The business case for mental health: It’s not about coddling or indulging

Keywords: leadership, mentalhealth, productivity, sustainability, sharedresponsibility

Date: 16 January 2025, WorkLife Digital

The role of a business leader has never been more challenging. Balancing profitability, operational efficiency, and shareholder expectations with the human needs of employees is a delicate act. And while there’s no question that employees must demonstrate resilience and accountability for achieving key performance indicators (KPIs), the idea of supporting mental health isn’t about coddling or indulging. It’s about creating an environment where individuals can thrive, ensuring sustainable productivity and innovation.

Changing expectations in the workplace

The world of work has undergone seismic shifts. The COVID-19 pandemic disrupted traditional workplace models, and subsequent cultural changes have amplified employees' expectations for meaningful work, flexibility, and well-being. Today’s workforce demands more than a paycheck; they seek purpose, psychological safety, and a workplace that values their voice.

According to numerous studies, employees are more likely to stay with companies that prioritise their well-being. This is particularly crucial in an era where talent acquisition and retention have become more challenging than ever. Forward-thinking leaders understand that fostering a positive workplace culture isn’t a “nice-to-have”—it’s fundamental to staying competitive.

Beyond token gestures

It’s easy for organisations to implement surface-level initiatives like providing meditation apps or organizing a “Pizza Friday”. While these efforts may signal an awareness of employee well-being, they often fall short of addressing the underlying challenges that lead to burnout, disengagement, and absenteeism.

Real investment in mental health goes deeper. It involves creating systems, policies, and practices that address the root causes of workplace stress and dissatisfaction. This might include:

Clear and fair expectations: Establishing transparent goals and providing the tools needed for employees to succeed.
Regular check-ins and feedback loops: Ensuring that employees feel heard and valued by their managers.
Comprehensive support systems: Offering access to counselling, mental health resources, and professional development opportunities.
Flexible work arrangements: Recognising that one size does not fit all and allowing employees to work in ways that suit their personal and professional lives.

Psychological safety: The foundation for resilience

At the heart of a healthy workplace is psychological safety. Coined by Harvard professor Amy Edmondson, psychological safety refers to an environment where individuals feel safe to express ideas, admit mistakes, and ask for help without fear of judgment or retribution. This type of culture fosters creativity, collaboration, and innovation.

A psychologically safe workplace doesn’t happen by accident. It requires intentional leadership. Managers and executives must model vulnerability and empathy, actively listen to their teams, and prioritise open communication. Building trust is paramount, and it starts from the top.

The business case for wellbeing

Investing in mental health isn’t just the right thing to do; it makes sound financial sense. Workplace stress and poor mental health are significant contributors to absenteeism, presenteeism (where employees are physically present but not fully engaged), and turnover. These issues cost businesses billions annually.

Conversely, organisations that prioritise mental health often see measurable benefits, including:

Improved productivity: Engaged employees are more focused, efficient, and innovative.
Reduced turnover: Employees are more likely to stay with companies that care about their well-being.
Enhanced reputation: Companies known for their commitment to employee health attract top talent.
Stronger bottom line: Research consistently shows that businesses with high employee engagement outperform those without.

Shared accountability

It’s important to acknowledge that mental health is a shared responsibility. Employees must take ownership of their resilience and performance. However, they cannot do so in an environment that is toxic or unsupportive.

Leaders must balance accountability with compassion. This means setting clear expectations while providing the support employees need to meet them. By fostering a culture of balanced accountability, businesses can empower their teams to succeed without sacrificing well-being.

Leadership’s role in driving change

True change starts with leadership. Business leaders must champion mental health initiatives, embedding them into the company’s core values and strategy. This isn’t about passing responsibility to HR departments; it requires active involvement from the C-suite.

Leaders must also be willing to invest—not just financially, but with their time and attention. This might mean participating in training programs, sharing their own mental health journeys, or mentoring managers to adopt a more empathetic leadership style.

The workplace is changing, and so are employee expectations. Businesses that fail to prioritise mental health risk falling behind, while those that invest in their people will thrive. By creating psychologically safe environments, listening to employees, and going beyond superficial perks, leaders can build resilient, productive teams that drive long-term success.

WorkLife Digital is a global mental-wellbeing consultancy driven by the mission to improve the sustainability of businesses. Our psychological wellbeing tool, Worklife Quotient (WL-Q), is modelled on cutting-edge scientific research and provides organisation-wide measurement and intelligence on the mental wellbeing levels and psychological resilience of staff. WL-Q also assesses the impact of organisational practices (i.e. people and culture, leadership styles, organisational purpose and values, social impact) that have a direct influence on staff wellbeing and provides strategic recommendations on addressing risks and promoting strengths.

For more information, get in touch at lisa@worklife.digital