Why Leaders get Mental Health wrong?

Today is October 10th, 2024. World Mental Health Day.

Over the last few decades, there’s been a growing conversation around mental health, psychological safety, and workplace wellness.

But there’s a stark contrast between what’s discussed and what’s implemented when real business decisions come into play.

Leaders often speak the language of care, but when financial challenges arise, mental health programs are among the first to be cut.

The truth is, many leaders still don’t grasp the importance of mental well-being at work, and the consequences of this oversight are felt across entire organisations.

It’s time to confront this reality head-on and understand why leadership needs to change, for the good of both people and profits.

Chapter 1: The Legacy of Fear-Based Management

For the last 50 years, fear has been the driving force behind much of corporate leadership.

The traditional command and control model, where leaders impose their will through strict oversight and a rigid hierarchy, has been the default management style.

Decisions were often made in isolation by top executives, with little regard for how they affected the mental health of employees.

Success was defined by numbers on a balance sheet, not the well-being of the individuals driving the business.

This type of leadership created an environment of constant stress. Employees worked under the threat of being reprimanded or losing their jobs if they didn’t meet targets.

Mistakes were met with punishment (performance reviews?), rather than opportunities for growth. Innovation was stifled because fear of failure outweighed the desire to take risks.

In this system, emotions had no place in the workplace; they were seen as weaknesses to be suppressed, not acknowledged.

As a result, leaders who operated in this style often misunderstood the needs of their people. Employees, driven by fear, might comply in the short term, but long-term engagement, loyalty, and innovation were sacrificed.

Gallup Engagement survey 2024 points that 87% of people in Europe, don't care about their job.

The emotional toll of working in such environments was rarely addressed, and leaders remained disconnected from the true impact of their decisions.

Reflection Questions:

• How often have you witnessed fear-based decision-making in your workplace?
• Do you think fear has been used as a motivator in your leadership style or that of your company?
• What are the long-term effects of leading with fear versus empathy?

Chapter 2: The Mental Health Impact of Fear-Based Leadership

The mental health implications of this traditional management style are significant and far-reaching.

Employees subjected to chronic stress and anxiety suffer from burnout, a condition so prevalent that the World Health Organization (WHO) has officially recognised it.

But burnout is just one piece of a much larger issue.

Employees who are mentally unwell are less productive, less engaged, and more likely to take time off work.

According to data from Thrive Global, the cost of poor mental health to the global economy is estimated to be over $1 trillion per year in lost productivity back in 2019. The figure is probably higher today.

Yet, many leaders still view mental health as a personal issue rather than an organisational one.

The truth is that mental health isn’t something that stays outside the office doors. People carry their stress, anxiety, and emotional struggles into the workplace every day.

And when they feel unsupported by their leadership, the toll on their mental health deepens.

Wellness programs, while well-intentioned, often fail because they are one-size-fits-all solutions that don’t address the unique struggles individuals face.

They’re often superficial, addressing symptoms rather than causes. For employees, this creates a vicious cycle.

They feel overwhelmed by the pressures of work, unsupported by their leadership, and further burdened by the unrealistic expectations set by wellness programs that don't account for their individual needs.

Reflection Questions:

• Have you ever felt unsupported or mentally drained at work?
• How did leadership respond?
• Are wellness programs in your organization truly effective, or are they just another box to check?
• What would change if leaders genuinely prioritized the mental health of their teams?

Chapter 3: What Leaders Must Do Differently

To break this cycle, leaders need to rethink their approach to mental health.

It’s no longer enough to pay lip service to psychological safety or offer generic wellness programs.

Leaders need to understand that mental health is an integral part of business performance.

The research is clear: companies that invest in mental health see a return on investment.

Thrive Global has shown that for every dollar spent on mental health programs, companies can expect a return of up to four dollars in productivity, reduced absenteeism, and increased retention.

But more importantly, leaders must genuinely care about the well-being of their people. It’s not just about offering perks or creating a fun culture—it’s about understanding the real, human struggles that employees face and creating an environment where they feel safe, supported, and valued.

