a psychologically safe space where mistakes are celebrated. Sharing failures as learning opportunities lends itself to the Japanese mindset of Kaizen — a philosophical term meaning change for the better, or continuous improvement. 

When learner safety is absent, self-censorship and fear of failure can take root, stifling creativity. Instead, it’s up to managers and leaders like you to encourage a student mindset that embraces continuous learning and sharing mistakes. This way, everyone can feel comfortable on their own journey to growth.

3. Contributor Safety: Can you create value for your team?

Contributor safety is about offering team members autonomy to add value, while empowering them to bring their best ideas forward and make meaningful contributions.

A large part of contributor safety is accountability — if team members “own” their ideas and the projects they’re working on, they’ll work more passionately, think beyond their current role, and feel valued for their efforts and contributions to the business. 

At the core of contributor safety is recognizing achievements. Even small wins should be celebrated, as this fuels motivation and the idiom of continuous exploration. Without it, micromanagement and burnout can rule supreme, which creates a culture of disengagement and jaded cynicism. 

4. Challenger Safety: Do you feel like you can be candid about change?

When it comes to psychologically safe spaces, challenger safety is arguably the most difficult (and most important) pillar. This type of safety is all about creating an environment where questioning the status quo and proposing new ideas is not just accepted, but encouraged. 

Feeling free to challenge the status quo empowers teams to have open, candid discussions and iterate on ideas. And much like inclusion safety, it’s in openness that you find authenticity, and it’s authenticity that leads to innovative ideas. 

Building challenger safety requires you to respond constructively to disruptive ideas and bad news. Like any democracy, a healthy level of disagreement is a good thing — it shows that innovation thrives on diverse perspectives.

Where’s the proof that psychological safety has an ROI?

Good question — we knew you’d want the data. The positive news is that psychological safety has viable business cases behind it. 

Harvard Professor Amy C. Edmondson, one of the original thought leaders behind psychological safety, shares concrete examples of what happens (and what doesn’t happen) when psychological safety is present or missing in a workplace in her industry-leading book, The Fearless Organization.

In my opinion, the most powerful example she shares is the 2003 NASA Columbia disaster... 

The NASA example

On February 1, 2003, the space shuttle Columbia disintegrated upon reentry into Earth's atmosphere, tragically killing all seven astronauts on board. The incident led to a two-year suspension of space shuttle flights as investigators sought to uncover the cause.

First and foremost, we must honor the crew, including:

• Kalpana Chawla

• Rick D. Husband

• Laurel B. Clark

• Ilan Ramon

• David M. Brown

• William C. McCool

• Michael P. Anderson

The two-year investigation, led by the Columbia Accident Investigation Board (CAIB), revealed that a large piece of foam had fallen from the shuttle's external tank, damaging the spacecraft's wing — a problem NASA had been aware of for years. 

However, the root cause of the disaster extended beyond the physical damage. Edmondson emphasizes that a toxic organizational culture, marked by a lack of psychological safety, played a significant role.

The CAIB also noted that "cultural traits and organizational practices detrimental to safety were allowed to develop," citing an over-reliance on past success and significant barriers blocking the effective communication of safety concerns. 

Engineer Rodney Rocha, who had concerns about the foam strike, later admitted in an ABC interview, "I just shouldn’t do it [speak up in a meeting about the foam strike risk]. She [Senior Manager Linda Ham] was way up here [gestures with hand overhead], and I was way down here [gestures with low hand]."

This lack of challenger safety — where employees don’t feel safe to question the status quo — had, in this instance, catastrophic consequences. Quite simply, the absence of psychological safety didn't just lead to lost productivity or innovation; it resulted in the loss of life. 

This tragic example underscores the vital importance of creating a culture where every voice is heard, and where critical safety information is freely communicated without fear of reprisal.

Your roadmap to fostering psychological safety

Much like learner safety, fostering a psychologically safe workplace requires Kaizen — it is not a one-time checkbox exercise, but a continuous investment in each pillar in order to create a free and flexible culture themed on speaking up rather than shutting down.

By embracing inclusion, learner, contributor, and challenger safety, you empower your team to feel valued, explore new ideas, and contribute meaningfully to your organization. And it’s these three factors that help to reduce burnout, improve workplace mental wellbeing, and re-engage employees to contribute meaningfully to your organization. In the words of Steve Jobs: 

“If you do the right things on the top line, the bottom line will follow.”

To learn more about how Reframed Coaching can help you foster a culture of psychological safety, explore our Startup Manager Training cohort or connect with us today.