In conversation with Elizabeth Hyde: Why Psychological Safety matters for legal & compliance teams

Hesper GRC partner with clients to enhance psychological safety within their teams and organisations. Their mission is clear: to unleash the potential of teams, driving innovation, encouraging growth, and supporting governance, risk, and compliance functions along the way. At Hesper, psychological safety is seen as a catalyst for growth - a foundation that enables teams to innovate, collaborate, and perform at their best.

Founded by Elizabeth Hyde, Hesper GRC brings a unique perspective. Elizabeth spent 17 years as a corporate criminal defence lawyer in a top-tier international law firm before following her passion and specialising in psychology. Her work focuses on embedding psychological safety and leader behavioural integrity into organisational culture; because when people feel safe to speak up, businesses make better decisions, reduce risk, and unlock innovation.

Gill Raw sat down with Elizabeth to discuss why Psychological Safety matters for legal & compliance teams.

–

Gill: Some people say psychological safety is just the latest corporate buzzword. Is it really that important, or is it a fad?

Elizabeth: I understand the scepticism, Gill – organisations are exposed to a steady stream of ‘new ideas’. But psychological safety isn’t new. It’s one of the most well-researched predictors of organisational performance and risk resilience. For those who are new to the concept, psychological safety is about creating an environment where people feel safe to speak up with ideas, questions, concerns, or admit mistakes without fear of blame or negative consequences (Edmondson, A, Harvard Business School).

Across multiple industries, including highly regulated environments, we’re seeing the same pattern: when employees experience high levels of psychological safety with their line manager, they are more likely to speak up to report an incident or raise a concern. In my own academic research, reporting rates across two FTSE 250 companies rose from 74% to 85% in teams which had higher levels of psychological safety. In global organisations, even a small uplift in reporting can uncover hundreds of previously hidden early-warning signals.

Gill: Why is psychological safety such a critical issue for in-house legal and compliance teams?

Elizabeth: When employees feel safe to speak up about issues such as health and safety incidents or near misses, harassment concerns, data security vulnerabilities, suspected bribery and corruption, supply chain issues, product safety, or wellbeing, organisations have visibility and can respond and remediate. This reduces risk day to day, helps to avert incidents and protects the organisation’s reputation.

‍

Gill: How does psychological safety within the legal/compliance team impact performance?

Elizabeth: Psychological safety not only safeguards the organisation but also creates the conditions for creativity, collaboration and high performance - driving sustained growth. For knowledge work to thrive, people must feel safe to share what they know. That includes concerns, questions, mistakes and even early-stage ideas.  

When employees feel secure in ‘speaking up’ and empowered to contribute, organisations see greater innovation and stronger decision making – key drivers of competitive advantage.

A well-known example comes from Google’s 5-year study into team effectiveness. Their conclusion was clear: “Psychological safety is by far and away the most important of the five dynamics we found – it’s the underpinning of the other four.” (Julia Rozovsky, Google)

Gill: What difference does psychological safety make to the wider business engaging with legal/compliance?

Elizabeth: If colleagues fear being judged or ‘policed,’ they’ll avoid engaging until problems escalate. A psychologically safe culture signals that questions and concerns are welcome. It turns legal/compliance from a perceived barrier into a trusted partner.

Gill: What practical steps can leaders take to embed psychological safety and integrity?

Elizabeth: there are many ways to build psychological safety. Here are five practical steps that can make a measurable difference:  

1. Make it explicit. Talk openly about what psychological safety means and why it matters. For example, run a workshop/internal training session to set expectations: speaking up is valued, not penalised.  ‍

2. Model vulnerability. Leaders and line managers should lead by example. Admit mistakes, ask for feedback, and show curiosity. When leaders demonstrate openness, others will follow

3. Shift from blame to learning. Psychological safety can take months/years to build but minutes to destroy. Treat errors as opportunities to improve, not reasons for punishment – one harsh response can silence a team.

4. Create safe spaces for feedback. Use surveys (anonymous if necessary), one to one check ins, peer feedback sessions and retrospectives. Make feedback constructive.

5. Recognise and reward constructive feedback. Publicly thank people for raising concerns or sharing ideas. Recognition reinforces that speaking up is encouraged.

Gill: What are the risks if psychological safety is missing?

Elizabeth: Silence leads to under-reporting, hidden compliance breaches, and ultimately reputational damage. Psychological safety isn’t a soft skill - it’s a business imperative that underpins governance, risk, and compliance success.

–

Closing thoughts

The work Hesper GRC is doing is vital for modern organisations. Psychological safety is not negotiable - it’s a measurable driver of compliance, risk management, and resilience.  

For legal and compliance teams, safety must exist on three levels:
• Within their own team—to foster collaboration and learning.
• Across the wider business—to build trust and encourage early engagement.
• For the business approaching them—to ensure colleagues feel safe raising concerns without fear of judgment.

At Maven Radd, we believe these principles are essential for impactful, strategic in-house legal and compliance functions. By embracing psychological safety, teams move from being reactive gatekeepers to proactive partners who protect and enable business success.

Thank you to Elizabeth for this insightful discussion.

‍

Learn more about Hesper GRC at www.hespergrc.com.

‍