Psychological safety and negotiation play a crucial role in achieving successful outcomes. Freddy Burgess, a psychologist specializing in forensic, occupational, and human behaviour, explains how creating a supportive environment in which negotiators feel backed will generate the most effective results.
Psychological safety is a term that has gained significant attention in recent years, crossing over from the academic world of organizational psychology to a more mainstream audience. It seems to be occupying an important space in the current business zeitgeist. One might even predict that it will soon become a common reference point as people advocate for their rights in the workplace. But what exactly does psychological safety mean, and where did the concept originate?
The term “psychological safety” was widely agreed to have been coined by Edgar Schein and Warren Bennis in their paper “Personal and Organizational Change Through Group Methods: The Laboratory Approach.” In this paper, they defined psychological safety as a group’s effort to reduce interpersonal risk while increasing the individual’s sense of self and belonging. Extensive research has confirmed the benefits that psychological safety provides in terms of morale, performance, and creativity.
So, with that in mind, what does it mean to be a negotiator with, or without, psychological safety?
Every seasoned negotiator has felt it: that moment of indecision and uncertainty, and of wondering, what happens if I get this wrong? The reason that’s so common is because there are myriad scenarios that could bring this on: the negotiation may have taken an unexpected turn, the counterparty hasn’t responded in the way you expected, the total value of the deal is larger than you anticipated, or maybe you’ve received further information mid-way through the discussions. Any one of these scenarios can and do happen regularly when we’re negotiating, and that moment’s pause is arguably the sign of a responsible approach to negotiation.
The critical consideration from a negotiator’s point of view is what happens next: what happens after the moment comes? Well, that depends on one’s own psychological baseline and resilience at the time. To put it bluntly, you are either consciously and subconsciously safe, or unsafe, regardless of the outcome.
There are two clear physiological and psychological paths that will be followed at this point. Firstly, let’s assume we are psychologically unsafe. In this scenario we are unplanned, we have not aligned internally with stakeholders, we don’t feel empowered, and we may even be worried about returning with a poor result and the ramifications that will follow. When this moment occurs it creates a threat response which is similar to that produced in response to external influences that could cause us harm.
In these scenarios, our body reacts in a predictable manner. The threat response releases cortisol and adrenalin into our systems, with the adrenal glands reacting to our traditional impulse of fight or flight. Cortisol promotes the reinstatement of fear into our system, blood pumps faster, our amygdala increases in activity, and we are ready to fight, fly or freeze, depending on our psychological bent.
None of this is particularly beneficial for a negotiator – an instinctive emotional reaction could manifest as competitiveness or argument, deadlock, the inability to make a decision, or maybe even capitulation to the easiest point of agreement just to get out of the room. So, clearly not ideal.
But what about those that are psychologically safe? In this scenario, ample planning has gone into the negotiation. Not only that, but the negotiators are also secure in the knowledge they have the backing of their peers and organization, and that any mistakes will be embraced and learned from. A constructive review is part of the process and people are empowered to take responsible risks and encouraged to build creative, novel proposals. In this scenario, when that moment arrives and adrenaline is released, this time its accompanied by dopamine rather than cortisol. Dopamine enhances our recall and cognitive function and can improve focus, and even our willingness to make decisions. Rather than the instinctive emotional response, we have an instinctive cognitive one that allows us to manage that moment of uncertainty with calmness and thought, not emotion and panic.
Negotiators today are dealing with unprecedented socio-economic upheaval. The pressures they face are enormous, with resilience tested at every turn. Whether it is a buyer with mounting CPI requests, an account manager under pressure to manage prices while building sustainable products, or a procurement manager trying to mitigate energy costs, everyone is facing a challenging market. No matter the field or product, having a sense of psychological safety as a negotiator will not only foster a culture in which results are enhanced and negotiations are more efficient, it will also create a space that individuals want to be a part of during a period where employee satisfaction is hard to come by. And if you don’t have the luxury of such an environment? Without a sense of security when negotiating, you and your teams will be more hesitant, less creative, and less likely to gain positive outcomes.
The benefits of building an environment of psychological safety are clear, but in a time-poor, priority-heavy world, that’s easier said than done. But it’s easier to achieve with a shared purpose and culture of inclusivity and support, as well as an effective negotiation culture underpinned by trust with open dialogue, constructive feedback, and prioritization on preparation. This is exactly what The Gap Partnership helps to build with our partners.
For me, as the leader of a negotiation team, psychological safety is simple. It comes down to the unequivocal knowledge that you are prepared, and you are backed. If you want your negotiators to be more creative, more ambitious, and more effective, give them the armor of psychological safety and embed it throughout your negotiation culture.
Freddy Burgess is a psychologist specializing in forensic, occupational, and human behavior. Experienced in negotiation, sales, marketing, and operations. Currently leading Retail proposition at The Gap Partnership. Certified in psychometrics, coaching, and METT facial recognition. Advocate for empathetic leadership and mindfulness through martial arts.
