Workplaces today are a melting pot of different generations, with three quarters of firms reporting multigenerational workforces. But there is a say-do gap in how this diversity is accommodated for – and psychological safety is the key to plugging it.
Creating an environment where employees of all ages and backgrounds feel a sense of belonging is critical to retention. Psychological safety has emerged as a cardinal pillar in promoting an engaged workforce where everyone feels comfortable being themselves.
Psychological safety at work goes beyond lip service and one-off training sessions – it’s about continually nurturing a space where individuals feel secure in speaking up, without fear of punishment or ostracism.
In a landscape where talent spans multiple generations and backgrounds, mastering psychological safety is imperative for not just retaining a diverse range of employees, but also for empowering each of them to be the best version of themselves.
What does psychological safety mean?
Psychological safety is a culture where employees feel safe to voice their opinions, take risks and admit mistakes. In a psychologically safe environment, failure is seen as a learning opportunity, not a punishable offence, and this encourages open dialogue, greater innovation and better business performance.
“A good work environment is about the trust that you have among colleagues and managers. It’s about ensuring everyone has a voice and is heard.” Victoria McLean, CEO of Hanover | City CV
How does psychological safety impact workplace performance?
One in four organisations report that psychological safety is the top driver of employee retention. When employees feel safe, they’re more likely to be engaged, productive and satisfied with their job. In fact, psychologically safe workplaces are:
- 76% more engaged
- 50% more productive
- 74% less stressed
- 57% more collaborative
Harvard Business Review simultaneously found that teams with high psychological safety generate 50% more innovative ideas and achieve a 15% reduction in time-to-market for new products.
These findings prove that when employees feel that their contributions are valued and their voices heard, they’re more likely to feel connected to the company’s culture and less likely to disengage or leave. This is especially crucial for multigenerational workforces, where the unique needs of Baby Boomers, Gen X, Millennials and Gen Z must all be met.
Psychological safety means different things to different people
Different generations perceive and experience psychological safety in distinct ways. For example, younger generations place a greater emphasis on mental health support:
- 55% of Millennials and Gen Z access one-to-one counselling services at work
- Comparatively, only 38% of Gen X and 27% of Boomers use these services
- Job security is a more important priority for 42% of Boomers and 35% of Gen X
These differences underscore an important fact: psychological safety isn’t a one-size-fits-all, but a fluid and dynamic concept that must be constantly adapted to a teams’ unique make-up.
How psychological safety drives retention differently for each generation
Since psychological safety looks different for each generation, it makes sense that there are also nuances to how it retains talent. Understanding what different generations value is key to designing retention strategies that resonate with all employees.
For Boomers, psychological safety comes through being valued for their wealth of experience. A lack of internal mobility or opportunities to pass on their knowledge can, therefore, significantly harm retention, with 39% of Boomers citing this as a reason they quit.
Gen X also values stability and respect – but 79% feel forgotten in the workplace. As Gen X looks towards legacy-building, recognising their impact and giving them clear progression pathways becomes crucial to retaining this crucial talent pool.
89% of Millennials crave purpose at work, the freedom to innovate and, as they enter parenthood, flexibility. They’re more likely to stay in an organisation where they feel they can make a difference, challenge the status quo and have a voice in decision-making processes.
For the youngest generation, transparency, inclusivity and a healthy work-life balance are key to feeling psychologically safe. Gen Z expects a non-hierarchical, open culture where feedback flows freely, and 70% say having meaningful work matters more to them than salary.
Four practical strategies for building psychological safety across generations
To ensure psychological safety resonates with all generations, leadership practices, team dynamics and communication approaches must be tailored to foster trust and openness.
Here are four actionable steps that create a supportive environment for all employees
- Tailor leadership. Regular training on inclusive leadership can help managers recognise the diversity in their teams and adjust their communication styles accordingly. Encouraging leaders to solicit feedback from employees across all age groups will also enable them to better understand the psychological safety needs of their team.
- Encourage dialogue. Creating forums for open discussions, such as cross-generational mentoring programs or diversity and inclusion councils, can help break down generational barriers. These spaces allow employees to share their experiences, offer insights and learn from one another in a psychologically safe environment.
- Promote flexibility. While flexibility often implies remote working, it also means supporting different communication and work styles. Some employees may prefer face-to-face meetings, while others thrive in digital spaces. By accommodating different preferences, companies can ensure that employees feel comfortable engaging.
- Celebrate failures as learning opportunities. A key aspect of psychological safety is normalising mistakes. Leaders should model vulnerability by admitting their own failures and framing them as learning opportunities. This not only builds trust but also encourages employees to take calculated risks without fear of judgement.
Promoting mutual understanding to bridge generational gaps
Despite best efforts, misunderstandings are common in intergenerational teams, with 50% citing communication styles as the top challenge.
For instance, Boomers prefer communicating in a formal, face-to-face manner, with professionalism characterising their interactions. Younger generations prefer digital channels and typically communicate in a more candid style, which can feel jarring to older colleagues.
These communication gaps quickly erode psychological safety, leaving Boomers feeling dismissed and Gen Zers feeling uneasy – 1 in 5 Gen Zers haven’t had a direct conversation with someone over 50 at work, and 40% of over-55s haven’t engaged with Gen Zers either.
Bridging these gaps requires honest dialogue and mutual understanding. Companies must be vigilant in identifying areas where different generations are experiencing friction, and work to create an environment that meets the safety needs of everyone.
Practical ways to measure psychological safety and its impact on retention
- Regular employee engagement surveys, focussing on trust, risk-taking and openness in the workplace, provide valuable insights on how safe people feel. Questions should be designed to uncover how comfortable employees feel speaking up, whether they trust their leaders and if they believe mistakes are treated as learning opportunities
- Exit interviews, which track why employees leave, are essential to identifying psychological safety gaps. If recurring themes like feeling unsupported, undervalued or afraid to speak up appear, it’s a strong indicator that there are holes in your plan that need to be addressed
- Continuous feedback loops should be encouraged across all levels of the organisation. Leaders should regularly check in with teams, adjusting leadership styles and communication channels based on their needs. Employees should also have a secure way to provide feedback on their experience in the workplace
Psychological safety isn’t just a buzzword, it’s the linchpin of a thriving, multigenerational workforce where every individual feels valued, safe and empowered to contribute. Organisations that embrace it not only attract top talent but retain a workforce that collaborates, innovates and grows together.
How we can help
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