The most successful companies are, and will continue to be, those that skillfully balance the needs of their people with the pursuit of profit. This delicate equilibrium is essential for fostering an environment where both employees and the business can thrive. While the right amount of stress and pressure can enhance wellbeing and performance, an excess can be detrimental. Thus, understanding and managing this balance is crucial for sustainable success.
The positive side of stress and pressure
Research shows that moderate levels of stress can enhance cognitive function and performance. According to the Yerkes-Dodson Law, there is an optimal level of stress that promotes peak performance. This optimal stress level encourages development, learning, and the ability to tackle complex problems, leading to personal growth and a sense of accomplishment. A study by the American Psychological Association found that
61% of employees who reported manageable stress levels also reported higher engagement and productivity at work.
When employees are challenged just enough, they are more likely to be engaged and motivated. Engagement often stems from opportunities to utilize one’s strengths and capabilities, which in turn, fosters a sense of purpose and connection within the workplace.
The danger of excessive stress
However, the fine line between productive stress and overwhelming pressure must be carefully navigated. Chronic, intense stress can erode morale, reduce engagement, and stifle innovation. Moreover, when employees are pushed beyond their limits, it can lead to burnout, a state of emotional, physical, and mental exhaustion. Burnout not only affects individual performance but also the overall health of the organization.
In high-pressure, sub-optimal work environments, employees may be less likely to raise their concerns, or even recognise them as risks to both themselves and to business. This means these issues often go undetected and represent a signficant drain on resources.
Understanding stress
This simple diagram helps us to understand how optimal stress, can very easily slip into boredom when it is too low or burnout when it is too high. If organisations wish to get the best returns on their investment in people, they need to understand what factors are at play within their organisation that are preventing their employees from getting into the peak performance zone and staying there.
By maintaining a manageable level of stress and fostering an environment where employees can utilize their strengths and capabilities, companies can achieve sustainable performance. This harmonious balance leads to mutually beneficial outcomes where both the business and its employees can flourish.
Creating such an environment is not about pandering to every whim but about understanding the critical link between employee wellbeing and business success, and then intentionally working toward creating the condition for that equilibrium to be achieved for the long-term.
How we enable businesses to achieve peak performance
The WellWise diagnostics system assesses the full spectrum of factors that create optimal performance & thriving, and explores how those factors are being impacted by the employee experience across all levels of the organsaition.
We point to hidden risks and support the development of a people strategy that focusses on the quick-wins and the issues that need addressing in order to yield the greatest impact to the corporate culture and the bottom-line.
In addition, it comes with 12-months access to our curated guidance and information platform with tailored content and tips to support both employees as individuals, as well as in their capacity as managers and leaders, ensuring everyone can play their role in fostering a high-performance environment.