Leadership Principles You Can Implement to Help Improve Employee Mental Health

Eugene Chrinian
4 min readApr 25, 2023

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According to a 2022 Gallup poll, approximately 60 percent of workers worldwide are emotionally detached at work. Further, research indicates that more than 80 percent of workers experience some form of mental health issue or burnout at some point in their working lives. This represents an opportunity for employers, who should understand that engaged employees have a lower likelihood of anxiety and depression, which are some of the biggest causes of disability claims in the United States.

In the United States, more than 90 percent of polled workers believe their company should support employees’ mental health, up 5 percent from pre-pandemic amounts. How can leaders create a company culture that prioritizes employee mental health? Many CEOs increasingly regard this as a vital leadership challenge that benefits employees and the company’s bottom line. The following principles can help.

Utilize Existing Structures

Instead of implementing new wellness initiatives, consider the frameworks and ecosystems your organization already has in place. For example, repurpose existing commitments (a recurring team meeting or a weekly conference) to focus on mental health. Instead of focusing exclusively on work, designate time for employees to go for a walk or get a coffee with a colleague.

Additionally, think of how the company’s stated values can inform wellness strategies and encourage desired behaviors. If corporate values include teamwork, clarify that individuals who sacrifice their personal health and wellbeing for the sake of the team are actually hurting the team’s performance. They can best support their team members by prioritizing self-care and rest. Healthy, fulfilled individuals will have the most to contribute to the overall team impact.

Measure Impact

Research show that supporting employee mental health has a positive return on investment (ROI). Conversely, failing to implement robust, comprehensive wellness policies costs companies millions of dollars. According to Gallup, employee burnout costs employers worldwide upwards of $322 billion in turnover and lost productivity. Employers spend 15 to 20 percent of their total payroll on voluntary turnover costs, which can be attributed largely to burnout.

Employers also pay more for insurance when employees experience burnout and related conditions, with 75 percent of employer medical costs due to preventable conditions. Employers and leaders can take immediate steps to improve employee wellbeing, including creating a budget for health and wellness. Prior to implementing policies that support mental health, create measures to track their impact. If you offer employees a monthly personal day to pursue meaningful activities, distribute surveys to gauge the impact on their levels of stress. If you offer a presentation on resilience, follow up after several weeks with questions about how attendees have changed their habits as a result.

Consider employee engagement data after implementing a new wellness initiative and look at behavioral data to see if absences or sick day patterns have been impacted. If you work with external partners, ask if they have any data that indicates the efficacy of mental health initiatives you have started. The more impact data you collect, the clearer your case to maintain and increase wellness budgets. You can also adjust your strategies as you see what works and what doesn’t.

Focus on the Group

Personal health is imperative, but employer initiatives should not strive to simply improve individual mental health. Employee assistance programs might include therapy sessions and emphasize personal change, but these single “fixes” neglect the power of the group in driving organizational mental health. United States Surgeon General Dr. Vivek Murthy corroborates the importance of strong connections in the workplace.

Employees who have strong relationships with coworkers enjoy not just better productivity, but higher standards of physical and mental health. Group-based programs that teach skills such as listening and empathic talking can reduce depressive symptoms among employees and strengthen relationships within and across teams. Corporate cultures that emphasize clear communication, trust, and authenticity nourish healthy relationships among team members, who will then bring their best selves to work.

Set a Positive Example

A 2021 study revealed that more than half of C-Suite executives have struggled with mental health issues. When senior leaders talk openly about their challenges, they reduce the stigma around mental health and encourage team members to be more open. Leaders will need to balance maintaining a professional persona and connecting on a human level.

However, practices like setting boundaries around working hours or making time to exercise can set a positive example for team members. If employees see a senior leader taking an occasional mental health day or leaving early to attend a child’s athletic event, they may feel empowered to pursue a work-life balance that supports their own mental health.

Above all, business leaders should recognize the importance of relationships to mental health. Leading from a place of kindness and positivity simply achieves better results. Success rates of leaders and their organizations benefit from values-driven, compassionate, humane leadership. Not only are their employees in these environments more engaged, but they are more loyal, engaged, and less likely to leave the company. Leadership strategies that encourage mental health are better for employee morale, profit, and shareholder returns.

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Eugene Chrinian

Eugene Chrinian is the CEO of Ashley Furniture HomeStores in NY and NJ. Eugene Chrinian's mission includes an emphasis on Leadership and Christian Values.