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Psychological safety in teams is about creating an environment where team members feel safe to take risks, express ideas, ask questions, and admit mistakes without fearing negative consequences. Emphasizing learning from failures and promoting open communication are crucial elements in fostering psychological safety. Teams with higher psychological safety perform better as individuals are more engaged, motivated, and willing to contribute, leading to improved decision-making and innovation. Establishing psychological safety also enhances employee well-being and reduces stress and burnout.