Why Leaders Need to Give Employees Room to Fail

When we think about leadership, we often picture someone who’s decisive and always in control, ensuring things run smoothly. But real leadership goes beyond directing and deciding—it’s about creating an environment where people feel safe to take risks, make mistakes, and grow. In the Philippines, we have a unique workplace culture that highly values “hiya” (shame) and “pakikisama” (getting along with others), which often discourages employees from speaking up or taking risks out of fear of failure.

But allowing employees to fail is essential for growth, innovation, and resilience. As I’ve learned through my own leadership journey, when we give people room to fail, we’re opening the door for them to learn and become stronger. Here’s why giving your team room to fail is so important, with examples from local companies that have embraced this mindset.

1. Failure Fuels Innovation

When people are afraid to make mistakes, they stop taking risks. And without risks, there’s no room for real innovation. In the Philippines, many companies, like Globe Telecom, have made it a point to foster innovation by encouraging employees to think outside the box and take calculated risks. Globe’s “Fail Fast, Learn Fast” approach focuses on experimenting and iterating quickly, which is why they’ve consistently led in digital transformation and customer experience.

A study by Harvard Business Review found that companies embracing failure as part of the process were 18% more innovative than those with a more rigid, failure-averse culture. Encouraging employees to take risks, just like Globe does, opens up opportunities for creativity and innovation.

2. Failure Builds Resilience

Resilience is crucial for any successful employee, and it’s developed through overcoming challenges, not avoiding them. For example, Jollibee Foods Corporation faced multiple failures when it tried to expand into international markets. Yet, instead of backing away from these setbacks, Jollibee learned from them, adjusted its strategy, and is now one of the most successful Filipino fast-food chains worldwide.

Research from Stanford University shows that people who are encouraged to learn from their mistakes are 30% more likely to overcome future challenges. Like Jollibee, when employees are empowered to learn from their failures, they develop the resilience needed to succeed in the long run.

3. Failure Leads to Personal Growth

There’s a reason people say, “You learn more from failure than from success.” Here in the Philippines, companies like Ayala Corporation have embraced this mindset by investing in leadership development programs that encourage employees to take ownership of their growth, even if it means making mistakes along the way.

A study from the University of Chicago found that individuals who made mistakes and reflected on them improved their performance by 10-20% compared to those who didn’t experience failure. Ayala’s culture of continuous improvement, combined with a tolerance for calculated risks, has helped their employees become more effective decision-makers and problem solvers.

4. Failure Boosts Engagement and Retention

When employees feel safe to take risks without fear of punishment, they’re more engaged and committed to their work. A Gallup study found that employees in supportive environments are 41% less likely to leave their companies. This is something that’s been embraced by companies like PLDT, where employees are encouraged to take ownership of their projects and are given room to fail as part of the learning process.

This supportive culture has been key in retaining top talent, as employees feel valued and know their leaders trust them enough to grow through their mistakes.

5. Failure Strengthens Trust

Trust is the foundation of any strong team. When employees know they won’t be penalized for making mistakes, they feel safe to communicate openly, share ideas, and ask for help. Google’s Project Aristotle identified psychological safety as the most important factor in creating high-performing teams, and this principle is just as relevant here in the Philippines.

A local example is UnionBank of the Philippines, which has long been recognized for its strong digital transformation initiatives. The bank fosters a culture of trust and psychological safety, where employees are encouraged to experiment with new ideas, even if they don’t always work out. This has allowed them to stay ahead of the curve in a highly competitive industry.

How Leaders Can Encourage Growth Through Failure

Here are a few ways we can foster an environment where failure is seen as a step toward growth, drawing inspiration from these local examples:

1. Share Your Own Mistakes: Be open about your own failures and what you learned from them. When leaders at Jollibee openly talk about their international expansion struggles, it shows that even successful companies face setbacks, and that’s okay.
2. Encourage Experimentation: Make it clear to your team that they’re encouraged to try new things, just like Globe Telecom does with its “Fail Fast, Learn Fast” culture.
3. Celebrate Learning from Mistakes: Don’t just celebrate wins—celebrate the lessons learned from setbacks. At Ayala Corporation, leadership programs highlight how taking risks and learning from mistakes leads to personal and professional growth.
4. Provide Constructive Feedback: When mistakes happen, offer feedback and support, not blame. UnionBank’s leadership encourages their teams to reflect on failed projects and view them as opportunities to grow.
5. Create Psychological Safety: Like PLDT, ensure that your team knows they won’t be penalized for making honest mistakes. When people feel safe, they’re more likely to be innovative and engaged.

Final Thoughts

As leaders, our job isn’t just to guide people to success—it’s to support them through their failures as well. In the end, failure isn’t the opposite of success—it’s a necessary step toward it. By creating an environment where people feel safe to fail, we’re not just building better employees—we’re building a stronger, more resilient team.

Remember, when we give our people room to fail, we’re giving them the space to grow, learn, and ultimately succeed. That’s the kind of leadership that drives long-term success, whether in small teams or large corporations like Globe, Jollibee, or UnionBank.

#Leadership #PsychologicalSafety #GrowthMindset #FailForward #TeamBuilding #LearningThroughFailure