The foundation of effective leadership: Why mental fitness matters

Keywords: mentalhealth, leadership, effectiveness

Date: 29 October 2024, WorkLife Digital

Research consistently shows that the psychological health of leaders profoundly affects their ability to lead effectively. It influences not only their decision-making and problem-solving abilities but also directly impacts company culture, productivity, and the mental health of employees. Neglecting this vital aspect can lead to a toxic work environment, low morale, and decreased business performance. On the other hand, when leaders prioritise their mental fitness, they foster a resilient, engaged, and mentally healthy workplace that drives sustainable success. By measuring and managing mental health, leaders can create a healthier, more effective workplace.

The role of leaders in shaping organisational culture

Leaders set the tone for a company’s culture and influence how employees feel about their roles and the organisation as a whole. The mental health and psychological stability of leaders play a pivotal role in creating either a supportive or a stressful work environment. When leaders struggle with burnout, anxiety, or unaddressed mental health issues, their capacity to provide effective guidance and make well-considered decisions is compromised. This can lead to unpredictable decision-making, poor communication, and reactive management styles that create tension and instability across teams.

Conversely, leaders who are mentally healthy are better equipped to make clear, ethical, and balanced decisions. They’re able to model emotional resilience and foster a culture of openness, trust, and psychological safety. Such a culture encourages employees to communicate openly, take calculated risks, and learn from their mistakes, knowing they have the support of their leaders. This supportive environment not only boosts morale but also contributes to higher levels of creativity and innovation, as employees feel free to bring their ideas and perspectives to the table.

Decision-making and problem solving

Psychological health is closely tied to cognitive function, particularly when it comes to decision-making, problem-solving, and critical thinking. Leaders who are mentally fatigued or emotionally drained are more likely to make impulsive or short-sighted decisions, which can have negative repercussions for the entire organisation. These leaders may become more risk-averse or reactive, focusing on immediate problems without considering the long-term implications of their choices. This can lead to issues such as resource misallocation, missed opportunities, and decreased innovation, all of which can hinder business growth.

In contrast, leaders with a healthy mental state can think more clearly, process complex information, and weigh the pros and cons of decisions more effectively. Their ability to remain calm under pressure allows them to make well-considered choices that align with the company's vision and values. This thoughtful approach to decision-making not only drives better outcomes but also inspires confidence among employees, who are more likely to rally behind leaders they trust and respect.

Productivity and retention

When leaders neglect their own psychological health, they often become less effective in managing teams and driving productivity. Employees who witness their leaders struggling with psychological health challenges may experience uncertainty, lowered morale, and disengagement. In extreme cases, this can contribute to higher turnover rates, as employees may feel unsupported or uninspired by their leadership. Studies have shown that employees who work under stressed or overwhelmed leaders are more likely to experience burnout themselves, leading to a cycle of disengagement and attrition that can be costly for organisations.

Mentally healthy leaders are more likely to recognise and reward employee achievements, provide constructive feedback, and create opportunities for growth. These practices reinforce employees’ commitment to the organisation, increasing their job satisfaction and loyalty. As a result, businesses with leaders who prioritise mental health are more likely to retain top talent, benefiting from a stable and motivated workforce.

Measuring and managing psychological health

To create a healthy work culture, leaders must first recognise the importance of assessing their own mental health. Regularly evaluating stress levels, emotional resilience, and overall wellbeing enables leaders to understand and address their mental health needs.

Measuring psychological health also extends beyond the leader. Leaders should consider implementing organisation-wide mental health evaluations to gain insight into the wellbeing of their employees. Health Psychology Research suggests that regular mental health check-ins and a structured approach to psychological assessment in the workplace lead to increased engagement and productivity.

Leading by example: The power of visible wellbeing practices

Modelling mental wellness is one of the most impactful ways leaders can promote a healthy work culture. Leaders who practice boundaries and maintain a work-life balance set a standard that employees feel empowered to follow. Everybody needs to put in long hours sometimes, but equally everybody will have periods when they could finish early – and if they can, they should. For a culture to be healthy it needs downtime to recover from the busy times. Great results require periods of rest as well as effort. Leaders who visibly engage in healthy behaviours signal to employees that mental wellness is a priority. This behaviour creates a culture that values work-life balance and reduces the stigma associated with mental health struggles, allowing employees to feel comfortable prioritising their own well-being.

Creating an environment that values mental health can improve both employee satisfaction and company performance. Employees are more likely to stay committed and engaged in workplaces where they feel supported. This culture of support and empathy, modelled by leaders, can lead to lower turnover rates and higher productivity.

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

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Dextras-Gauthier J, Gilbert M-H, Dima J and Adou LB. Organizational culture and leadership behaviors: is manager’s psychological health the missing piece? Frontiers in Psychology. 2023; 14:1237775.

Wolor CW, Ardiansyah A, Rofaida R, Nurkhin A, Rababah MA. Impact of Toxic Leadership on Employee Performance. Health Psychology Research. 2022;10(4).