How to Build Psychological Safety in the Workplace

Workplaces in Canada continue to change. Employees are working in offices, from home, and in hybrid settings. Many employers focus on physical safety, but the mental and emotional environment is just as important.

Psychological safety, as defined by Harvard professor Amy Edmondson, is a shared belief held by members of a team that the team is safe for interpersonal risk taking. It is a key part of a healthy workplace. It involves how employees feel about speaking up and sharing ideas. This blog explains what psychological safety is and how it affects Canadian employers.

Why psychological safety matters for Canadian employers

Psychological safety means employees feel able to speak up, share ideas, and report mistakes without fear of punishment or negative consequences. When workers trust their workplace environment, they contribute more openly to team discussions and problem-solving.

Reduced legal and financial risk: Psychological safety lowers the chance of harassment complaints and wrongful dismissal claims. When employees feel safe to report concerns early, many issues get resolved before they become legal problems.

Higher engagement and retention: Teams with psychological safety see employees stay longer and participate more actively in workplace activities. These employees also refer quality candidates to the organization.

Stronger innovation and performance: When team members can admit mistakes and share concerns without fear, they help identify problems faster and suggest better solutions.

Canadian legal framework and the National Standard

The National Standard of Canada for Psychological Health and Safety in the Workplace, developed by the Mental Health Commission of Canada in collaboration with the CSA Group and launched in 2013, provides a voluntary framework for Canadian employers. This standard outlines how to create workplaces where mental health and psychological safety are protected.

Federal and provincial requirements

Occupational health and safety legislation in Canada requires employers to protect workers' overall health, including psychological health. While the National Standard is voluntary, following it helps employers meet their existing legal duties under provincial and federal workplace safety laws.

Recent developments in Canada

In recent years, provinces have strengthened protections. For example, Quebec's Bill 42, effective September 27, 2024, amends the Act respecting labour standards to enhance safeguards against psychological harassment and sexual violence in the workplace.

In Nova Scotia, new workplace harassment regulations effective September 1, 2025, explicitly recognize the impacts of harassment, bullying, and psychological harm, requiring employers to implement prevention plans and policies. Similar updates in other provinces, such as expansions to occupational health and safety definitions to include psychological well-being, underscore the growing legal emphasis on this area.

Employers should monitor jurisdiction-specific changes to ensure compliance.

The 13 organizational factors

The National Standard identifies 13 factors that affect psychological health and safety at work:

1.  Organizational culture: The shared values and practices that guide workplace behavior

2.  Psychological and social support: Help available from colleagues and supervisors for mental well-being

3. Clear leadership and expectations: Managers provide specific direction and regular feedback

4.  Civility and respect: All employees treat each other with dignity

5.  Psychological demands: Mental job requirements match each person's abilities and skills

6.  Growth and development: Opportunities exist for learning and advancing skills

7.   Recognition and reward: Good work and contributions receive acknowledgment

8.  Involvement and influence: Employees have input into decisions that affect their work

9.   Workload management: Job demands remain reasonable and achievable

10.  Engagement: Employees feel connected to their work and workplace mission

11.  Balance: Work schedules allow for personal life and recovery time

12.  Psychological protection: Systems prevent psychological harm at work

13.  Protection of physical safety: Measures prevent physical injuries and accidents

How to assess your current workplace

Assessment comes before making changes. You can't improve what you don't measure. Canadian employers can use several methods to understand their current psychological safety levels.

Employee surveys: Anonymous surveys collect honest feedback about whether staff feel comfortable speaking up or sharing ideas. These surveys often use rating scales and open-ended questions to capture different perspectives across departments.

Review existing data: Look at patterns in sick leave usage, voluntary turnover rates, and formal complaints. Exit interview feedback often reveals whether workplace culture influenced someone's decision to leave.

Psychosocial hazard analysis: This process identifies workplace conditions that could cause stress, anxiety, or other psychological harm. Common psychosocial hazards include unclear job expectations, excessive workloads, or lack of control over work tasks.

