How Leaders Can Build Psychological Safety at Work in Canada

At a time when wellness is emphasized everywhere, why do people feel so unwell?  

Despite the growing focus on self-care, the mental health crisis is at an all-time high. Psychological safety in the workplace is often part of that gap, but it’s not always clearly understood.

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What is psychological safety at work?

At its core, it’s simple.

It’s the feeling that you can speak up, ask questions, share concerns, make a mistake or admit you’re struggling without fear of being embarrassed, dismissed or penalized for it.

And in today’s work environment, that matters more than ever.

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Why psychological safety matters more today

Today’s work environment comes with a different kind of pressure than it did even a few years ago.  

Many employees are balancing a lot, from tighter deadlines to ongoing organizational changes and hybrid workplace communication challenges. And that’s not mentioning all the other external forces, like global uncertainty, digital overload and ongoing stress.  

All of this can stretch teams thin. In that kind of environment, people often start filtering themselves. They may hesitate to ask questions, avoid raising concerns or hold back sharing new ideas.

When employees feel they need to carefully read the room before speaking, psychological safety becomes harder to maintain. And when that happens, the quality of work and collaboration often starts to suffer.

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Psychological safety in Canada: What the data shows

In Canada, more than two-thirds of employees say their workplace is psychologically safe. But nearly 1 in 4 say it’s not, and 9% are unsure, according to Mental Health Research Canada’s 2024 update based on more than 3,200 respondents.  

That gap shows that while many organizations are moving in the right direction, there’s still meaningful work to do.

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The role of leadership in psychological safety

Psychological safety isn’t created through company policies and guidelines alone. It’s really shaped by culture.  

And company culture shows up in how the organization operates and how employees experience their workplace every day. It’s reflected in how leaders respond to questions. How feedback is handled and how people are treated when they voice a different view.  

In other words, psychological safety is about creating the conditions for honesty, trust and better performance.

Because when people feel safe, they contribute more.  

The American Psychological Association found that workplaces with stronger psychological safety were linked to noticeably better employee outcomes: workers were more likely to say they can be their authentic selves at work, more likely to feel motivated to do their best and less likely to report harm to their mental health.

Employees tend to raise concerns earlier when they feel safe to share ideas more freely. They collaborate more openly. They’re not afraid to make mistakes and ask for help before a problem gets bigger.  

Without that sense of safety, the opposite tends to happen. People stay quiet, second-guess themselves and focus on protecting their image instead of doing their best work.

That silence can be costly.

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The cost of low psychological safety in the workplace

Low psychological safety doesn’t only affect culture. It has a measurable impact on performance too.

Mental health challenges can result in an average 36% loss of productivity and 11% absenteeism. Workplace stress also carries a significant financial impact. The costs of reduced productivity and missed work range from $5,500 to $28,500 per employee per year (Mental Health Research Canada).  

For some organizations, that adds up quickly.

Creating a more supportive workplace isn’t just the right thing to do. It also helps improve performance and retention.

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Creating a culture of psychological safety

A misconception is that creating psychological safety means tip-toeing around problems, lowering standards or avoiding difficult conversations.  

In reality, it’s the opposite.  

It’s about creating a foundation where people feel supported enough to have honest, respectful conversations, even when those conversations are challenging.

In practice, a culture of safety is created by small, consistent actions over time – those everyday moments that shape how people experience leadership.

That might look like a leader acknowledging pressure in a team meeting and checking in on priorities instead of pushing unrealistic deadlines. It could mean responding thoughtfully when someone raises a concern, rather than reacting defensively.  

It also means recognizing that not everyone processes pressure the same way. Strong leaders hold space through small, consistent behaviours that make it easier for everyone to speak openly.  

Regular one-on-one meetings are one of the best ways to build that trust. They give employees a consistent, predictable space to share feedback or concerns and to talk through challenges before they escalate. When leaders stay open and receptive, it reinforces trust and that speaking up is genuinely valued.  

In the workplace, these moments shape culture far more than most leaders realize. And more importantly, they have a positive impact on the overall performance and success of individuals.

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Practical ways leaders can support psychological safety

Psychological safety doesn’t require a large initiative to get started. In most organizations, it starts with small, consistent leadership habits that build trust over time.

Here are a few practical actions leaders can start thinking about now:

• Make one-on-ones a consistent priority so employees always have a reliable space to raise concerns and ask questions  

• Acknowledge pressure openly in team meetings and revisit priorities instead of assuming silence means everyone is managing fine  

• Respond calmly when mistakes happen and focus on learning and solutions rather than assigning blame  

• Recognize effort and progress regularly, not just outcomes, so employees feel seen and valued in their day-to-day work  

• Ask more open-ended questions like “What support would help here?” or “Is there anything we should be thinking about differently?” to encourage honest dialogue  

These actions may seem small on their own. But over time, they signal to employees that their voices matter and that leadership is paying attention to their experiences.

And that consistency is what builds real psychological safety.

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What psychological safety looks like in real conversations

Sometimes the simplest way to understand psychological safety is to look at how leaders respond in everyday situations.

These types of responses don’t remove accountability or expectations. Instead, they create space for honest conversations, early problem-solving and stronger collaboration.

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Final thoughts: Making psychological safety part of everyday leadership

Psychological safety is never a one-time initiative. It’s much bigger than that. And creating it requires intention, consistency and trust.

At a time when wellness is widely discussed, psychological safety is a tangible outcome that leaders can actively create through how they communicate, respond, support and show up for their teams every day. Creating space for honest conversations and thoughtful communication goes a long way.  

That’s why psychological safety matters so much right now. It bridges the gap between talking about wellness and actually creating workplaces where people want to contribute, collaborate and focus on meaningful work.

And in today’s work environment, that kind of leadership is essential for building strong, resilient and high-performing teams.  

Altis is a Canadian-owned staffing firm supporting organizations across the private and public sectors. We focus on relationship-driven recruitment, clear process and consistent delivery, helping employers hire with confidence and professionals build meaningful careers.