• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs

2

Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998

3

Economists have found an answer to slowing cognitive decline: Avoid retiring early, study finds

1

Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs

2

Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998

3

Economists have found an answer to slowing cognitive decline: Avoid retiring early, study finds
SuccessWorkplace Culture

If you make your employees feel too comfortable, they just won’t work as hard, study suggests

By
Jane Thier
Jane Thier
Down Arrow Button Icon
By
Jane Thier
Jane Thier
Down Arrow Button Icon
October 19, 2023, 3:47 PM ET
When everyone is held accountable for each decision or action, good or bad, performance picks back up.
When everyone is held accountable for each decision or action, good or bad, performance picks back up.Maskot/Getty Images
Add Fortune on Google for similar content.

Feeling comfortable, safe, and supported in the workplace has long been heralded as a nonnegotiable, especially among younger workers. It’s a concept known as “psychological safety,” which is simply about avoiding interpersonal harm at work—like feeling confident taking risks or admitting when you don’t know the answer—without worrying you’ll be judged or disparaged. 

Recommended Video

“It doesn’t mean there aren’t consequences, it just means you won’t be made fun of, teased, or made to feel bad personally,” Peter Cappelli, a management professor at the Wharton School at the University of Pennsylvania, tells Fortune. “It’s hard to make an argument that that’s ever a good thing.”

But, it turns out, being too soft might actually be a bad thing.

The case for psychological safety, Cappelli has found, is “a lot narrower” than most would expect, especially given the recent emphasis on belonging and comfort at work. But work is, ultimately, a business, and the psychological safety of a “no bad ideas” culture might confuse people into thinking poor performance carries no consequences, he says.

Over the summer, he published research on the topic with Tel Aviv University management professors Liat Eldor and Michal Hodor. The three drew on cognitive psychology data and found that employees’ feelings of comfort and safety in creative jobs can lead to dampened performance in routine tasks. 

In the published paper, he defined these feelings of “psychological safety” as the “shared belief that one is free to take interpersonal risks on a team—such as asking for help or revealing mistakes—without any resulting negative consequences.” But companies tend to take it too far when they leave employees without any feeling of responsibility for poor work.

While “moderately” psychologically safe workplaces are linked to better routine task performance, the study authors note, “highly” psychologically safe workplaces are linked to decreased performance. In one analysis of 474 knowledge workers, they found that high levels of psychological safety were correlated with better performance—only up to a point, the 80th percentile. Beyond that, employee performance falters. 

With routine tasks, a highly psychologically safe culture can harm in-role performance because “it distracts employees from their core tasks first by focusing their attention on more novel tasks, and second by encouraging them to push boundaries in routine tasks where doing so is counterproductive,” the researchers wrote. 

What’s the solution? Collective accountability—when everyone is held accountable for each decision or action, good or bad, performance picks back up. 

Hurt feelings are the cost of doing business

Despite the shock value, the claim, Cappelli says, is pretty modest. “Jobs that require you to take risks—which is where creativity comes from—can stifle people if they feel you’ll make them feel bad for making mistakes, coming up with ideas that don’t work out, or that initially sound stupid.” 

What people misunderstand is the idea that anything that would make someone feel bad is psychologically unsafe—which is completely unsustainable for any worker.  

“Could you imagine a context where you give someone a bad performance appraisal and they don’t feel interpersonal harm?” he offers. “Or you say, ‘We have to fire you, I’m sorry, but don’t take it hard?’ Real consequences of particularly poor performance will inevitably create some sense of lack of psychological safety, which is why you can’t drive it to 100%. You need consequences with real teeth.”

But there are dangers of going too far on either end. “The idea of making people feel interpersonally bad as a strategy is a bad idea,” he says. “But the idea that there could be no bad feelings at all is a fool’s errand.”

That means the key is not to hand-wring over the details so much as strike a good balance: Don’t coddle workers, but don’t disparage their efforts, either. And managers—who have enough to deal with—need not get bogged down with anxiety about toeing the line between safe and unsafe, Cappelli says.

“With most jobs, it’s probably not that big a deal, unless you’re constantly making people feel that they’ll be mocked or made fun of or interpersonally harmed,” he says. “That’s just not the way you should ever manage.” 

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.
About the Author
By Jane Thier
LinkedIn iconTwitter icon
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Success

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Success

Ejay O'Donnell, Bart Szaniewski, and Grant Eastey wear Dad Gang hats in a factory
SuccessEntrepreneurship
Three dads started selling hats from a garage with $750—now they’ve sold $35 million worth, partnered with Gary Vee, and grown a community of fathers
By Preston ForeJuly 4, 2026
1 hour ago
loco
Travel & LeisureEntrepreneurship
The World Cup is just now discovering Middle America’s big heart. These Irish bingo kingpins built a $24 million business knowing it all along
By Nick LichtenbergJuly 4, 2026
2 hours ago
Elon Musk with a black DOGE hat
SuccessWealth
Even as Elon Musk calls philanthropy ‘very hard,’ every day Americans gave a record $617 billion—despite feeling the squeeze over the cost of living
By Preston ForeJuly 4, 2026
4 hours ago
‘It’s just his AI and my AI going back and forth’: The workplace phenomenon that’s undermining human relationships
Future of WorkWorkforce
‘It’s just his AI and my AI going back and forth’: The workplace phenomenon that’s undermining human relationships
By Jacqueline MunisJuly 3, 2026
20 hours ago
Chad Hurley and Steven Chen wearing suits
SuccessWealth
YouTube’s founders split over $650 million when they sold to Google in 2006—had they held out, they could have taken a slice of $550 billion
By Preston ForeJuly 3, 2026
20 hours ago
2
Commentary250 Years of Innovation
America’s secret weapon isn’t just innovation — It’s the freedom to fail
By Keith KrachJuly 3, 2026
1 day ago

Most Popular

Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
Law
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
By Wyatte Grantham-Philips and The Associated PressJuly 2, 2026
2 days ago
Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998
AI
Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998
By Nick LichtenbergJuly 3, 2026
1 day ago
Economists have found an answer to slowing cognitive decline: Avoid retiring early, study finds
Economy
Economists have found an answer to slowing cognitive decline: Avoid retiring early, study finds
By Sasha RogelbergJuly 2, 2026
2 days ago
On Wall Street, analysts increasingly don’t believe the U.S. government’s 'misleading' job numbers
Economy
On Wall Street, analysts increasingly don’t believe the U.S. government’s 'misleading' job numbers
By Jim EdwardsJuly 3, 2026
24 hours ago
$25 billion CEO says one-hour interviews are a waste of time—he puts candidates through six hours of tests and wants them to order wine at lunch
Success
$25 billion CEO says one-hour interviews are a waste of time—he puts candidates through six hours of tests and wants them to order wine at lunch
By Orianna Rosa RoyleJuly 3, 2026
1 day ago
In Iran, regime officials who survived the war intended to kill them appear in public for dayslong funeral of the late Supreme Leader Khamenei
Politics
In Iran, regime officials who survived the war intended to kill them appear in public for dayslong funeral of the late Supreme Leader Khamenei
By Nasser Karimi, Jon Gambrell and The Associated PressJuly 3, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.