Donald Thompson: Want high-performing teams? Promote creative tension and workplace trust

The secret to long-term organizational success, high productivity and engaged employees is no secret at all. Strong manager-employee connections are the cornerstone of a thriving workplace—no matter the company or the industry. However, too many leaders are ignoring this essential need, allowing poor communication and unresolved conflict to undermine trust and weaken relationships.  

In a global survey on psychological safety, Workplace Options identified manager-employee conflict as one of the most common contributors to workplace stress, compromising well-being and performance across roles, industries and regions. Left unaddressed, disagreements, miscommunication, or mismatched expectations can strain relationships between managers and their team members. Yet too many managers lack the skills to manage these common sources of tension. DDI’s assessments of more than 70,000 manager candidates globally found that nearly half (49%) failed to demonstrate effective conflict management skills, and only 12% were highly proficient in this area.

Conflict resolution skills are too important to be an afterthought. C-suite executives can get immediate results by ensuring every people-leader throughout their organization understands how their behavior contributes to a culture of psychological safety. By fostering people-first attitudes and cultivating relationship-building behaviors, senior leaders can see tremendous impact. 

Why every leader should prioritize psychological safety and healthy tension

Creating a workplace culture that encourages psychological safety can seem like an insignificant detail when measured against bottom-line priorities like sales goals, cost overruns or shaky supply chains. However, the influence of a great manager can be extraordinary. According to one study, strong managers boost psychological safety by as much as 42%. 

When employees trust that they can speak freely without negative repercussions, they are more likely to share ideas, express concerns and take the initiative—behaviors that prevent mistakes, solve problems and drive organizational success. But unaddressed tension or conflict can undermine trust, making employees reluctant to take risks or share their perspective. 

Let me be clear. Not all tension is negative; in fact, healthy tension—marked by honest debate and respectful disagreement—often leads to growth, innovation and improvement. This constructive tension can stimulate creativity, encourage problem-solving and refine strategies. 

However, free-flowing comments and critical feedback can sometimes lead to bruised feelings, even in high-trust workplaces. It’s up to leaders to recognize when the atmosphere turns tense and immediately address negative emotions—before conflict damages team cohesion and productivity. 

The power of shared responsibility and mutual support

For the last decade, I've focused on improving my interpersonal skills, including conflict management. Inclusive language and better communication are part of my daily work, because as a leader my words carry weight. I don't want someone I manage to leave a meeting feeling upset or discouraged. I don’t want anyone to feel that they’re not being heard because my delivery was off that day. 

Say one of your team gives you a project update that falls short of expectations. You might be tempted to give some aggressive feedback that enforces your high standards but could also create unnecessary conflict. Instead, you might ask, “Help me understand your process, because we’re missing the objectives that I thought we agreed on. How can I help you get this to the next level?” Most issues happen because of poor communication, and by getting curious and sharing the responsibility, you can create an environment where high standards are a team goal. 

In addition, a focus on getting the work accomplished, rather than assigning blame, helps prevent unnecessary conflict and the negative emotions that undermine team morale. A collaborative approach also fosters psychological safety and reinforces a strong manager-employee relationship.

Five practical strategies for reducing conflict and building trust

I want everyone who works with me to feel empowered to make decisions and take risks, because it encourages them to grow professionally and helps the business win in the new economy. But without psychological safety, those competitive advantages disappear. Here are five practical strategies leaders can use to build trust, minimize manager-employee conflict and cultivate strong professional relationships: 

1. Encourage open dialogue: You can model the type of open, respectful conversations you want to see throughout your organization. By encouraging team members to share their perspectives before you give your own opinion, you set the expectation that all voices are valued and establish a framework for healthy communication.

2. Listen and ask questions: If you truly want the best idea to win, learn to ask questions instead of making statements. Pay attention to the answers, listen to the discussion and draw out individuals who might be reluctant to share their perspective. Over time, your team will gain confidence and become more willing to discuss new ideas. 

3. Set clear expectations: When you delegate work, you want to ensure that high standards are met, and the project aligns with organizational goals. To do that, it’s crucial to set expectations around quality of work, deadlines, communication, and prioritization. Don’t micromanage by telling people exactly how to perform their jobs but explain that you expect regular status updates. This provides space for open communication and ongoing collaboration, while also giving your team autonomy and flexibility.

3. Create a safe environment for feedback: Building a psychologically safe workplace involves encouraging employees to offer feedback without fear of retaliation. In a culture of continuous improvement and trust, employees are encouraged to share ideas, concerns and even mistakes, knowing they’ll get the support they need to address any challenges and achieve success.

4. Invest in manager training: Providing managers with training on cultural intelligence, conflict resolution and inclusive communication equips them to handle disagreements before they escalate. Investing in developing these key skills not only reduces unnecessary conflict but also enhances managers’ ability to create a more engaged, supportive team environment. 

As organizations navigate complex business challenges and generationally diverse workforces, addressing manager-employee dynamics becomes increasingly important. By prioritizing psychological safety, understanding healthy tension, and equipping leaders with effective conflict-management skills, organizations can foster a more resilient, inclusive and psychologically safe workplace. 

About the Author 

Donald Thompson, EY Entrepreneur Of The Year® 2023 SE Award-winner, founded The Diversity Movement, a Workplace Options Company, to fundamentally transform the modern workplace through diversity-led culture change. Recognized by Inc., Fast Company and Forbes, Thompson is author of Underestimated: A CEO’s Unlikely Path to Success, hosts the podcast “High Octane Leadership in an Empathetic World” and has published widely on leadership and the executive mindset. His new book is The Inclusive Leadership Handbook: Balancing People and Performance for Sustainable Growth, co-authored with Kurt Merriweather, Vice President of Marketing and Innovation at The Diversity Movement. Follow Thompson on LinkedIn for updates on news, events and his podcast, or contact him at info@donaldthompson.com for executive coaching, speaking engagements or DEI-related content.