How manager behaviour shapes stress, wellbeing and performance

Wellbeing requires ongoing support

Wellbeing is not a fixed state. It’s dynamic, shaped by both internal and external factors, and requires consistent attention.

A useful way to visualise this is as a reservoir. Daily pressures, like workload, financial concerns, or personal challenges, gradually deplete this resource. Without intentional replenishment, cracks appear as resilience drops and the risk of burnout increases.

Research from Allianz Australia highlights the scale of these pressures. Nearly 2 million employees have lost sleep due to work-related stress, and 15% of employees surveyed said the demands of their work have had a negative effect on their relationships with friends and family.

Protective factors are well established. Regular physical activity, quality sleep, social connection, and time spent on meaningful activities all contribute to restoring balance. Employers also recognise the role of structured support, like access to wellbeing resources, financial support tools, and recognition platforms, in helping employees maintain this balance.

However, the effectiveness of these initiatives is closely linked to leadership behaviour.

The impact of role modelling

Employee expectations around wellbeing have shifted significantly in recent years. There is a growing emphasis on psychological safety, openness, and authentic leadership.

The data from Allianz Australia shows that there was a 17.3% increase in Primary Psychological Workers Compensations claims between 2024 and 2025. At the same time, three in four employees say they have no clear way of discussing stress with their manager.

This disconnect highlights a critical opportunity for organisations.

When leaders visibly prioritise their own wellbeing and champion healthy coping strategies, it sends a clear signal that wellbeing is not only supported but expected. This helps to normalise conversations around stress, particularly in teams where employees may otherwise hesitate to speak up.

Three ways managers can model healthy stress management

1. Normalise conversations around mental health
Create an environment where discussions about stress are encouraged and handled without judgement. Regular check-ins and open questions can help surface concerns early. Where appropriate, managers sharing their own experiences of stress and how they managed it reinforces that seeking support is normal.

2. Take a proactive approach to stressors
Encourage teams to identify and address pressure points, like workload or competing priorities before they escalate. Early intervention is key to preventing unmanageable stress.

3. Demonstrate active listening
Active listening is fundamental to effective support. Managers should model attentive, empathetic communication, ensuring employees feel seen, heard and understood. Providing training in this area can help embed it across teams.

Leading sustainable performance

There’s no expectation for managers to be unaffected by stress. On the contrary, acknowledging its presence is often what enables more effective leadership.

By actively managing their own wellbeing and modelling healthy behaviours, managers contribute to a more resilient and sustainable working environment. This not only benefits individual health, but also strengthens team performance, engagement, and retention over time.

Wellbeing is a core part of effective leadership, and one that organisations must continue to prioritise through both cultural and practical support.

This article is based on insights originally shared by Tracey Paxton in Personnel Today.