How Psychological Safety Shapes Mental Health and Performance at Work

Work isn’t just a way to earn a living. It shapes our identity, sense of purpose, and self-worth. A toxic workplace can slowly chip away at our confidence, mental health, and self-care. Over time, it leads to disengagement, absenteeism, and burnout. In contrast, a safe, supportive environment can help us thrive and reach our potential.

I know this from personal experience. Sadly, I’ve spent years in workplaces where the culture was anything but healthy.

One role in particular stands out. I was working as the Marketing Manager for a large corporation. From day one, the role was unclear. Just three weeks in, the manager who hired me resigned. I threw myself into the job, relying on my experience and intuition to build a strategy I believed would drive results.

Then my new boss arrived.

From the moment we met, I sensed he didn’t like me. In our very first meeting, he made his stance crystal clear:

 "If you underperform, I’ll micromanage. If you still underperform, I’ll push you out."

That sentence triggered deep anxiety.

I became afraid to speak up or ask questions. He regularly moved the goalposts, offered no guidance, and created a culture of fear. The opposite of psychological safety. 

I still remember the trade show I had project-managed from start to finish, something he had signed off on. He arrived, took one look, and yelled in front of a crowd: "What a waste of f*ing money!"**

At the time, I didn’t realise I was being bullied. But my self-worth plummeted. I cried most days, felt trapped and powerless, and questioned everything I did. The impact didn’t end at work. It followed me home. My sleep suffered. I stopped caring for myself. I used alcohol and food to numb how I felt. I was surviving, not living, and I didn't even realise it.

Why Mental Health at Work Matters

This experience highlighted something we don’t talk about enough: how we feel at work directly affects our mental health and performance.

It’s a double-edged sword. When we feel unsafe, unappreciated, or constantly criticised, our confidence erodes and so does our ability to function. I didn’t perform well in that job. In fact, I felt completely lost at times. And for a while, I blamed myself. But now I know better.

Toxic leadership doesn’t just make work unpleasant. It damages self-worth. My boss didn’t just create stress. He created fear. That fear stifled creativity, eroded motivation, and left no space for growth.

The Importance of Psychological Safety

Psychological safety is the belief that you can speak up, take risks, and make mistakes without fear of humiliation or punishment. It’s not a nice-to-have. It’s essential. According to Google’s Project Aristotle, psychological safety is the number one factor that sets high-performing teams apart.

Without it, people operate in survival mode. They second-guess themselves, hold back ideas, and become more focused on avoiding failure than contributing meaningfully. With it, people feel empowered, valued, and safe enough to do their best work.

What Needs to Change

We all have a role to play in creating healthier workplace cultures, whether we are business owners, leaders, or employees.

For organisations:
A toxic workplace is expensive. High turnover, burnout, and low engagement damage productivity and morale. Since 2018, mental health-related WorkCover claims in Australia have risen by nearly 40 percent. This is a clear indicator that work-related stress is on the rise. Businesses must prioritise mental health and invest in cultures where people feel safe and supported.

Download our free Psychosocial Hazards 101 Guide to learn the 4-step process recommended by Safe Work Australia, plus tips to take action with confidence.

For leaders:
Leadership sets the tone. Great leaders build trust, communicate clearly, and empower others. Ask yourself: Are you contributing to a culture of fear or a culture of growth? Your influence matters and it could change someone’s life. 

Not sure where to start? 

Download our free guide 5 Strategic Shifts to Build a Culture of Psychological Safety

This evidence-based resource is designed to help you begin building a workplace where people feel safe, valued, and supported, one small shift at a time.

For individuals:
If your job is harming your mental health, pause and ask: What is this really costing me? Sometimes, we are so used to being in survival mode that we don’t even realise we’re drowning. Reach out. Get support. Set boundaries. You deserve more than just pushing through.

Ready for a personal reset? Join a Balanced Elite Retreat

This Is Why I Created BRAVE™

The BRAVE™ framework was born from my own recovery. It’s designed to help high achievers prevent burnout by focusing on five essential pillars:
Boundaries, Rest, Authenticity, Vitality, and Empathy.

If I had these tools 12 years ago, I would have walked away before that job broke me. I would have seen the warning signs earlier. I would have chosen myself.
Explore the BRAVE™ 7-Day Reset Course 

Let’s Take How We Feel at Work Seriously

If your workplace is draining your energy, crushing your confidence, or making you feel unsafe, the problem is not you. It’s the environment.

So ask yourself:

‍Is my workplace supporting my wellbeing, or slowly breaking me down?

And if it’s the latter, what are you willing to do about it?