Building psychological safety in five steps

Canadian employers can follow a systematic approach to improve psychological safety. This process involves both leadership and employees working together.

Step 1: Secure leadership commitment

Senior leaders provide visible support by allocating resources and setting clear expectations for psychological safety. Leadership commitment includes establishing accountability measures that apply to all management levels.

Step 2: Form joint committees

Create committees with both management and employee representatives. These groups review assessment results and decide which workplace issues require immediate attention versus longer-term planning.

Step 3: Develop policies together

Write psychological health and safety policies with input from both managers and staff. Include specific timelines for implementation and describe how the workplace will address key concerns identified during assessment.

Step 4: Provide manager training

Train supervisors to recognize signs of psychological distress and respond appropriately. Training covers active listening techniques, how to receive feedback constructively, and when to refer employees to additional resources.

Step 5: Monitor and adjust

Regularly collect feedback from employees and review workplace data to track progress. Adjust policies and practices based on what you learn and changing workplace conditions.

Leadership behaviors that build trust

Managers shape psychological safety through their daily interactions with employees. Specific behaviors create environments where people feel comfortable sharing ideas and concerns.

Active listening: Focus completely on what employees are saying, ask follow-up questions, and avoid interrupting. When receiving feedback, respond without becoming defensive by acknowledging what you heard and thanking the person for speaking up.

Share your own mistakes: Talk openly about errors you've made and what you learned from them. This shows employees that making mistakes is part of learning and growth rather than something to hide.

Recognize employee input: Acknowledge ideas during meetings, implement suggestions when possible, and explain decisions when ideas can't move forward. This helps employees understand how their contributions are valued and considered.

Supporting remote and hybrid teams

Hybrid and remote work arrangements create unique challenges for psychological safety. Distributed teams rely heavily on technology for communication and may have different schedules and work environments.

Set clear boundaries: Establish specific work hours and response time expectations for emails and messages. Regular check-ins help managers understand workloads and make adjustments to prevent overwork.

Create inclusive virtual meetings: Send agendas in advance, use features like "raise hand" to manage participation, and ensure remote employees can contribute equally to discussions. Share meeting notes with those who cannot attend.

Prevent isolation: Schedule regular virtual team meetings and informal check-ins to keep remote employees connected. Use group chats or online forums for casual conversations that help maintain team relationships.

Measuring your progress

Track psychological safety improvements using specific metrics that provide clear data about workplace conditions.

Survey scores: Use validated instruments like the Guarding Minds at Work survey to measure employee perceptions. Repeat surveys at regular intervals to track changes over time.

Workplace data: Monitor voluntary turnover rates, sick leave patterns, and formal complaint numbers. Compare data from before and after implementing psychological safety measures to identify trends.

Exit interview themes: Review feedback from departing employees to understand whether workplace culture factors influenced their decision to leave.

Free resources for small businesses

Small and medium-sized Canadian businesses can access several no-cost tools to start building psychological safety.

The Mental Health Commission of Canada provides free policy templates that align with Canadian standards. These templates include sample language for workplace values, reporting procedures, and confidentiality measures. Additional free resources include an online implementation toolkit and case studies from organizations that have adopted the Standard.

Sample survey questions help gather employee feedback:

1.      "Do you feel comfortable speaking up about work concerns without fear of negative consequences?"

2.      "Is your workload manageable within regular work hours?"

3.      "Do you receive recognition for your contributions?"

4.      "Are you treated with respect by colleagues and supervisors?"

Manager training checklists should cover essential topics like recognizing signs of distress, responding to employee concerns, and referring staff to available mental health resources.

Get expert support for your workplace

Peninsula provides HR and health and safety services specifically designed for Canadian employers. Our certified experts understand provincial and federal requirements related to psychological health and safety in the workplace.

Peninsula's 24/7 advisory services include policy development, manager training, and ongoing compliance support. We help small and medium-sized businesses implement psychological safety measures while managing other HR and workplace safety requirements.

For guidance on psychological safety policies, training programs, or specific workplace situations, call a Peninsula expert today at (1) 833-247-3652.