Editor’s Note: This article was originally published on WRAL. Bob Batchelor is vice president, global marketing and communications at Raleigh-based Workplace Options. He recently authored the book, “The Authentic Leader: The Power of Deep Leadership in Work and Life.” He and Donald sat down for a wide-ranging conversation on one of the corporate world’s most important issues.
Bob Batchelor: Don, we’re at a time when people feel more divided, more uncertain, and in many cases, more isolated than ever. Businesses, oddly enough, are now seen as one of the last institutions people actually trust. How do leaders navigate that responsibility?
Donald Thompson: It’s an incredible shift, and it means that leaders have to step up in ways they never have before. According to the 2024 Edelman Trust Barometer, employees trust their employers more than the media, the government — pretty much any traditional institution. That puts business leaders in a unique position to foster connection, reduce fear and create work environments where people can actually thrive.
And let’s be clear — this isn’t just about “doing the right thing.” Psychological safety directly impacts performance. The best teams — the most innovative, the most collaborative — aren’t just the ones with the best talent; they are those where people feel safe enough to bring their best ideas forward.
Bob: Let’s dig into that. Psychological safety is a term people hear a lot, but what does it actually look like in practice?
Donald: At its essence, psychological safety means people aren’t afraid to speak up, make mistakes or challenge ideas at work. It means employees trust that their contributions will be valued, not dismissed or ridiculed.
The research backs this up in a big way. Google’s Project Aristotle found that psychological safety was the single most important factor in high-performing teams. And when leaders get it right, it has an important multiplier effect, essentially boosting dependability, clarity, meaning and impact.
Think about it like this: The teams that take the biggest swings — the ones that solve the toughest challenges — are the ones that feel safe enough to take risks. No one wants to put themselves out there in front of their coworkers and manager if they think they will get shut down or punished for it.
Bob: Okay, so that’s the ideal scenario, but most leaders are dealing with the reality of polarized workplaces, anxious employees and teams spread across different locations. Based on remote work, they have some teammates they’ve never even met in person before. What’s the first step for leaders trying to build psychological safety?
Donald: Vulnerability. Period.
If you want a culture where people feel safe, you, as a leader, have to go first. What I mean by this is that an executive has to have higher-order self-awareness. They have to be honest about what they don’t know, admit when they make mistakes and ask for input from the entire team. People don’t expect leaders to be perfect. However, their teams do expect them to be real.
An executive should never underestimate the power of role modeling behavior. When leaders are open, it creates space for everyone else to do the same. It shifts the dynamic from “protect yourself” to “let’s solve problems together, faster.”
Bob: That is a huge mindset shift. What would you say to leaders who counter with: “We’re running a business, not a therapy session?”
Donald: I hear that all the time. My response is simple: Psychological safety is about performance, not just well-being. When employees feel safe, they contribute more, collaborate better and drive results. They also act as ambassadors for your brand and don’t want to take all their knowledge and experience to your competitors. The value in terms of employee retention and brand value should never be overlooked.
Companies are already dealing with the costs of not addressing this: high turnover, low engagement and burned-out teams. An executive can’t afford not to focus on it.
Bob Batchelor: So, let’s turn to solutions. If I’m a CEO or senior executive and I want to move my organization toward a more psychologically safe culture, what’s my playbook?
Donald Thompson: Here’s what I tell the executives I coach and the leadership teams I work with when they ask how to make an impact:
Model the behavior you want to see: If you want open communication, ask questions and listen. If you want honesty, admit when you’re wrong. We understand that culture starts at the top, but it is easy to dismiss in the hustle and bustle of daily challenges.
Make inclusion non-negotiable: When employees know their perspectives are valued — regardless of background, role, or seniority — they feel safer contributing. This is the magical place where innovation, creativity and collaboration happen.
Reward constructive debate: Challenge employees to question assumptions, push boundaries and bring new ideas. Then, when they do, reward them for it. If no one on your team ever disagrees with you, you have a bigger problem.
Invest in well-being: Psychological safety and mental health go hand-in-hand. That means prioritizing work-life situations. Most employees have resources at hand, like the EAP program and stress management tools. Leaders need to normalize well-being conversations.
Create a feedback culture: Employees need to know that giving honest feedback won’t backfire. When leaders encourage and act on feedback, it builds trust and drives better decision-making.
Bob: What I like about that answer, Donald, is that it is applicable right away. And, it is both human and practical. Let’s zoom out, though. The world is in flux. The workplace is often chaotic. What’s your message to leaders who feel overwhelmed by all of this?
Donald: The best leaders adapt. Psychological safety is no longer a “nice-to-have” part of organizational culture. What I see here is a critical business essential. Leaders who understand how significant psychological safety is will soon distance themselves from the competition in the knowledge race we all face. The issue could be what separates the companies that survive from the ones that thrive.
I tell the executives I speak with that psychological safety is about authentic leadership. Leaders who embrace psychological safety will build workplaces where people don’t just show up, but show up as their best selves and ready to solve the organization’s most pressing challenges. This is how leaders and businesses win–by creating engaged, innovative resilient teams.
For more on psychological safety and its impact on workforce effectiveness, explore the 2025 Psychological Safety Study from Workplace Options and the WPO Centre for Organizational Effectiveness. The study is based on real, anonymized conversations between employees and clinicians across 18 countries. This human-centered approach uncovers the emotions, fears, and challenges employees are feeling — providing business leaders with real insights to drive meaningful change.
About the Author
Donald Thompson, EY Entrepreneur Of The Year® 2023 SE Award-winner, founded The Diversity Movement, a Workplace Options Company, to fundamentally transform the modern workplace through diversity-led culture change. Recognized by Inc., Fast Company and Forbes, Thompson is author of Underestimated: A CEO’s Unlikely Path to Success, hosts the podcast “High Octane Leadership in an Empathetic World” and has published widely on leadership and the executive mindset. His new book is The Inclusive Leadership Handbook: Balancing People and Performance for Sustainable Growth, co-authored with Kurt Merriweather, Vice President of Marketing and Innovation at The Diversity Movement. Follow Thompson on LinkedIn for updates on news, events and his podcast.