One way to do this is by creating a new role within the organization: the Chief Mental Health Officer (CMHO).

This role would go beyond traditional HR functions, focusing specifically on understanding and addressing the mental health challenges employees face.

The CMHO would be responsible for creating personalised, effective mental health strategies that consider the unique needs of the workforce.

This role would also ensure that mental health is prioritised in all decision-making processes, including financial ones.

Some companies have a Chief Happiness Officer. The role often fails due to its vague objectives, definition of happiness and superficial focus on perks rather than addressing deeper issues like job satisfaction and work-life balance.

Additionally, cultural resistance and a lack of leadership support further limit the role's effectiveness, making it seem like a trendy but short-term initiative rather than a meaningful investment in long-term employee wellbeing.

Investing in mental health is not just a feel-good initiative; it’s a critical business strategy.

And talking about strategy, when was the last time you brought the topic to your board members?

Companies that genuinely care for their employees will see the benefits in the form of higher productivity, better employee retention, and a more engaged workforce.

But beyond the numbers, there is a moral imperative for leaders to care about the people they lead.

As business leaders, you have the power to shape not only the future of your company but the lives of your employees, their families, and your community.

The late Indian entrepreneur, Ratan Tata, was a man of heart who understood this. Tata’s leadership wasn’t just about driving profits; it was about uplifting people, making sure his employees were taken care of, and giving back to society.

He showed that success doesn’t have to come at the cost of humanity. His passing today (R.I.P) leave a legacy and example of a great leader.

As leaders, we need to ask ourselves: are we doing the same?

Reflection Questions:

• What are you doing today to prioritize the mental health of your employees?
• How would a Chief Mental Health Officer change the way your organization operates?
• What kind of legacy do you want to leave as a leader?
• One based solely on profits, or one that shows care for the people who helped you succeed?

Final Chapter: A Call to Action for Leaders

Leaders and CEOs, it’s time to redefine your role.

You are not just accountable to your shareholders or bottom line—you are accountable to the people who work for you, their families, and the society in which your organization operates.

Mental health isn’t a luxury or a side issue—it is central to your organization’s success.

Now more than ever, we need leaders who care, who see beyond the quarterly reports and understand that the true wealth of a company is its people.

You have the opportunity to create organisations that prioritise mental health, foster innovation, and drive success through care.

It’s time to move beyond fear-based leadership and embrace a future where mental health is a key driver of business growth and personal well-being.

Ratan Tata’s legacy reminds us that we have the power to lift people up, and in doing so, create lasting success.

So, ask yourself:

1. what kind of leader do you want to be?
2. Will you be remembered for profits alone, or for the way you cared for and empowered those around you?

Now is the time to act, to invest in the mental health of your people, and to ensure that your leadership leaves a positive, lasting impact on the world.

Your success—and theirs—depends on it.

WHO mental health campaing -> https://www.who.int/campaigns/world-mental-health-dayThe

Chief Mental Health Officer skills

Here are five key characteristics to look for in a servant leader acting as a Chief Mental Health Officer:

1. EMPATHY: Deeply understands and connects with the emotional and mental needs of employees, showing genuine care and concern for their well-being.
2. ACTIVE LISTENING: Priorities listening to employee concerns without judgment, creating a space where individuals feel heard and valued.
3. EMOTIONAL INTELLIGENCE: Demonstrates a strong ability to manage their own emotions while understanding and responding effectively to the emotional needs of others.
4. ADAPTABILITY: Recognises that every individuals mental health journey is unique, and adjusts approaches and strategies to meet diverse needs.
5. COMMITMENT TO PERSONAL AND ORGANISATIONAL GROWTH: Focuses not just on individual well-being but on fostering a healthy, supportive organisational culture that priorities continuous improvement for everyone.

When we prioritize our well-being, everything else in our life gets better, including our products, including our performance at work, including our success. Arianna Huffington

Post note: I have been studying a lot over the last years what really wellbeing means beyond of the words work-life balance. If you want to catch my brain and ideas, just drop me a message. I am fascinated and passionated to transform people lifestyles and would love to chat.