Macroeconomic issues, a fractured political climate, mass layoffs that leave job stability in jeopardy, conflicts around the world … with all that baggage weighing people down outside the office, it’s no surprise that they bring it with them to their jobs, nor that workplace anxiety was recently named the top mental health concern plaguing employees. That anxiety, accompanied or exacerbated by increasing rates of depression, stress, and burnout, demands leadership that recognizes the importance of workforce wellness and leading with empathy and inclusion in the workplace.

Yet, a distressing one-third of corporate managers are leading through fear, and this approach can have far-reaching consequences. In a culture of fear, creativity is stifled as employees struggle to confidently complete work and bring up new ideas, leading to a less competitive organization. Morale and productivity suffer, driving high employee turnover rates. In a recent study on workplace dynamics, more than half of respondents said uneasiness about possible outcomes makes them occasionally or frequently delay critical decisions, while almost 60% said fear moderately to extremely impacts team dynamics, like communication and collaboration.

Tackling workplace anxiety isn’t simple, particularly because people often bring their own fears and apprehensions to the office. But switching to a culture that lifts everyone up, rather than keeps them in their heads, can transform performance and business results, lessen social anxiety in the workplace, strengthen teamwork, and bolster recruitment.

What Makes a Culture of Fear so Damaging

What is a culture of fear? In the business world, a toxic workplace environment where feelings of anxiety and fear are pervasive. The leaders in these settings lack a high degree of emotional intelligence and manage without consideration of employee wellness, which drives fears of failure, punishment, job loss, and discrimination.

The characteristics of a culture of fear typically include:

A punitive and controlling approach to management

Employees are afraid to fail because they’re conditioned to be punished even for small mistakes. This leads to “analysis paralysis” and inaction. People may stay silent when they see mistakes happening, fearing retaliation — which, in turn, contributes to mistrust and blame rather than collaboration and innovation.

Lack of leadership transparency and communication

Silence or mixed messaging from leadership results in gossip and the spreading of misinformation. This further endangers the trust needed for companies to succeed, and it often creates unnecessary workplace anxiety and fear during tough times, including concerns about job stability. There may be no structure in place for employee performance management, which can signal that leaders don’t value team members’ contributions and growth — and that, in turn, can lead to disengagement.

Poor leader alignment and accountability

Deficient leadership habits and disconnects tend to trickle down, leaving people unclear about expectations and fearful of being held responsible for work that others can’t or won’t do. Insufficient leader accountability can engender an “every man for himself” environment, in which people only do what’s in their job description and pass work off to others, creating unequal distribution of responsibility.

No policies preventing inequity and bullying

The absence of guidelines and rules governing equal treatment opens the door to discriminatory practices that can harm employees’ physical, mental, and/or emotional health and well-being. Without a focus on inclusion in the workplace, leaders also risk a decrease in innovation, as the perspectives of people from different backgrounds and experiences are lost to unfair treatment.

First Steps to Change: Dissecting the 4 Stages of Psychological Safety

How can leaders turn the tide when they recognize that a culture of fear is contributing to workplace anxiety? First, they must prioritize psychological safety, which means promoting an environment in which individuals feel comfortable and fully supported in voicing their ideas and opinions, asking questions, owning their work, and taking risks. There should be no fear that their efforts will be dismissed or diminished, their suggestions attacked, or any errors punished.

Timothy R. Clark created the 4 stages of psychological safety, which are helpful to keep in mind as aspects of this concept, but not always a linear process. Just like how dissolving a toxic workplace environment may include revisiting and repeating steps, implementing psychological safety can mean skipping steps or going out of order as the context requires.

The “stages” of Clark’s model include:

• Inclusion safety – team members feel they belong, are wanted and appreciated

• Learner safety – questions are welcomed in order to learn, and mistakes are OK

• Contributor safety – individuals can share ideas openly and without ridicule

• Challenger safety – anyone can question or challenge ideas and make suggestions

It’s important to note that the responsibility for using the 4 stages of psychological safety as a learning tool and as a resource for eliminating a culture of fear doesn’t just fall on leaders. Employees are equally responsible for fostering inclusion in the workplace, respectful communication and collaboration, and openness to new ways of thinking.

Solutions for Leading With Empathy & Improving Employee Well-Being

Although everyone’s responsible for creating a work culture free of anxiety and fear, change starts at the top. Here are several actions leaders must take to dismantle workplace anxiety and put their teams back on the road to better health and productivity.

