One Trillion Dollars—Every. Single. Year. Yep, that’s one thousand billion dollars drained from the global economy annually due to mental health disorders, according to the WHO. Mind-blowing, right? Mental health challenges are on the rise, and compared to physical illnesses, they lead to longer sick leaves and earlier retirements. The massive economic losses, combined with the immense personal suffering caused by these conditions, make it clear: prioritizing the mental well-being of employees is absolutely essential. But here’s the big question: how do you actually do that?

What Is Mental Health?

The WHO defines mental health as a state of well-being that enables people to cope with life’s challenges, unlock their potential, learn and work effectively, and contribute to their community. But when mental health falters, these contributions diminish—and the whole community feels the loss. So, how do we help people do what the WHO describes: live up to their potential, learn, work, and thrive? Sure, individuals have a big role to play in their own mental health journey. But the management style still plays an important role.

Leadership Style and Mental Health

How do you lead your team? Are you making their lives easier— or adding to their stress? Let’s be real, some of you might be thinking, “I can’t coddle my employees,” or “Work is supposed to be hard—we’re not here to have fun!” But that’s not the point here.

The way you approach your employees has a huge impact on how they perceive their workload. With a less-than-ideal leadership style, even valid instructions or constructive feedback can feel like an unreasonable burden.Let’s start with an optimistic assumption: most people genuinely want to do a good job. If we believe this (and we should), it shifts the question from “How can I get my employees to work harder?” to “How can I help my employees succeed in doing the great work they’re already motivated to do?” This mindset shift moves us away from transactional leadership— where the focus is purely on performance and paychecks—toward transformational leadership.

This approach is all about growth, enthusiasm, learning, and inspiration. Transformational leaders guide their teams with vision and motivation. They encourage innovation and foster change by building trust, respect, and excitement, all while addressing individual needs and tapping into their team members’ potential. Research even suggests that transformational leadership can reduce perceived stress among employees. By leading with inspiration rather than pressure, you’re not just boosting productivity—you’re nurturing mental well-being.

Mutual Support for Better Mental Health

Leadership isn’t the only way to positively impact employees’ mental health. At the organizational level, there’s plenty a company can do to create a healthy, supportive atmosphere.

Establishing a culture of mutual support is a great place to start. But it can’t just be lip service—showing your commitment to this mindset might mean weaving it into your company’s mission statement.

So, what does a culture of mutual support actually look like? Here are five practical principles to make it happen:

Transparent Communication:

Encourage open and honest communication, especially around mistakes and vulnerabilities. This kind of transparency helps employees reflect on their own well-being and stay alert to warning signs in themselves and their colleagues.

Team Workshops on Social Support:

Host regular workshops focused on building social support skills. These sessions give employees the tools to better connect, empathize, and offer help where it’s needed.

A Mission of Mutual Support:

Incorporate mutual support into your company’s mission statement. This underscores its importance as a core organizational value and sets the tone for a collaborative, caring environment.

Develop Supportive Skills:

Help employees build key competencies that facilitate a supportive workplace. These include communication skills, conflict resolution, resilience training, mindfulness, and relaxation techniques.

Compassionate Responses to Mental Health Crises:

When employees show signs of a mental health crisis, approach them with empathy and respect. A thoughtful, supportive response generates trust and strengthens the sense of safety within the workplace.

By embedding mutual support into your company culture, you create an environment where employees feel empowered to help one another, speak openly about challenges, and collaborate on solutions. This not only boosts mental well-being but also drives productivity and engagement across the organization.

And What About You?

While you’re busy supporting your team, don’t forget about your own mental health.

Leaders are particularly vulnerable to psychological strain. Longer hours, relentless demands, and pressure from both upper management and your team—especially for those in middle management— can take a toll. To make matters worse, outdated ideas about leadership still persist, such as the notion that a leader must never show weakness, always have the answers, be constantly available, and micromanage every detail. This toxic cocktail can lead to burnout faster than you think.

So, what can you do to protect yourself? Here are four practical steps to safeguard your mental health as a leader:

1. Challenge outdated leadership ideals. It’s okay to admit when you don’t know something or need help. Show vulnerability—it builds trust with your team. Delegate wisely, rely on your employees’ expertise, and embrace a transparent, participative leadership style.

2. Create balance. Clock out at a reasonable hour. Take vacations— and yes, leave your work phone and laptop behind. Revisit old hobbies or try new ones to rediscover joy outside of work.

3. Build social networks. Connect with fellow leaders who face similar challenges. Sharing experiences can help you find solutions and support. Also, nurture friendships outside of work—it’s refreshing to talk about something other than deadlines and KPIs!

4. Model a healthy lifestyle. Exercise regularly and eat well—not just for yourself, but as an example for your team. Healthy habits are contagious. Suggest activities like a group walk during lunch breaks—it clears the mind and builds a sense of connection.

A Healthy Future as a Team

Challenges—big and small—will continue to shape our lives. Learning to navigate them effectively is something we all must strive for. As a leader, you carry a unique responsibility to your team and your organization. By embracing this responsibility, you’re not only supporting your employees and your company but also fostering your own well-being. You’ve got this—good luck!