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Workplace wellbeing

What role does leadership play in employee wellbeing?

Helena Holder
October 9, 2024
8 mins read

What role does leadership play in employee wellbeing? 

With employee wellbeing more important than ever, there’s constant discussion about what the factors are that influence it. What plays a role, what doesn’t, what can have the most influence, and how how make an impact on employees’ wellbeing. One factor that has come more to the fore in recent years is the role of leadership

Leaders set the tone for workplace culture, directly impacting how employees feel about their roles, their teams, and the organisation as a whole. Whether through effective communication, empathetic management, or modeling work-life balance, leaders play a critical role in shaping an environment where wellbeing thrives. But what does this look like in practice, and how can HR guide leaders to better support their teams?

This blog will explore the ways that leadership plays a role in creating a culture of wellbeing. 

How exactly does leadership impact employees' mental wellbeing? 

A leader’s actions, decisions, and behaviours directly influence the workplace environment and as such, can shape people’s attitudes and values. They are the role models for what is expected and accepted. As humans, we naturally look up to leaders - just like how children look up to their parents, employees look up to their leaders. Leadership guides our own behaviours and actions. 

So it makes sense that if a leader leads effectively, compassionately and authentically, this has a positive impact on employees. 

But it’s not just the leadership style that can positively impact employees. It’s also the priority they give wellbeing. The way a leader prioritises wellbeing and mental health can largely shape the wellbeing and mental health of their teams. Leaders that prioritise wellbeing cultivate an environment where people feel valued, supported and safe to speak up about what they’re feeling, both positive or negative, as well as an environment where people prioritise their own wellbeing as an essential part of working there. 

Emotional intelligence is an essential leadership skill

This brings us on to why emotionally intelligent, empathetic leadership has become so important. Particularly in a world where employees value their wellbeing more than ever. 

According to Harvard Business School, emotional intelligence has become one of the most sought-after interpersonal skills in the workplace.  

The term emotional intelligence was first coined by researchers in 1990. It was later popularised by the psychologist Daniel Goleman, who said: “The most effective leaders are all alike in one crucial way: They all have a high degree of what has come to be known as emotional intelligence. It’s not that IQ and technical skills are irrelevant. They do matter, but...they are the entry-level requirements for executive positions.”

Emotional intelligence is what gives us the ability to recognise, understand and manage our emotions, as well as understand the emotions of those around us. Those with higher emotional intelligence are more able to think about how their emotions and feelings impact their behaviours, and how these impact other people. 

It also helps us to be empathetic when dealing with people - because we have a better understanding of where the other person is coming from and how can we manage interactions with them. 

So, emotionally intelligent leaders have better interpersonal skills and are more self-aware. So it makes sense that leaders with higher emotional intelligence and empathy will impact more positively on employees’ wellbeing. These are the traits that drive trust and rapport amongst employees, as well as a more supportive work environment. 

What does emotionally intelligent leadership look like? 

According to Forbes, leading with emotional intelligence and empathy involves:

  • Actively listening: being fully present and engaged in conversations. Listening to understand, not just respond. 
  • Authentic interactions: authentic, empathetic leaders don’t just say what the other person wants to hear. They are honest and open to others. 
  • An awareness of different perspectives: they can see the other person’s perspective, as well as view different perspectives on a situation. They approach situations objectively. 
  • Emotional flexibility: leaders can adapt their emotional responses to different situations. They can regulate their own emotions, as well as be attuned to the emotions of others. They manage emotional reactions in a way that is appropriate for the context, whilst also staying composed and empathetic. 

This article has some great ways for leaders to strengthen their emotional intelligence skills. 

How vulnerability in leadership can create psychological safety 

The best leaders aren’t afraid to be vulnerable, according to the Harvard Business Review

Vulnerability in leadership is a powerful way to create psychological safety, so we need to normalise it for employee wellbeing to thrive.

Leaders who practice vulnerability… 

  • Admit their mistakes and how they learned from them.
  • Apologise when they’re wrong.
  • Are honest about what’s going on for them e.g. letting people know they’re not 100% due to things going on in their personal life.
  • Create safe spaces during meetings by asking open questions about how people are feeling.
  • Speak up for what they believe is right e.g. openly advocate for equal pay for their teams.
  • Maintain boundaries when sharing.

All of these behaviours create psychological safety because they model vulnerability. As such, leaders begin leading by example, and demonstrate it’s ok to be vulnerable and open. 

