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by Katie Kreider

Leadership’s Role in Supporting Employee Mental Health

June 26th, 2025
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employee mental health

The mental health crisis in today’s workforce is a leadership issue, and it’s one that calls for awareness, responsibility, and action. As we continue our four-part blog series, we move from the eye-opening statistics presented in Part 1 to the vital role leaders play in fostering a mentally healthy workplace. It’s no longer optional for leadership to ignore the emotional well-being of their teams; it’s a business imperative with direct impacts on productivity, culture, and retention. 

The Power (and Pressure) of Leadership 

A staggering 70% of employees report that their manager has more impact on their mental health than their therapist or doctor, equal to the influence of their partner. That number is not just astonishing, it’s a clarion call for leaders to recognize their influence and wield it responsibly. Leaders are no longer just task managers; they are culture carriers, morale architects, and psychological safety stewards. 

Not all leaders are trained to identify and support mental health issues in the workplace. When leaders lack awareness, the entire team suffers. Burnout spreads. Productivity dips. Absenteeism rises. Resignations multiply. But there are resources and strategies available for you to become a leader who enhances the mental health environment in the workplace for your employees.  

Mental Health Is a Business Priority 

We must begin reframing mental health as a core business issue, not a personal one to be kept outside the office door. Consider these facts: 

  • 91% of employees say their mental health impacts their productivity. 
  • Mental-health-related absences rose by 33% in 2023, marking a 300% jump since 2017. 
  • Nearly 60% of workers experience moderate to severe burnout. 

In response, leaders must go beyond wellness perks like free meditation apps or yoga classes. While helpful, they are not a substitute for a psychologically safe, supportive workplace led by informed, compassionate managers. 

Training Leaders to Spot Warning Signs 

It’s essential that leaders learn to identify early signs of burnout, stress, anxiety, depression, and other mental health challenges. Early intervention can change the course of an employee’s experience. Training leaders in basic mental health awareness equips them with: 

  • The ability to spot behavioral changes like withdrawal, irritability, or declining work performance. 
  • Language to open safe, nonjudgmental conversations. 
  • Tools to connect employees with professional resources. 
  • Skills to accommodate and support employees while protecting team functionality. 

Leaders trained in mental health awareness are quicker to take action and mitigate risk—for the individual, the team, and the organization. 

Building a Psychologically Safe Work Environment 

According to Google’s “Project Aristotle,” psychological safety was the most important factor in successful teams—not the collective intelligence, experience, or skill level of the team members. 

Psychological safety means people feel safe to take interpersonal risks. They feel confident that no one will embarrass, reject, or punish them for asking for help, admitting a mistake, or expressing a concern. 

To build psychological safety: 

  • Model healthy behavior. Leaders should prioritize self-care, take breaks, and show vulnerability. 
  • Create open dialogue. Normalize conversations around mental health during check-ins, team meetings, or anonymous surveys. 
  • Encourage feedback. Invite employees to share their thoughts and needs without fear of retribution. 
  • Celebrate openness. Recognize when employees speak up or share struggles. 

The Three Pillars of Strong Mental Health Leadership 

1. Modeling 

People don’t believe what you say—they believe what you do. Leaders must model healthy behavior by: 

  • Taking time off and encouraging others to do the same. 
  • Being transparent about their own boundaries. 
  • Practicing vulnerability (e.g., “I’m feeling overwhelmed too. Let’s tackle this together.”) 

2. Connecting 

Leaders must foster genuine connections with their teams: 

  • Hold regular 1:1s that go beyond performance. 
  • Ask meaningful questions: “How are you doing—really?” 
  • Create group experiences focused on self-care and team bonding. 

When employees feel seen and heard, they’re more engaged and less likely to experience burnout or imposter syndrome. 

3. Boundaries 

Set clear expectations around roles, hours, and communication: 

  • Make it acceptable to log off after hours. 
  • Protect break times—lunches, mental health days, PTO. 
  • Clarify work responsibilities to avoid overload. 

Strong boundaries reduce stress and model sustainable work habits. 

Recognizing Mental Health as a Legal Responsibility 

Mental illness is protected under the Americans with Disabilities Act (ADA) when it substantially limits a major life activity. Employers must provide reasonable accommodations to qualified employees. This means: 

  • You can’t fire or penalize someone for having a mental health condition. 
  • You must work with them to adjust their duties, schedules, or workloads. 
  • You must treat mental health concerns with the same seriousness as physical ones. 

Reasonable accommodations might include: 

  • Flexible scheduling 
  • Extended breaks or time off 
  • Modified workloads 
  • Remote work options 

Leadership in Practice: What You Can Do 

Here are practical ways leaders can support mental health today: 

  • Normalize mental health conversations. Start check-ins with open-ended questions. 
  • Offer training. Ensure leaders at all levels understand how to support employees. 
  • Utilize resources. Promote employee assistance programs (EAPs) and mental wellness apps. 
  • Create reintegration plans. Support employees returning from mental health leave with phased responsibilities. 
  • Protect against toxicity. Monitor for gossip, bullying, and burnout. 

Culture Over Perks 

Healthy, sustainable work cultures are more effective than any single therapy or perk. