Consider your organization’s attitude toward “failures,” “mistakes,” and “missteps.” What comes to mind first — are they seen as setbacks or stepping stones? For many workplaces, these concepts carry a negative weight—a common perception that often stifles growth and limits learning opportunities. When mistakes are treated with blame, it signals lower levels of psychological safety, discouraging employees from sharing valuable learning experiences. However, a learning-oriented workplace that encourages openness, and sees failure as part of growth, ultimately driving productivity, innovation, and adaptability.

A culture that values learning invests in employee development, which improves efficiency, effectiveness, and work quality. Employees who feel safe to explore and make mistakes in their learning journey are more engaged, motivated, and committed to their roles. This supportive environment fosters adaptability, as employees are empowered to bring fresh perspectives to tasks and challenges, ultimately boosting productivity.

Fostering psychological safety is crucial for a learning-driven culture. Amy C. Edmondson’s research* highlights a common yet troubling gap in how organizations perceive failure: when executives estimated the percentage of blameworthy failures, they cited only “2% to 5%” of incidents; yet, when asked how many failures were treated as blameworthy, the response ranged from “70% to 90%” (Edmondson, 2011). This discrepancy often leads to unreported failures, and valuable lessons go unlearned. In a truly growth-oriented culture, however, employees can learn from setbacks without fear of blame, transforming failures into valuable stepping stones for both individual and organizational development.

To create a psychologically safe environment, it’s essential to focus on understanding what happened rather than on who was at fault. Shifting this focus during “after-event reviews” helps emphasize improvement rather than blame, making employees more comfortable discussing missteps. Leaders play a vital role here by modeling vulnerability—openly sharing their own mistakes and encouraging honest communication.

Providing constructive, future-oriented feedback during these sessions and throughout regular workdays fosters growth without dwelling on past actions. Celebrating efforts and acknowledging “small wins” along the way also reinforces support, helping employees feel valued for their progress rather than just their end results.

By implementing these strategies, leaders can establish a culture of psychological safety that promotes continuous learning and adaptability. When employees feel secure enough to take risks, share ideas, and admit mistakes, the organization as a whole becomes more resilient and growth-oriented.

Have questions on how to transform your organization’s approach to embracing failure and creating a psychologically safe environment? Give us a shout and we’d love to help.

Written by Kenzie Brand, SHRM-CP, Senior Human Capital Consultant at The Encompass Group

*Edmondson, A. C. (2011). Strategies for learning from failure. Harvard Business Review. Retrieved from https://hbr.org/2011/04/strategies-for-learning-from-failure