Why Psychologicsl safety is a strategic priority for a resilient organization

Psychological safety as a basis for resilience

Integrity - ethical business behaviour - improves financial performance; through innovation – through a team that generates and shares more ideas – improves profitability. And inclusion, that is, organizational diversity, predicts higher financial returns.

Integrity

Organizations with a developed culture of integrity do not sacrifice doing the right thing for short-term gains. Leaders empower their team members to make their own decisions that protect long-term resiliency. Early warning signs prevent bigger problems. In the last two years, more than half of workplace fraud tips came from employees. Honesty is expected to prevent, detect and address legal or ethical issues that could derail business.

The sooner leads are investigated, the sooner an organization can mitigate related losses. When employees at all levels feel safe to raise concerns, bullying and harassment can also be addressed in a timely manner.

Contradictorily, however, retaliation stigmatizes these employees. Employees without secure internal channels to report issues sometimes choose to speak out to the government or the media, threatening the resilience and reputation of organizations in multiple ways.

A climate of openness that allows problems to be addressed internally and in time, before the damage escalates, is always better.

Innovation

Product and process innovation are necessary elements for sustainable organizational performance. But in a rapidly changing world, the stress of uncertainty diminishes the drive and creativity to challenge existing paradigms.

Innovation tends to decline when external risk is perceived. Psychological safety helps counter that trend, fostering a culture of curiosity to generate new pathways and solutions.

?Inclusion

In the past year, two-thirds of people who left their jobs said they did so because they didn't feel included, valued, respected, trusted, or cared for. Nearly half of US employees are looking for other opportunities, and women are notably higher in this group.

Commitment and belonging are based on inclusion. The diversity of particular points of view in the human team of a company is essential to anticipate, face or adapt to risk or turbulent conditions.

A diverse team with psychological safety:

? has a broader knowledge base

? allows for better environmental scanning and

? generates a more complete risk analysis

? increases the range of proposed strategies

? leads to better decision making under threat

? exposes rich perspectives, latent concerns and novel suggestions