Your ROI on Psychological Safety
Your ROI on Psychological Safety
Investing in Psychological Safety can yield significant financial returns.
Let’s look at the potential impact for a typical 10-person tech team in Europe with an average annual compensation of €35,000 per person.
Productivity Gains: €59,500 to €175,000 per year
Research shows that psychological safety can boost productivity by 17% to 50%. For our 10-person team, that equals:
- 17% boost: €35,000 x 0.17 x 10 = €59,500
- 50% boost: €35,000 x 0.50 x 10 = €175,000
Turnover Savings: €17,500 to €87,500 annually
Replacing a tech employee costs 50% to 250% of their annual salary. Building psychological safety can reduce turn-over by 50% reducing it from the 20% typical turn-over to 10%.
For a 10-person team that means retaining one more valuable employee:
- At 50% of salary: €35,000 x 0.50 x 1 = €17,500
- At 250% of salary: €35,000 x 2.50 x 1 = €87,500
Total Potential Benefit: €77,000 to €262,500 per year
The combined productivity gains and turnover cost savings for the 10-person team could total between €77,000 and €262,500 annually by implementing an effective psychological safety program.
Productivity + Retention Impact:
- €59,500 + €17,500 = €77,000
- €175,000 + €87,500 = €262,500
Additional Benefits of Higher Psychological Safety
Beyond the direct financial gains, psychological safety delivers:
- Higher employee engagement and wellbeing
- Increased innovation and creativity
- Improved collaboration and knowledge sharing
- Enhanced learning and skill development
- Better customer satisfaction scores
The Cost of Inaction
On the flip side, lacking psychological safety leads to:
- Stifled innovation and creativity
- Lower employee engagement and commitment
- Higher turnover and difficulty attracting talent
- Toxic work environment and team dysfunction
The price of neglecting psychological safety is high. Can you afford the lost productivity, turnover expenses, missed opportunities, and negative cultural impact?
Empower Your Teams
The evidence is clear – by investing in psychological safety initiatives, you unlock your people’s full potential. Empower them to take risks, collaborate openly, and drive innovation. The returns go straight to your bottom line.
Let’s talk about your project
Our Psychological Safety training and coaching programs are designed to transform your teams. We’ll work with you to cultivate a culture of trust and inclusion where every voice matters.
Embrace Change with Wisdom. In a world of constant change, let’s cultivate the human-centric skills your teams need to excel. Adaptability, resilience, and innovation are fueled by psychological safety.
We deliver training and coaching solutions that combine the power of science with ancient wisdom for extraordinary results. Let’s transform your workplace into one where people don’t want to leave, and competitors can’t copy.