What is the link between Psychosocial Safety Climate and organisational outcomes?

Psychosocial safety climate (PSC) refers to an organisation’s climate around employee psychological safety and wellbeing, shaped by senior management’s beliefs, values, and practices. Organisations with high PSC prioritise psychological health, actively prevent workplace stress, foster open communication about mental health, and engage employees in shaping relevant policies. A growing amount of research demonstrates that high PSC environments promote better working conditions, job quality, and, in turn, improved employee mental health and wellbeing. Conceptually, these improvements are believed to have benefits for the organisation through improved productivity and performance related outcomes. However, to date limited research has sought to bring together and critically evaluate the existing evidence base exploring this link between PSC and organisational outcomes. This state-of-the-art review aims to address this key gap in knowledge.