Research has shown that psychologically safe workplaces have a significant positive impact on employee wellbeing. Psychological safety also drives innovation and higher performance.

  • A study of New Zealand legal practices found that the quality of psychological safety in the workplace determines whether leadership has a good or bad effect on employee experience.

  • Research from BCG showed that 12% of employees with the lowest levels of psychological safety said they were likely to quit within a year.

    The same research showed that when psychological safety is high, only 3% of employees are at risk of quitting.

  • Google’s Project Aristotle identified psychological safety as one of the most significant factors to influence performance, and that it can be cultivated through leadership.  

Using leadership training to empower managers to have productive conversations 

One of the ways we can help leaders to positively impact employee wellbeing is helping them to develop the ability to have meaningful conversations with their teams about mental health. 

We touch on this above because it’s part of vulnerable, emotionally intelligent leadership. It’s also part of the journey to a stronger culture of wellbeing throughout the business. 

But having productive and meaningful conversations about mental health is a skill in itself. 

Leaders need the right tools, strategies and an understanding of mental health to be able to do this. However, in a Gallup study, only 16% of employees said that the last conversation they had with their manager was meaningful. 

Opt for leadership training that recognises the importance of empowering both seasoned and new leaders to have conversations. This includes ways to create meaningful conversation, how to spot signs of poor mental health and what to do about it. 

Not sure where to start? MYNDUP can help. Check out our leadership workshops and our leadership coaching programmes that help leaders to lead compassionately and have productive conversations. 

Leaders drive the wellbeing agenda forward

We need to get more leaders taking an active interest in wellbeing, not least because it’s important, but also because employee wellbeing integrates with achieving business goals. Leaders who push for wellbeing on the agenda recognise this link, as well as how prioritising wellbeing mitigates people-related risks that can negatively impact a business. 

Leaders can actively champion employee wellbeing by working to cultivate a culture that prioritises employees’ wellbeing. By doing this, they’re driving the wellbeing agenda forward. 

Leading by example, leading with emotional intelligence, modelling vulnerability and normalising discussions around mental health are all ways of cultivating this culture and driving this agenda forward. 

Having leadership advocate for wellbeing also helps build your case for prioritising wellbeing at board level. 

The concept of boundaryless HR 

When we’re talking about the responsibility of leaders, we want to briefly mention the concept of boundaryless HR. 

This concept envisages a world where “people expertise isn’t solely owned by HR, but where people discipline in an organisation becomes a responsibility and capability of all, woven throughout the fabric of the business to create multidisciplinary solutions to increasingly complex problems.” (Deloitte) 

And in the context of leadership, business leaders must be responsible for developing their people-related expertise, and must recognise the importance of it for not just human outcomes, but business outcomes too. Leaders must move to becoming more accountable for their people - including their people’s wellbeing. 

For more on boundaryless HR, take a look at Deloitte’s deep dive

Leaders must also prioritise their own wellbeing 

Leaders are humans too! The nature of leadership is that it is pressurising. 

For leaders to lead effectively, and to drive the wellbeing agenda forward, they must also prioritise their own health and wellbeing. 

Self-care is not just personal - it directly impacts leadership effectiveness. 

Stressed, overworked leaders unintentionally create environments of high pressure and burnout. By prioritising their own wellbeing, leaders demonstrate that health and balance are essential for long-term success. 

When leaders are rested, focused, and resilient, they are better equipped to support their employees and drive a culture of wellbeing that has a lasting positive impact. 

Make sure that leaders have their own support too - whether that’s access to leadership coaching and training, therapy for working on challenges, encouraging them to set boundaries or setting up peer networks that allow them to discuss challenges confidentially. In fact, 9% of MYNDUP users are director/VP/C-suite/Exec level. 

Leadership’s role in driving employee wellbeing forward can’t be ignored

Leadership plays a pivotal role in employee wellbeing by setting the tone for workplace culture. 

Emotionally intelligent, empathetic leadership, along with vulnerability, helps create psychologically safe environments where employees feel valued and supported.

Leaders who prioritise their own wellbeing are better positioned to champion a culture of wellness and drive meaningful conversations about mental health. 

By actively pushing the wellbeing agenda forward, leaders not only support their teams but also contribute to long-term business success.

Book a no-obligation chat with us here so we can hear about your leadership challenges and create a plan of how MYNDUP can help.