Modern work is stressful. Targets shift, resources tighten, and the pressure to deliver grows heavier each year. While no leader can eliminate stress entirely - or “fix” an individual’s personal burdens - they can turn resilience into a shared team capability rather than an individual struggle. And that shift begins with leadership behaviour.
Multiyear research into leadership, psychological safety, and organisational politics reveals a stark truth: most workplace stress is episodic and manageable - until leadership unintentionally amplifies it. When leaders operate from pressure, fear, or burnout, teams absorb those signals. Emotional contagion is real, and when a leader becomes reactive, controlling, or withdrawn, the team’s stress rises sharply.
But the opposite is also true. Leaders who regulate their own stress, communicate clearly, and model healthy coping behaviours can transform stress into momentum, creativity, and stronger engagement.
Stress shapes engagement - for better or worse
Emotional engagement is the engine of high performance. When people are connected to their work, they bring care, creativity, and discretionary effort. But engagement is fragile. Overwhelming stress drains emotional reserves, while well-managed stress sharpens focus and heightens energy.
Three factors determine whether stress becomes fuel or friction:
- Intensity – Leaders often underestimate the full load employees carry. Personal pressures - family, finances, caregiving - compound workplace demands.
- Perspective – What motivates one person can paralyze another. Values, goals, and life context shape how stress is interpreted.
- Capacity – Some employees thrive under pressure; others need stability. Genetics, personality, and support systems all matter.
Leaders can’t control these factors, but they can create the conditions where people navigate them more effectively.
The fight, flight, and freeze of workplace stress
In high-stress periods, employees often drift from their optimal “functionality band.” Some go into fight mode - pushing harder, becoming hypercritical, or displaying impatience and perfectionism. Others slip into freeze - withdrawing, staying silent, or disengaging to self-protect. These patterns are natural, but if they become chronic, they harden into trauma and erode trust, collaboration, and performance.
This is where leadership behaviour is pivotal. Teams mirror the emotional tone leaders set.
Leading better through stress
To help teams manage pressure more effectively, leaders should focus on three evidence-backed practices:
- Look in the mirror
Leaders set the emotional weather. Managing stress starts with managing the self - understanding triggers, regulating reactions, and seeking support. This is where peer group coaching is invaluable. Leaders who regularly meet with peers from other industries gain perspective, feedback, and emotional steadiness that is difficult to access inside their own organisation. - Expand the team’s “Functionality Band”
Coaching, fair expectations, and thoughtful communication reshape how employees perceive stress. Removing unnecessary friction - unclear processes, unrealistic deadlines, inconsistent priorities - helps people stay engaged even when under pressure. - Build a culture of emotional integrity
Employees don’t need leaders to solve their stress - they need leaders who acknowledge it. When people feel heard and supported, they regain clarity and contribute meaningfully. Micro-cultures of trust, often built peer-to-peer, are the true foundation of resilience.
Why peer group coaching matters more than ever
Leaders often feel isolated. They carry the expectations of others while suppressing their own doubts. Peer group coaching offers a rare space to think aloud, gain insight, and challenge assumptions - without hierarchy or politics. Learning alongside peers from different industries brings fresh perspectives that help leaders recognise blind spots and adopt healthier, more effective leadership responses.
Stress isn’t going away. But with reflective leadership and strong peer support, it can become a catalyst for performance, connection, and growth - not burnout.
REFERENCE
https://sloanreview.mit.edu/article/how-leaders-help-teams-manage-stress