How feelings of happiness are impacting psychological safety
As workplace happiness holds steady but moderate among Canadian employees, new data from ADP Canada’s Happiness at Work Index raises the importance of focusing not only on engagement but also on psychological safety as a component of well-being. The latest monthly report scores Canadian worker satisfaction at 6.7 out of 10, reflecting a stable but unspectacular level of contentment. "The Index shows us that Canadian workers are 'kind of' happy," says Heather Haslam, Vice President of Marketing at ADP Canada. "But the data also emphasizes that when employees feel safe—both physically and psychologically—they’re better positioned to thrive."
The Happiness at Work Index, based on a survey of approximately 1,200 workers across Canada, gauges employee satisfaction through questions about work-life balance, career advancement, compensation, and psychological safety. These factors create a detailed view of what influences employee engagement and well-being. According to Haslam, understanding and addressing psychological safety is vital to enhancing happiness and, by extension, workplace safety.
“Safety isn’t just about the physical environment,” Haslam explains. “It also includes psychological safety, where employees feel trusted, recognized, and valued as individuals. When people feel this way, they are more engaged, more motivated, and ultimately contribute to a safer, more cohesive workplace.”
While career advancement opportunities remain a priority—scoring just 5.9 out of 10—Haslam notes that this factor also intersects with psychological safety. Employees who see growth opportunities and feel supported in reaching their career goals are more likely to feel secure in their roles. “When employers understand their people’s career aspirations and develop pathways to help them grow, it fosters a sense of safety and stability,” Haslam says. “People are more focused, more careful, and more committed when they believe their future is valued.”
Compensation and benefits, scoring 6.2 out of 10, are another critical factor. Fair pay and benefits influence psychological safety by providing employees with a sense of security in meeting their needs. Haslam highlights that competitive and transparent compensation structures contribute to a safer environment by reducing stress and enhancing focus. “Pay equity and competitive benefits are essential not just to attract but to support people in a way that they feel valued,” she states.
Recognition also plays an essential role, scoring 6.5 out of 10, with Haslam noting that acknowledgment of accomplishments can reinforce a culture of safety. When employees are recognized for their contributions, they’re more likely to be invested in upholding safe practices and supporting their colleagues. “Empowering managers to recognize people in meaningful ways contributes to a supportive environment where people feel seen and appreciated,” she says.
Work-life balance, a top-rated factor at 6.8 out of 10, emerges as another major influencer of both happiness and safety. The flexibility to manage life and work demands plays directly into psychological safety by reducing burnout and increasing focus on tasks. “Flexibility allows employees to feel more in control of their time, which is essential for mental well-being and focus,” Haslam explains. “Workers with a healthy work-life balance are more present and alert, which naturally contributes to a safer workplace.”
The report’s findings underscore that fostering a culture of safety means looking beyond physical conditions and incorporating psychological well-being. Haslam emphasizes that leaders, especially those in health and safety roles, play a critical role in driving this holistic approach. “The best way to increase happiness and safety at work is to understand what drives them. The Happiness at Work Index helps us pinpoint these drivers, and it’s clear that psychological safety and happiness go hand-in-hand,” she says.
As Canadian companies navigate their workplace cultures, the Happiness at Work Index reveals that safety, satisfaction, and employee engagement are inseparable. For organizations looking to reduce workplace risks, a focus on happiness through psychological safety may offer a meaningful path forward.
