The Hidden Cost of Fear in Your Organization

If you had to choose between employees who comfortably played it safe and those who consistently acted with courage, who would you rather have on your team? The answer ought to be obvious. In today’s world of constant change and uncertainty, courage isn’t optional; it’s essential. The future doesn’t belong to the fearful. It belongs to the bold. But here’s the rub: when uncertainty rises, so does fear. And when fear takes the driver’s seat, courage tends to get stuffed in the trunk. But how do you mitigate fear with safety?

Over the years, I’ve worked with thousands of leaders, and I’ve noticed a troubling trend: people are afraid. Afraid of change, afraid of failure, afraid of losing their job, afraid of disappointing the boss, and afraid of being too honest. And most dangerously, afraid of taking initiative.

Fear is terrible for business. It’s expensive. If you could quantify the Total Cost of Fear (TCF) inside most organizations, the number would be staggering. Fear causes people to withhold ideas, to stay silent when they should speak up, to play small when they could play bold. It leads to mistakes being hidden instead of fixed, and to innovation being smothered before it even takes its first breath. It also leads to good people walking out the door in search of workplaces where they’re allowed to show up with their full selves.

And yet, too many leaders still try to motivate through fear.

Let me say it plainly: fear might drive short-term compliance, but it will never inspire long-term excellence.

Fear or Courage: Which Culture Are You Building?

I once had two bosses. One ruled by fear. The other led with courage.

The first boss would assign me an important task and immediately outline all the disastrous things that would happen if I failed. She’d say things like, “This is your problem now. Solve it… or else.” What was going on? She was transmitting her own fear straight into me. She was afraid that if I messed up, it would reflect poorly on her judgment. Fear was her way of controlling the outcome.

The second boss—the one I directly reported to—was different. When he gave me a challenging assignment, he framed it as an opportunity. He’d ask what I thought a successful outcome looked like. He’d share what was at stake, not in a scary way, but in a way that highlighted the potential to make a real impact. And most importantly, he told me he believed in me and made himself available as a resource.

Guess which leader got more out of me?

Leaders who encourage courage don’t sugarcoat challenges, but they don’t catastrophize them either. They help their people believe that they can rise to the occasion, and they provide the support to do it.

The Irony: Safety Promotes Risk

Here’s the leadership paradox: the best way to get people to stop seeking safety is to actually create it.

I’m not talking about safety from hard work or high standards. I’m talking about psychological safety—an environment where people feel safe enough to take interpersonal risks. That means they can ask questions, challenge ideas, admit mistakes, and propose bold solutions without fear of ridicule or punishment.

When people feel safe, they act bravely. They step up, they speak up, they grow.

If you want your team to be more courageous, start by checking your own emotional composure. Are you reacting out of fear? Are you short-tempered under pressure? Or are you unknowingly creating an atmosphere where your people are walking on eggshells?

In my book Courage Goes to Work, I talk about the concept of “enfearing”—when leaders unconsciously transmit fear to their teams. It often sounds like this: “Don’t mess this up,” “Whatever you do, don’t drop the ball,” or “Heads will roll if this doesn’t go well.”

Fear-based messages like these don’t motivate. They paralyze.

On the other hand, encouraging leaders say things like: “This is a great opportunity,” “I’m confident in your ability to handle this,” or “I’ve got your back.” These words build trust and create a foundation where people can operate with courage.

Your Legacy as a Leader

At the end of the day, your success as a leader won’t be measured just by what you accomplished, but by what you inspired others to accomplish. Did you lift people up or hold them back? Did you make your team braver—or just more cautious?

The best leaders make it safe to be bold. They know that courage isn’t something you demand—it’s something you draw out. And you draw it out by creating conditions that encourage it.

Are you the kind of leader who ignites fear, or the kind who inspires courage? The choice is yours. And so is the legacy.

Interested in learning more about helping others grow through leadership? Check out these related topics:

Living LeadershipA Tip For Coaches – Learn to Inspire Courageous Action

This post was based on an excerpt from Leadership Two Words At A Time. Find it here.

 

Image by zhong chen from Pixabay

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Published on July 23, 2025 05:00
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