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"No 21st century organization can afford to have a culture of fear" - Jim Clifton and Jim Harter
Fear in the workplace is nothing new.
The old-style ‘command and control’ rule is still very much alive in certain companies where “do as I say,” is the edict, and ‘don’t question my authority’ remains. In this environment, many don’t feel they are empowered to make their own decisions.
You may want to dispute me on this, but after working with many millennials and Gen Z clients, I can honestly say, the younger generations are setting new rules and they won’t settle for the old style of leadership.
They want collaboration, communication, trust, recognition, and support to become strong leaders who care about the well-being of others because people gave enough time and resources to care about them.
In my research on the impact of fear on performance and retention for my upcoming book to be released in 2025, I have had many conversations with leaders, managers, and employees on their experience dealing with fear at work.
Industry leaders revealed stories of micromanagement, poor decision-making, reluctance to invoke change which led to lack of innovation and creativity, and a prioritization of control and fear-based behaviors instead of empowerment. They spoke about a culture of blame, and retribution for mistakes rather than welcoming opportunities to embrace change. And they highlighted the loss of great talent because of poor communication and lack of trust.
This behavior stifles creativity, reduces autonomy, and can lead to burnout. Employees who feel they have no control over their work are less likely to take initiative or feel a sense of ownership over their tasks, leading to decreased productivity and job satisfaction.
In research done by Gallup and McKinsey the statistics are significant.
- 95% of American workers report experiencing stress at work, with a significant portion citing work-related anxiety.
- Only 24% of U.S. employees believe their organization cares about their well-being.
- 50% of employees delay decisions due to fear.
- 60% believe fear impacts team interactions.
- 70% receive constructive feedback, but 20% face punitive actions.
Fear-based behaviors significantly sabotage a company's ability to be successful in a variety of ways and most of them are being ignored or leaders are simply unaware of the impact they are having on their direct reports.
Sarah’s story is an example of example of how low morale impacts a company growth.
“I used to love coming to work. It felt like I was valued, and leaders were interested in growth for individuals and the company. But after a while, leadership changed, and management stopped listening. I began to feel invisible, too afraid to speak up, and I withheld my ideas. As my enthusiasm faded, I watched my colleagues do the same. We all stopped taking risks, stifled by the fear of making mistakes because we might be fired. When the company was small, we all felt like we mattered. As it grew, we felt left behind. Now, the office feels like a place where we go along to get along, and I can’t help but wonder how much longer I can stay.”
In an environment free from fear, employees and leaders make more thoughtful, strategic decisions. They are not paralyzed by the fear of failure, which means they can take calculated risks that lead to significant business opportunities. Better decision-making also means fewer costly mistakes and crises to manage.
By eliminating fear-based behavior companies can focus on developing strong leaders who inspire and motivate their team.
Strong leadership results in a more resilient organization that performs better during economic downturns, maintaining profitability when competitors might struggle.
Greater adaptability can lead to quicker recovery during economic downturns, minimizing revenue losses and positioning the company for faster growth when conditions improve.
And for those that don’t adapt there is a sad reality.
Lack of agility in managing change led to the demise of Bed Bath and Beyond. A once thriving enterprise.
During the COVID crisis, the retail store had already been in decline due to competition from Amazon and other online retailers, although that was not the only reason for their collapse. Fear gripped leadership, clinging to in-store strategies while resisting e-commerce. As competitors adapted, they hesitated, leaving employees in limbo. Hours were cut, anxiety spiked, and morale crumbled. Loyal workers, once proud of their roles, became disillusioned as the company spiraled, leaving them with uncertain futures and broken spirits. Eventually it led to bankruptcy in 2023.
Fear creates barriers to open and honest communication. Employees may avoid sharing ideas, giving feedback, or voicing concerns because they fear negative repercussions. This lack of communication can lead to misunderstandings, unresolved issues, and missed opportunities to improve processes or address problems.
When communication breaks down, the entire organization suffers from a lack of alignment and collaboration. Communication training is a critical factor that is frequently overlooked.
We all know that trust between people is critical to creating strong teams. But what if the individual doesn’t trust themselves? This too is fear based. They don’t trust their ability to make decisions, say the right thing, take responsibility for their actions?
"Fear is our inability to trust we can handle whatever comes our way." - Susan Jeffers
Fear erodes trust between employees and management, and among team members. When trust is absent the cost to companies is huge.
Without trust, collaboration falters, and teams struggle to work effectively together. This lack of trust can also lead to a culture of blame, where people are more focused on protecting themselves than on working together to achieve common goals.
Fear-based behaviors are often the result of resistance to change.
When employees are afraid of the unknown, when things are uncertain, or threats to job security, employees are less likely to embrace new initiatives or adapt to new ways of working. This resistance can slow down the implementation of important changes and hinder the company’s ability to evolve and remain competitive in a dynamic market.
The most unfortunate impact of fear is the loss of talent.
Top talent is unlikely to stay in a fear-driven environment. Skilled and ambitious employees often seek workplaces where they feel valued, trusted, and free to grow.
When a company’s culture is rooted in fear, it struggles to attract and retain the best talent, leading to a drain of knowledge, skills, and innovation that are critical for success.
To achieve long-term success, it’s crucial to foster a culture of trust, openness, and empowerment, where employees feel safe to take risks, share ideas, and contribute their best work.
For individuals to feel empowered and ready to take greater risks it’s important to focus on the benefits of being pro-active, and reduce hesitation by supporting direct reports when they are unsure.
Acknowledgement and recognition are also a key factor in helping people to meet the challenge of change with optimism and a positive mindset. People want to feel valued, and when they feel like they belong in an organization, and are acknowledged for their contribution, they are more likely to deliver greater results.
Building a supportive network is also key to success. Surrounding yourself with trusted advisors, mentors and trusted peers who encourage and give constructive feedback allows for effective fear management.
When senior leaders encourage and invest in employees to acquire new skills and adapt to new behaviors that eliminate fear-based thinking there is a greater ROI on performance and retention.
Above all, to diminish the impact of fear in the workplace it’s essential we frame fear as a motivator to confront challenges, push beyond comfort zones, and recognize growth opportunities…One step at a time!
Jacqueline Wales is the founder of Transformational Strategies for Success programs
- Cutting-edge leadership development programs designed to empower leaders and professionals to unlock their full potential by fostering emotional intelligence, self-awareness, and effective communication.
- Our programs offer a comprehensive and holistic approach to personal and professional growth, equipping participants with the tools and strategies necessary to navigate challenges, build resilience, and drive success in their careers and lives.
- Participants engage in immersive learning experiences, online, and real-world applications, all designed to create lasting change.
- Transformational Strategies for Success provides the insights and support needed for employees to thrive in today's dynamic and demanding environments.
If you've read this far consider this:
You've poured your heart and soul into building your company. You've assembled a talented team…and yet, something's missing.
Despite their skills, your employees struggle with communication, lack of self-awareness, and fail to build the trust needed to truly excel across all dimensions of your organization.
You keep pushing for better performance but it only seems to make things worse.
It's time for a conversation.
If you would like to put an end to the challenges of building a strong team then reach out to me. I have a few ideas that could help.