Why letting go of ego is your secret weapon in leadership
Keywords: leadership, resilience, psychologicalsafety, personalaccountability
Date: 12 February 2025, WorkLife Digital
Today’s business leaders are are expected to drive growth, maintain profitability, and steer their organisations through constant disruption all while projecting an image of confidence and success. But here’s the paradox: the more leaders cling to the need to appear infallible, the harder it becomes to foster the kind of open, collaborative culture that drives innovation and resilience. To truly thrive in this environment, leaders must model psychological safety - creating a workplace where employees feel they can speak up, challenge others or fail without risk of judgement. It’s not just a nice-to-have: it’s the foundation for navigating today’s challenges and building a future-ready organisation.
The business case for psychological safety
Research consistently links psychological safety to measurable organisational outcomes. Teams with high psychological safety see 76% higher engagement, 50% greater productivity, and 27% lower turnover compared to less psychologically safe environments. Google’s landmark “Project Aristotle” identified psychological safety as the most critical factor in high-performing teams, enabling risk-taking and knowledge-sharing that drive innovation.
For leaders balancing competing priorities - from AI adoption to multigenerational workforce dynamics - psychological safety acts as a multiplier. McKinsey found that organisations prioritising psychological safety are five times more likely to innovate effectively. This aligns with findings that psychologically safe teams are 67% more likely to apply new skills and 26% faster at learning. In an era where adaptability determines survival, these capabilities directly translate to competitive advantage.
Yet gaps persist: only 43% of employees report working in environments with strong psychological safety. This disconnect often stems from leadership behaviours. As the TIVC Institute notes, psychological safety starts with leaders who model vulnerability, actively seek diverse perspectives, and treat failures as learning opportunities.
Leading with vulnerability in high-pressure environments
The myth of the infallible leader is collapsing under modern pressures. Employees increasingly expect authenticity: 89% believe leaders must actively create psychologically safe workplaces. This requires discarding ego and embracing what Amy Edmondson calls “situational humility” - the willingness to say, “I don’t know, but let’s figure it out together.”
Practical strategies for leaders:
Normalise Imperfection
Share personal stories of failure and recovery. A CCL study found leaders who openly discuss mistakes increase team innovation by 33% by reducing fear of judgment.
Implement “failure debriefs” that focus on learnings and how to improve rather than blame.
Democratise decision-making
Solicit input from all levels. Gallup shows organisations where 6 in 10 employees feel heard see 12% higher productivity and 40% fewer safety incidents.
Use structured forums like “idea storms” to empower junior staff to contribute.
3. Reward candour, not compliance
Publicly recognise employees who voice dissenting opinions or concerns. McKinsey ties this practice to 74% lower stress levels and 29% higher life satisfaction.
Train managers to respond to challenges with curiosity (e.g., “Help me understand your perspective”) rather than defensiveness.
Integrating psychological safety into organisational DNA
Leaders must move beyond rhetoric to systemic change:
1. Align metrics with psychological safety
Track indicators like:
Frequency of cross-departmental collaboration
Employee willingness to report errors
Participation in innovation initiatives
Accenture’s research shows organisations linking these metrics to leadership KPIs achieve 5x higher innovation ROI.
2. Build inclusive communication channels
Replace top-down broadcasts with bidirectional platforms (e.g., anonymous feedback tools, rotating “shadow boards” of junior advisors).
Train leaders in supportive-challenging leadership—a style that combines high standards with empathy, boosting psychological safety by 54%
3. Invest in leadership development
Coaching programs focusing on self-awareness and inclusive behaviours improve psychological safety by 40%.
Simulations that expose leaders to scenarios of uncertainty (e.g., AI-driven market shifts) build comfort with ambiguity.
Sustaining growth through psychological safety
The payoff extends beyond morale. Psychologically safe organisations report 74% less stress and 57% higher collaboration rates, directly enhancing resilience during crises. Leaders who prioritise psychological safety create cultures where:
Employees spend 40% less time managing interpersonal conflicts.
87% of innovations originate from frontline staff.
As younger generations dominate the workforce - 73% of Gen Z prioritise psychological safety over salary - leaders who fail to adapt risk talent attrition and stagnation.
Embracing psychological safety isn’t soft leadership - it’s the smartest strategy for enduring success. It also mitigates the increasing pressures and stressors for leaders courageous enough to say, ‘I don’t have all the answers—let’s discover them together.’
WorkLife Digital is a global mental-wellbeing consultancy driven by the mission to improve the sustainability of businesses. Our psychological wellbeing tool, Worklife Quotient (WL-Q), is modelled on cutting-edge scientific research and provides organisation-wide measurement and intelligence on the mental wellbeing levels and psychological resilience of staff. WL-Q also assesses the impact of organisational practices (i.e. people and culture, leadership styles, organisational purpose and values, social impact) that have a direct influence on staff wellbeing and provides strategic recommendations on addressing risks and promoting strengths.
For more information, get in touch at lisa@worklife.digital
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REFERENCES
Clarke, E., Näswall, K., Masselot, A., & Malinen, S. (2024). Feeling safe to speak up: Leaders improving employee wellbeing through psychological safety. Economic and Industrial Democracy
https://hbr.org/2023/02/what-is-psychological-safety
Psychological safety and the critical role of leadership development McKinsey & Company 2021