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The impact of stress and competition on employee performance is a complex and multi-faceted topic. Both stress and competition can have both positive and negative effects on employees' performance, depending on various factors.
In this podcast, Banani discusses how stress and competition affects a person's productivity and efficiency at work.
Key Takeaways
- "Stress as motivator" is a limiting belief, not a personality type. Banani rejects the common framing that some people simply thrive under pressure. She argues stress-fuelled performance is chronic pushing that eventually breaks the person — the goal isn't to pick your stress type, it's to stop needing stress at all.
- Fear is the real productivity killer, not workload. Under stress, the brain fills with fear: concentration drops, error rates climb, creativity and problem-solving collapse. A strong performer under fear cannot deliver 100% — the energy is being spent on the overthinking, not the work.
- Absenteeism and withdrawal are stress signals HR misreads as attitude. Her corporate clients present with fatigue, procrastination, loneliness, and communication shutdown long before anyone flags them as burnt out. Managers default to "not competent" when the real issue is emotional.
- Every org needs a neutral third-party counsellor — on a continuous basis. One-off mental health talks don't solve anything. Banani argues employees won't open up to their manager about personal stress, so the organisation needs a non-judgemental outside professional visiting regularly for the communication channel to actually work.
- Emotional wellness training is the missing third pillar. Most companies run technical training and soft-skills training. Banani's prescription: add emotional wellness training at every level of the hierarchy — founder, VP, HR, managers, team leads — because leaders who can't manage their own emotions cannot handle their team's.
- Competition signals ego; collaboration signals confidence. Framing a peer as competition means you're trying to prove something — a sign of insecurity, not drive. Confident employees collaborate because they're comfortable enough to combine their strengths with someone else's. Compete with yesterday's version of yourself, not your colleague.
- Success comes at ease, not under stress. When hormones are balanced and the nervous system is calm, the full energy budget goes into the work. Stress siphons that energy into rumination — so the ritual of a walk or a few deep breaths before starting the day isn't soft; it's the performance lever.
In Banani's Words
On how stress actually degrades performance
When fear is there, your productivity decreases. You are not able to concentrate, not able to focus. Even a very good performer will not be able to give 100% — your entire mind is filled with fear. Your errors increase because you are nervous. Creativity gets reduced. Problem-solving ability goes down.
Most of your energy is sucked by the stress — thinking, overthinking. Your body doesn't have much energy left to do productive work, because the energy is getting utilised in overthinking.
On workplace wellness and the counselling gap
If you are hesitant to talk about your problems to your manager, there is a sense of fear that your personal stuff will be judged. That's why people tend not to express. Every organisation can have a third party — a counsellor, someone who deals with emotional health — so employees can go and talk in a neutral way, where they feel safe.
It cannot be a one-time process. Once in a blue moon a mental health professional comes and gives a talk — no. That way you cannot solve the problems of the employees. You have to visit them regularly and understand their process.
There are two types of training in every organisation — communication, soft skills, and technical. But there is one more which is very essential: emotional wellness training. Once that person understands how to deal with their own emotions, it becomes easy for them to handle their employees' emotions.
On competition vs collaboration
When you feel you are in competition, it means you already feel superior to somebody else — your ego has gone up and you are focusing on pulling somebody down. Collaboration means you are so comfortable with yourself that you are ready to accept newer perspectives. Instead of competing with others, compete with yourself.
On managing stress in the moment
Success comes when you are at ease, not under stress. Under stress, the energy is getting sucked out. At ease, your entire energy is going onto accomplishing the work.
Before starting work, calm your nervous system. Take a walk. Take a few deep breaths. The two thumbs represent overthinking — hold your left thumb with your right hand, take six to seven deep breaths, then switch. It aligns the left and right sides of your brain. Use it before a presentation or before starting your day.
About the Speaker
Banani Das Dhar, a psychology Counselor, an Energy Healer, Meditation Teacher, an Author & a Coach.
With an experience of more than 7 years, Banani helps people create their own Reality. She helps organizations grow by helping their employees' emotional and mental health. In addition to 1:1 personal consultations, Banani does Employees wellness Training sessions for organizations too. The training program is effective for the employees' Emotional and Psychological Wellbeing for better performance.
Banani solves people''s problem by understanding their limiting beliefs and helping them create their new reality.
Connect with me on Linkedin
Show Notes
How does an employee's performance change when they are under high levels of stress and competition?
What are some common indicators of decreased performance in employees when they are faced with stress and competition?
How can employers effectively assess and measure the performance of employees in stressful and competitive environments?
What strategies can managers implement to support and motivate employees who are experiencing stress and competition?
How does the presence of competition impact teamwork and collaboration among employees?
Are there any specific job roles or industries that are more prone to performance issues under stress and competition?
How can employers create a healthy balance between stress and competition to ensure optimal employee performance?
What are some effective stress management techniques that employees can utilize to maintain high performance in competitive environments?
How does the management style of a supervisor or leader influence employee performance in stressful and competitive situations?
What role does communication play in mitigating the negative effects of stress and competition on employee performance?
