It has been a tense time for drivers recently as the fuel crisis sent everyone into a panic. But it seems there wasn’t actually a shortage of fuel.

Transport issues caused problems getting fuel to the pumps, and the panic that ensued compounded the problem.

That’s the thing with panic – it makes things go from bad to worse.

Firstly, it’s contagious. It starts with one person, more follow suit and it snowballs. Secondly, it can cause common sense to go out the window. Logic might tell us there will be enough for everyone if we stick to normal buying habits but that nagging seed of doubt will still send many of us rushing to the pumps regardless.

Panic is a social contagion that can be hard to contain and it doesn’t always take much to create it, particularly in environments like the workplace.

It can start with the simplest of things, like the CEO walking around looking worried. Workers will immediately think the worst.

The reason for this is we’re all hard-wired with a degree of negativity bias.

We can’t help but fixate on the negatives – it’s thought to be an evolutionary trait designed to help protect us from threats.

In this instance, a worker may perceive an anxious leader to be a sign that the business is struggling and their job is at risk. And when that fear sets in, the psyche of the team will be impacted and productivity will drop.

Panic can also fuel something equally dangerous for a business, and that’s speculation.

I once worked in an office where drama started to unfold at 5pm. The bosses looked concerned, there was lots of whispering, and redundancies were made.

By that evening, myself and a number of colleagues had gone home and updated our CVs. By the time we were briefed on why the changes were happening the damage had been done and confidence had been knocked by the uncertainty.

There’s an easy cure for speculation, however, and that’s transparency and good communication.

As a leader you’re not obliged to tell your staff everything that goes on in the background but do learn to recognise when it’s beneficial to share some insights with them.

Staff will usually know when trouble is on the horizon.

If your company keeps failing to hit sales targets, they’ll know that’s not sustainable. Or if your company depends on revenue from clients and you lose a major client, they’ll know it may have a knock-on effect.

That’s the point where you need to be as open and honest as you can.

Even if you don’t have all the answers, it’s better to acknowledge the challenges your company is facing, reassure staff on the steps you’re taking, and keep speculation and worry at bay.

Panic really does bring out the worst in human behaviour – last week’s reports about brawls at the petrol pumps are testament to that. In the office it may not lead to a fist fight, but it can lead to a toxic culture where teamwork goes out the window.

That’s why it’s essential that bosses are acutely aware of the effect their conduct can have on their workforce.

Patrick Lencioni, one of the world’s foremost experts on leadership, says a CEO must also be a “CRO” (chief reminding officer) and believes there’s

no such thing as too much communication.

So, don’t be afraid to do it – as Patrick points out, no employee has ever left a company because their leader has communicated with them too much.

Laura Gordon is a CEO coach and group chair with Vistage International, a global leadership development network for CEOs