How to manage mental health in the workplace: 4 key strategies for leaders
Leaders are not just responsible for driving business results, they’re also tasked with creating an environment that fosters well-being. We know that ignoring the mental health of your team can lead to reduced engagement, lower productivity, and a high turnover rate. So, as a leader, how do you manage mental health effectively in your workplace? In our leadership coaching and training programs we work with our clients to ensure they apply best practices for mental health management using these proven strategies.
Understand the spectrum of workplace mental health
To manage mental health effectively, leaders must first understand what it means within a workplace context. Mental health isn’t just about diagnosable conditions. It includes stress, burnout, anxiety, and even emotional exhaustion, which can silently chip away at a team’s overall effectiveness.
Consider the difference between burnout — a state of chronic emotional and physical depletion —and stress, which tends to be more short-term and often driven by specific triggers. While stress can be motivating in small doses, burnout has long-lasting impacts, reducing motivation and creativity. These conditions, along with general workplace anxiety, are more prevalent than many leaders realise and can significantly affect both individual and team performance.
The hidden costs of mental health challenges are staggering. A lack of mental health support can lead to absenteeism, presenteeism (when employees are physically present but mentally disengaged), and declining performance. Leaders must be equipped to spot these subtle signs early.
2. Build a mental health-friendly culture
Leadership in mental health begins with setting the right tone. Modelling positive mental health behaviours, like taking breaks, managing your own stress, and speaking openly about well-being sends a powerful message to your team. Leaders who prioritise their mental well-being signal to others that it’s not only okay, but encouraged.
Creating open channels for communication is another critical aspect. Encourage employees to share their experiences without fear of repercussions. This requires establishing psychological safety, a concept coined by author and Professor of Leadership and Management at Harvard Business School, Amy Edmondson, which refers to an environment where people feel safe to express their thoughts and concerns without facing punishment or judgment.
A psychologically safe workplace leads to more innovative thinking and stronger team dynamics. When people don’t fear negative consequences for raising issues, they’re more likely to bring their whole selves to work.
3. Provide mental health resources and flexibility
It's crucial to be proactive when it comes to employee mental health. As a leader, being observant is key. Learn to recognise early signs of mental health challenges, such as changes in mood, declining work quality, or frequent absences. Often, employees may not feel comfortable discussing their mental health directly, so these signs can be the first indication that something is wrong. Simply saying “Hey, how are you? You don’t seem your usual self,” may help them open up. Check in regularly with all team members to show that you care.
Providing accessible mental health support is another important step. This can range from Employee Assistance Programs (EAPs) to suggesting a walk outside or an early finish if needed. Ensure that employees are aware of support available and understand how to use them. Sometimes, just knowing there is help available can alleviate some stress.
Tailoring your management style to accommodate diverse mental health needs is also crucial. Some employees may need more flexible work schedules, while others may require regular check-ins to feel supported. Flexibility in leadership will allow you to meet your team where they are.
4. Adopt a long-term approach to sustainable mental well-being
For long-term success, mental health must be embedded in your organisation’s DNA. This means integrating mental well-being into your organisational policies, from flexible working arrangements to ensuring manageable workloads.
Leaders should also invest in continuous learning and development to stay up to date on best practices for mental health management. This could include training on mental health first aid or leadership coaching that emphasises emotional intelligence and empathy.
Promoting work-life integration, rather than just work-life balance, is another essential strategy. While balance implies a strict division, integration allows employees to blend work and life in a way that minimises stress. Encourage your team to find their own rhythm rather than forcing a one-size-fits-all approach to wellness.
The ROI of prioritising mental health
Investing in mental health isn’t just about doing the right thing, it has tangible business benefits. Organisations that prioritise mental well-being see higher productivity, reduced absenteeism, and increased employee retention. A mentally healthy workplace attracts top talent and fosters innovation.
As a leader, it’s your responsibility to ensure that mental health is more than just a checkbox item. It should be a core part of your leadership strategy. By fostering a mentally healthy workplace, you’re not just taking care of your employees, you’re setting your organisation up for long-term success.