Managing a Stressed Employee? What Helps (And What Harms)

Anxiety is a prevalent mental health condition that many managers will face, either personally or within their teams. In fact, anxiety disorders affect 3.4 million Australians each year, which is 17% of the population. So, considering that almost one in five people will experience anxiety, it’s crucial to understand how anxiety presents in the workplace and to know how to respond.

Anxiety takes a considerable personal toll, but if not handled appropriately, it can also negatively impact productivity, staff retention, and team wellbeing. In the following blog, we’ll discuss the nature of anxiety in the workplace, its causes and how to manage an employee with anxiety.

What Anxiety Looks Like at Work

Workplace anxiety is a severe state of stress that is a result of job-related situations. It can come from workload pressure, deadlines, interpersonal challenges, performance expectations or a fear of making mistakes. While some level of stress at work is normal, anxiety becomes a problem when it becomes persistent, overwhelming, and begins to affect a person’s ability to function.

Anxiety isn’t always obvious. Many people who experience it continue to show up to work, meet deadlines, and appear outwardly fine. But under the surface, they may be dealing with constant worry, self-doubt or a sense of dread about work-related tasks or interactions.

Workplace anxiety doesn’t look the same for everyone. It can show up in different behaviours, some visible, others more subtle, but some common signs include:

  • Missed deadlines or reduced productivity
    Tasks may take longer due to overthinking, difficulty concentrating, or fear of making mistakes.
  • Withdrawal or disengagement
    Avoiding meetings, limiting communication, or becoming quieter than usual. This can be mistaken for a lack of interest, but it is often driven by fear or overwhelm.
  • Overworking
    Staying late, taking on too much, or struggling to switch off. This is often an attempt to compensate for perceived shortcomings or prevent mistakes.
  • Avoidance behaviours
    Putting off certain tasks, especially those that feel high-pressure, such as presentations, difficult conversations and decision-making.
  • Perfectionism
    Spending excessive time on tasks, being unable to submit work until it’s perfect or being highly self-critical.

It’s important to understand that these behaviours are not signs of laziness, a lack of motivation, or a poor work ethic. In fact, in many cases, the opposite is true:

  • People with anxiety often care deeply about their work.
  • They may set extremely high standards for themselves.
  • Their behaviours are usually a result of a fear of failure, judgment, or letting others down.

As a manager, if you recognise what’s behind the behaviours, it helps you respond with compassion and support, rather than blame.

Why Manager Support Matters

Managers who are trained in how to manage an employee with anxiety are pivotal in creating psychological safety at work. It’s this type of culture that helps people experiencing anxiety in the workplace to recover.

If anxiety is handled appropriately, employees avoid burnout and disengagement, thereby reducing staff turnover. The benefits of having a strong anxiety-supportive workplace culture include enhanced trust, performance and loyalty.

 

How to Manage an Employee with Anxiety

Managing an employee with anxiety can be challenging. It’s common to focus on visible behaviours rather than the underlying issues. But employers must prioritise the mental health of their employees and provide resources to help them manage anxiety in the workplace.

The following strategies help you provide an immediate and considered response, but pursuing professional development will ensure you are fully equipped to provide your full support.

Show Empathy, Don’t Make Assumptions

Show empathy instead of making assumptions. When you lead with curiosity, empathy will naturally follow. Ask open-ended questions about the difficulties your employee is facing and listen without labelling or diagnosing.

Respect Privately and Confidentiality

Make time for regular, private conversations about the challenges the person is facing at work. It’s always best to discuss matters of mental health sensitively, including respecting confidentiality.

Provide Clear Expectations

Make sure you provide clear, realistic goals and support employees experiencing anxiety to achieve them. When expectations are clear, it reduces anxiety about performance expectations.

Offer Flexibility Where Possible

Empower employees to make decisions that help reduce workplace anxiety, especially around adjustments and accommodations such as:

  • Flexible hours
  • Remote work options
  • Adjustment of workloads during high-stress periods

Encourage Support Resources

Create a supportive environment where employees feel encouraged, not pressured, to access the support available in your workplace. You can gently suggest resources like Employee Assistance Programs (EAPs), taking mental health days, or accessing professional support, all of which contribute to mental health and well-being.

Focus on Strengths and Progress

Recognise the strengths and positive contributions of employees experiencing anxiety in the workplace to boost confidence, motivation and overall wellbeing. When you reward progress over perfection and avoid micro-management, you build trust by giving autonomy.

What ‘Not’ to Do

  • Dismiss feelings (by saying things like, ‘everyone gets stressed’).
  • Publicly call out performance issues tied to anxiety
  • Overload with pressure
  • Try to ‘fix’ them

Building an Anxiety-Supportive Workplace Culture

You can help your organisation build an anxiety-supportive workplace culture by normalising conversations about mental health. One helpful way to do this is regular check-ins, team discussions, or simply modelling supportive language and behaviours in everyday interactions. You can also train leaders in how to support employees with anxiety through professional development programs such as the Certificate of Anxiety Management and Managing Anxiety at Work.

When to Escalate or Seek HR Support

You will need to engage HR if an employee’s performance is significantly affected or if their ongoing support needs exceed your role.  HR can help arrange reasonable adjustments and accommodations and provide advice on staying within legal and ethical boundaries that protect both the employee’s well-being and the organisation.

 

Understanding how to manage an employee with anxiety is about knowing when (and how) to provide support, including listening, showing empathy and creating psychological safety. You can learn more about building a more supportive and resilient workplace culture in Managing Anxiety at Work, Certificate of Anxiety Management and Psychological Safety at Work.

 

Can we help you with professional development to understand how to manage an employee with anxiety? Whether you’re looking for professional development for yourself or a team, we have a training solution for you. Simply contact one of our friendly Course Consultants today on 300 76 2221, via Live Chat, or Online for more information on soft skills professional development courses.

 

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