The Powerful Influence of Managers on Employee Mental Health: A Critical Imperative for C-Suite Executives

In the realm of workplace dynamics, a groundbreaking revelation has come to light - managers wield an enormous influence on employee mental health that can surpass even that of doctors or therapists. This realization begs the question: How can C-suite executives harness the power of effective management to foster a culture of mental wellness within their organizations?

Key Insights:

• Managers impact employees’ mental health (69%) more than doctors (51%) or therapists (41%) — and even the same as a spouse or partner (69%).
• More than 80% of employees would rather have good mental health than a high-paying job.
• Two-thirds of employees would take a pay cut for a job that better supports their mental wellness — and 70% of managers would, too.
• Work stress negatively impacts employees’ home life (71%), wellbeing (64%), and relationships (62%).?
• 40% of the C-suite says they will likely quit within the year because of work-related stress.

Unveiling the Impact: Workforce Turnover Statistics

The clearest evidence of the pivotal role managers play in employee mental health can be gleaned from workforce turnover statistics. Research consistently shows that organizations with supportive and empathetic management witness a significant reduction in employee turnover rates. Employees who feel understood, valued, and championed by their managers are more likely to stay loyal to their company, resulting in lower turnover costs and enhanced organizational stability.

A recent LinkedIn post highlighted a The Wall Street Journal article around "Less Pay equals Less Stress for Employees."

Some 40% of job-switchers who took lower-paying jobs from late 2020 through 2022 said their new roles were better, The Wall Street Journal reports, and a separate study showed a greater shift toward finding employers with aligning values and better work-life balance. Still, even though a less stressful role can provide a "raise" in free time and autonomy, transitioning to lower-paying roles will likely require a lifestyle and mindset shift, a career coach says.

• About half of U.S. workers said they would consider a 20% pay cut if it meant having a better quality of life, based on a 2023 study commissioned by Ford.
• During the pandemic-era Great Resignation, many workers jumped ship to roles that offered big pay bumps. But pay and benefits decreased for 15% of job switchers during that time, per Federal Reserve data.

Focus on Management Training

A recent study analyzed turnover data in a diverse range of industries and found that companies with proactive manager training programs focused on mental health support experienced a staggering 25% decrease in turnover rates compared to industry averages. This correlation underscores the tangible impact that effective management can have on retaining talent and fostering a positive workplace culture.

Empowering Managers as Mental Health Champions

As leaders in their respective organizations, C-suite executives hold the key to unlocking the full potential of their workforce through prioritizing mental health support. By investing in manager training programs, promoting a culture of empathy and inclusivity, and integrating mental wellness initiatives into strategic planning, executives can foster a workplace where employees feel valued, heard, and supported in their mental health journey.

The evidence is clear - managers have a greater impact on a person's mental health than their doctor or therapist. By leveraging workforce turnover statistics and best places to work data, C-suite executives can make informed decisions that prioritize mental wellness as a core component of organizational success. Let us embark on this transformative journey together, shaping workplaces where mental health is not just supported but celebrated as a cornerstone of excellence.

Join the Movement

Together, let us redefine the future of work by recognizing the profound influence managers hold in shaping employee mental health outcomes. As C-suite executives, we have the power to create workplaces where mental wellness thrives, resilience abounds, and success knows no bounds.

Are you ready to lead the charge towards a mentally healthy workplace? Join us in championing the transformative power of effective management in nurturing the minds and hearts of our most valuable asset - our people.

Jeff Bastien, Partner - SVP Employee Benefits