Make experimentation and failure OK

Companies can’t grow without challenging themselves to take the big swings, so why shouldn’t employees do the same? It all starts with a more positive and encouraging attitude.

• Adopt a healthy mindset about mistakes. In improv comedy, there are no mistakes, only gifts and opportunities for learning and growth. By allowing ourselves to fail, we can see what we should do better next time. A major part of leading with empathy is accepting things don’t always go as planned and letting mistakes go, which earns loyalty from employees, who are given the confidence and trust to try again.

• Reward your innovators and recognize hard work. Even if you’ve shown faith in your most dedicated employees, the larger market will still cause many to worry about job stability — especially without consistent acknowledgment of individuals who go above and beyond. Start or strengthen your reward and recognition system to highlight people who meet and exceed targets and question the status quo.

• Offer a wellness program to assuage ongoing workplace anxiety. Not everyone will be able to accept failure when given more flexibility to make mistakes, and tearing down a culture of fear isn’t an overnight operation. Ensure you’re providing a wealth of resources to guide people through the challenges they face.

Demonstrate your commitment to communication

A toxic workplace environment may originate from any number of sources, like leaders’ bad decision-making, poor or unethical actions and performance, disputes, or mistreatment. But what feeds and escalates anxiety and fear? Insufficient communication.

• Conduct transparent team meetings and town halls. Most companies gather their employees to share information, but those meetings aren’t as effective when they’re not honest. Be open about leadership stumbles and how you recovered from them. Use these forums as a place to answer questions, hear concerns, and share learnings.

• Practice active listening and follow up. Employees are more likely to feel comfortable and assured when they know you’re giving them your full attention. Ensure they have multiple channels to voice concerns and share feedback, including surveys, office hours, and, for those with social anxiety in the workplace, a dedicated email address. When soliciting suggestions, don’t wait too long to follow up with action plans.

• Quickly and objectively resolve conflicts. Workplace anxiety can intensify when a negative interaction between employees isn’t addressed promptly, potentially leaving one or both parties believing their concerns aren’t being acknowledged. Take decisive action as soon as possible, reiterate workplace policies, and communicate next steps.

Empower and involve employees in individual and collective development

In a culture of fear, high stress and the pressure of perfectionism can easily lead to employee fatigue, burnout, and disillusionment. It’s incumbent upon leaders to engage and empower their workers to take control of their own growth and feel connected to the company’s.

• Open up brainstorming and decision-making. Some of the best ideas come from workers who lack experience but have great critical thinking and problem-solving skills. Take this input under advisement and you may see several benefits for your company, including contributions from hesitant employees who now believe all voices are valued.

• Invest in meaningful employee performance management. Without knowing what’s expected of them or by having an unreasonably high bar to hit for performance milestones, employees can drown in workplace anxiety. Involve them in creating goals and deliver consistent, constructive feedback to get the best results.

• Build a solid learning culture. If employees are doing the bare minimum and you’re having trouble with internal promotions, they may be burned out or worried about job stability — possibly even checking out other companies. Give them resources to upskill or cross-train across roles or departments and you’ll stand a better chance of re-engaging and retaining them, while benefiting your operation’s growth.

Build an infrastructure that prioritizes inclusion in the workplace

Workplace anxiety is hard on all members of the workforce, but for those who face additional barriers and obstacles, from discrimination based on racial, cultural, and religious beliefs to gender, age, disability, or sexual orientation, feeling comfortable, accepted, and free of worry and fear requires a workplace that brings everyone together instead of dividing them.

• Write and enforce zero-tolerance policies. Documenting equitable workforce treatment starts with instituting rules that prevent any form of inequity, favoritism, or injustice that contributes to a culture of fear.

• Introduce training on unconscious bias. Using an online course or a live speaker, encourage or require employees to investigate attitudes and beliefs that may be hindering their understanding of people different from themselves, which can stall collaboration and lead to tense situations.

• Allow for flexible working arrangements. Offer options to work onsite, remotely or in a hybrid setup and you create a welcoming workplace for people with physical disabilities, social anxiety in the workplace, and other challenges and conditions.

Work With Mindset Experts to Free Your Team of Workplace Anxiety

A culture of fear evolves from a combination of detrimental behaviors amongst leaders and systemic problems, which then inform the dynamics that lead to workplace anxiety, poor performance, and a bevy of other issues that drag your workforce and organization down. With the tips and tools shared in this blog, you can begin to steer your operation in a positive direction. But to truly get to the root of the beliefs, attitudes, and mindsets holding your team back, and change them for the better, speak with The Pacific Institute about its transformative mental technology and coaching services today.