4 minutes
Psychological Safety in Action
Credit unions were born from bold ideas and brave collaboration. Yet, for all our innovation in products and purpose, there’s a quieter kind of courage we’re being called to now: the courage to create environments where people feel safe to speak up, show up, and sometimes, even break down.
What Psychological Safety Really Means
Popularized by Harvard researcher Amy Edmondson and expanded by Dr. Timothy R. Clark, psychological safety is the shared belief that a team is safe for interpersonal risk-taking. In practical terms, it means employees can raise concerns, admit mistakes, and offer ideas without fear of embarrassment, rejection, or retaliation. It is a cornerstone for fostering authentic inclusion and engagement within credit unions; this is especially vital in cooperative cultures grounded in trust, mutual respect, and shared mission.
When the Stakes Are High, Culture Speaks Loudest
Earlier this year, TwinStar Credit Union faced a high-pressure moment—a core conversion. As many of us know, these transitions are known for sleepless nights, long hours, and tight nerves. But what happened inside TwinStar told a deeper story about their culture.
They launched a virtual “Care and Connect Lounge,” open all day during the conversion week. Some employees joined to cry. Others to quietly decompress. Some just wanted to feel less alone. It was a simple space—not for fixing, but for being. As the week unfolded, the lounge reflected the values many credit unions uphold: creating a safe place where people can be real, even in messy moments.
That initiative wasn’t a one-off. TwinStar has committed to building psychological safety into their leadership strategy by embracing Dr. Clark’s Four Stages of Psychological Safety:
- Inclusion Safety: Welcoming spaces and intentional listening
- Learner Safety: Encouraging questions and seeing mistakes as growth
- Contributor Safety: Shared ownership of projects and decisions
- Challenger Safety: Brave spaces to challenge norms without fear
Their efforts show that even in moments of organizational strain, culture can strengthen trust and resilience amongst employees and positively trickle down to the member experience at every level.
Leaders Learn Out Loud
At Civic Federal Credit Union, CEO Dwayne Naylor is the first to say he’s still learning—and perhaps that’s the most powerful example of all.
During a CU Pride BGHH Networking session—a monthly educational and social happy hour—Naylor shared a moment when an employee respectfully called him out in the session.
He recalled, “I said something like, ‘You’re reacting emotionally,’ and a woman said to me, ‘You don’t use that [phrase] with guys.’ Then someone else added, ‘You used it with me two years ago.’ That was a learning moment. I’m still learning.”
It wasn’t performative. It was real. And it reflected a leadership style that is deeply human and humble. He invited feedback and made it clear that it wasn’t a threat, but a gift.
Naylor went on to say, “Let them flourish. Let them make mistakes. Let go of the control. That is the only way this organization has moved this fast.”
Civic FCU is proving that psychological safety doesn’t mean lowering standards. It means unlocking speed, creativity, and trust—exactly what credit unions need to stay relevant and resilient.
Where the Movement Can Lead
Psychological safety is a must-have leadership skill, a cultural condition, and in many ways, a measure of our maturity as a movement.
For credit unions that have long championed the mantra of “people helping people,” this is a return to our roots. But this time, the work starts within. It means checking our language, inviting feedback, and building structures where safety is more than an intention—it’s a shared experience.
Here are a few ways to begin:
- Model vulnerability: Admit when you’re wrong. Ask for feedback. Show that learning is part of leadership.
- Create space: Carve out room for decompression, dialogue, and deep listening—especially during high-stress times.
- Celebrate progress, not perfection: Reward risk-taking and the lessons that come from failure.
- Anchor inclusion in practice: Make it a habit to check who’s speaking, who’s being heard, and who’s being overlooked.
Soft Skills are the Hardest to Master
Psychological safety is more than just a leadership skill. It’s the quiet power that allows people to bring their full selves to the table, and it’s the spark that turns diverse teams into high-performing teams. When our cultures are safe, our missions can be bold, and our purpose shines brighter.
