Why Stress Can Make Leaders Stronger (and When It Weakens Them)

When stress boosts our performance and when it overwhelms us: A balancing act between motivation and overload.

The Misunderstanding of Stress

In today’s business world, stress is seen as enemy number one. It is blamed for burnout, sick days, and declining motivation. Entire industries of coaches, trainers, and apps promise to “defeat” or “eliminate” stress. Yet this idea is a fundamental misconception.

Stress is not an enemy. Stress is a signal. It is deeply rooted in our biology, unavoidable - and, when properly understood, one of the most powerful resources available to leaders. Those who merely try to fight stress deprive themselves of a vital source of energy. Those who learn to channel it can enhance performance, build resilience, and strengthen their teams.

From Tigers to Deadlines

The roots of our stress system go back millions of years. When our ancestors spotted a predator in the bushes, they had to decide within seconds: fight or flight. The sympathetic nervous system released adrenaline and cortisol; blood rushed to the muscles; digestion shut down; heart rate and breathing accelerated - a perfect survival mechanism.

Today, the “tiger” is called deadline, investor meeting, or client presentation. The physiological reaction is the same: pounding heart, tension, focus. The difference? We can’t just run away. The stress remains - and that’s what makes it dangerous.

Eustress vs. Distress: A Fine Line

Modern psychology distinguishes between eustress (positive stress) and distress (negative stress).

• Eustress increases motivation, focus, and performance. It’s why musicians perform at their best on stage, why managers excel in a crisis, and why athletes deliver peak results.

• Distress occurs when stress becomes chronic - when the nervous system stays permanently in “drive” mode without activating the brake (the parasympathetic system). Consequences: sleep disorders, irritability, concentration problems, and health risks.

  
  

The line between them is thin. What matters is whether we allow the body to return to regeneration after periods of tension.

Numbers That Should Wake Us Up

• According to the WHO, stress and psychological strain have become the greatest health risks in the 21st-century workplace.¹

• The Gallup 2023 study shows that 44 % of employees worldwide feel “stressed on a daily basis.”²

• Across Europe, stress-related illnesses cost billions every year - Germany’s Federal Ministry of Labor estimates the economic damage at over €20 billion per year.³

Stress is therefore not an individual issue - it’s a macroeconomic factor, and a leadership responsibility.

Four Stressors Every Leader Should Know

Researchers distinguish four main causes of stress:

1. Time stressors – unrealistic deadlines, constant availability, work overload.

2. Encounter stressors – conflicts, difficult clients, tense team dynamics.

3. Situational stressors – interruptions, noise, chaotic processes.

4. Anticipatory stressors – worries about the future: markets, competition, personal career.

For leaders, this means: stress sources in organizations are diverse and not always controllable - but those who recognize them can respond consciously.

The Leadership Dilemma

Leaders are affected twice over: they are highly exposed themselves - and they shape the stress culture of their teams.

For example, a Harvard Business School study shows that a manager’s behavior directly influences employees’ stress levels.⁴ Leaders who always appear rushed send an unconscious message: “Only those in constant alert mode work hard enough.”

The result: employees adopt that attitude - with all the negative consequences. Conversely, leaders who take breaks seriously, disconnect digitally, and set clear priorities act as protective factors for their teams.

A Practical Example: When Stress Becomes a Resource

In one of my Lean Management projects, we introduced a daily “check-in.” Every morning, the team met for 15 minutes. Each person briefly shared what they were working on, where bottlenecks appeared, and how they felt.

The effect was remarkable: overloads became visible early, tasks were redistributed, communication improved, and the volume of emails decreased.

Productivity rose - not because stress disappeared, but because it was channeled. The team learned to counteract stress and develop solutions together.

Practical Tools

1. 4-7-8 Breathing: A technique to calm pulse and thoughts within two minutes. Inhale for 4 seconds, hold for 7, exhale for 8. Repeat several cycles.

2. Body Scan: A mindfulness exercise in which you mentally move through your body from toes to head, consciously relaxing each part. Helps stop rumination.

3. Resilience Routines: Sleep, sunlight, exercise, breaks, nutrition - simple yet crucial for sustainable performance.

4. Digital Detox: Reduce interruptions and set clear boundaries (e.g., no phone use after 8 p.m.).

These tools aren’t just for employees - they’re just as relevant for executives and board members.

The Cultural Lever: Managing Team Stress

Leaders can positively influence their team’s stress level through small but consistent measures:

• Daily Check-ins: Increase visibility of tasks, priorities, and emotions.

• Prioritize Tasks: Not everything is equally important.

• Psychological Safety: Stress can be named openly without being seen as weakness.

This cultural shift is not a “nice to have.” It determines innovation capacity, employee retention, and competitiveness.

Stress Is a Signal

Stress is unavoidable - but it’s not inherently negative. Properly understood and managed, it can become the driving force behind peak performance.

Leaders who try only to fight stress will lose. Leaders who recognize stress as a signal - who dose and channel it - will win: for themselves, their teams, and their organizations.

About the Author

Dominique Giger is a keynote speaker, consultant, and coach for organizations in leadership, mindset, and transformation. With her Purpose Mapping approach, she helps entrepreneurs, leaders, and teams translate meaning into daily work and build high-performance cultures.

🎙️ Podcast Episode: “Why Stress Makes You Stronger (and When It Weakens You)”

📺 YouTube: https://youtu.be/tM_KLSFyiaE

🎧 Spotify: https://open.spotify.com/episode/7JRIDCXRSetnD9M2GGN3tn

🎧 Apple Podcasts: Link

Sources

1. WHO (2020): Mental health in the workplace.

2. Gallup (2023): State of the Global Workplace.

3. Federal Ministry of Labor and Social Affairs (BMAS), Stress Report Germany 2022.

4. Harvard Business Review (2018): “The Leader’s Role in Employee Stress.”