How to build psychological safety amid employee anxiety in a changing workplace
According to Mercer’s 2024 Global Talent Trends (GTT) Study, 41% of executives in Asia are planning to significantly increase their investments in artificial intelligence (AI) to drive long-term sustainability. But without a concerted effort to tackle employees’ tech anxieties, employers will struggle to maintain trust with their workforces and reap the rewards of AI.
Two-thirds of executives in Asia anticipate productivity gains of at least 21% with the help of AI and new tech.¹
However, it is crucial for leading employers to recognise that successful implementation of new technology is not solely about the technology itself, but also about fostering a harmonious relationship between employees and AI. Surprisingly, only 27% of employees in Asia expect AI to improve their job performance in the next three years, indicating that the majority remain unconvinced of AI's positive impact.
This distrust goes deeper, with the majority of employees in Asia (more than 60% in Thailand, Malaysia and Indonesia) believing AI will replace their jobs in the next five years². Yet 68% of executives in Asia believe organisations have a responsibility to protect their employees from being replaced by technology or AI, and only one in five executives plans to reduce their workforce in 2024 (compared to one in four in 2022) — in other words, it’s jobs that should be made redundant, not people.
Bridging the gap between leaders and employees requires a comprehensive approach that ensures employees embrace the potential benefits of AI, while also equipping them with the necessary skills and knowledge to work alongside new technologies in a safe and thoughtful manner. By doing so, organisations can address underlying insecurities in the workforce, strengthen trust, and foster a culture of psychological safety.
Fostering a psychologically safe workplace supports employees’ sense of thriving
When psychological safety is high, employees feel valued, respected and supported at work, and they are more likely to engage, collaborate and contribute to their fullest potential. Psychological safety encompasses how secure employees feel in raising concerns, admitting mistakes or sharing new ideas, all of which are essential factors for successful risk management and mitigation in the age of AI. In turn, psychological safety plays a crucial role in cultivating a high-performing workplace and driving a digital-first culture where people can thrive — an organisation that’s adaptive and digitally fluent.
With this in mind, what can companies do to create a psychologically safe culture that allows employees to thrive in an AI-driven world?
Three ways employers can build psychological safety in the workplace
What employers can do
- Empower employees to embrace change by actively involving them in digital transformation initiatives, encouraging them to provide feedback and contribute ideas to shape a human-centred digital culture.
- Determine which tasks can be automated or taken on by AI so employees can focus on higher-value work that brings their creativity and critical thinking to the fore. Redesign jobs so work is meaningful and leverages the strengths of both humans and AI and rethink the critical skills the organisation needs now and in the future.
- Upskill or reskill employees so they not only feel comfortable with using AI in their day-to-day work but also see the potential for new career opportunities arising from more agile business models.
Although some research suggests AI will level the playing field, other sources speculate that it will deepen inequalities. It’s no surprise that on average, women are more wary of AI than men. Improving psychological safety for successful human–machine teaming is one thing, but how can businesses use AI ethically to improve outcomes for different employee groups? And, in the spirit of building trust, how can they be transparent about their progress?
The Mercer Asia Norms Report also found that gender pay gaps are a prevalent issue in Asia, with women in the region earning less than their male counterparts. According to Mercer’s 2023 Remuneration Survey, in countries such as Thailand, Malaysia and Japan, for every US$1 a man makes, a woman is paid US$0.80 for the same job.
At the same time, women may also find it more challenging to access leadership networks and get tangible support to climb the corporate ladder. Despite an almost one-to-one male-to-female ratio in the workplace, only 30% of women hold leadership positions in Asia.
What employers can do
- Conduct regular pay equity analyses to identify and address gender pay gaps or inequalities. Review and standardise compensation practices and pay data across roles by analysing data, job descriptions and market benchmarks.
- Implement transparent pay structures and policies to clarify compensation decisions, including guidelines for performance evaluations, promotions and salary increases. Our consultants can help you establish objective criteria to help remove bias within these processes
. - Improve equal opportunities for career development by matching employees’ skills with relevant internal opportunities with the help of an internal talent marketplace.
Today, we see organisation focusing on key engagement themes such as learning and development, employee well-being and manager support to enable performance, a shift away from traditional engagement metrics such as alignment to organisational goals.
What employers can do
- Open communication channels and encourage discussion and healthy debate around AI to establish a “safe space” for education and learning. New technology-driven solutions may even arise from these conversations.
- Measure employee satisfaction, motivation and alignment with organisational goals by capturing feedback in employee engagement surveys that can feed into the future design of the employee experience. Firms should leverage insights gained through employee listening and feedback to enhance the employee experience and foster a culture of belonging, redesigning the “moments that matter.”
- Surface employee perspectives and experiences with focus groups and interviews to identify actionable insights. Keep track of key trends, such as why people stay and leave. It’s worth keeping in mind that Mercer’s data show the top three reasons individuals in Asia stay with their employers are job security, fair pay and positive work culture. Therefore, employee experience must remain a top priority.
- Dive deep into employee feedback patterns and sentiments across different employee groups by leveraging data analysis and digital tools to understand what matters most to workers and make data-driven decisions.
Building psychological safety in the workplace starts with the right tools
By considering the steps above, organisations can foster a psychologically safe workplace where employees feel valued, respected and supported. This will not only drive a high-performing workplace but also cultivate a culture of trust and collaboration that enables employees to thrive in an AI-driven world.
Organisations across Asia can benefit from effective employee engagement strategies, listening tools, assessment and strategic workforce planning; skills-based talent practices; transparent communication; and employee-driven change management.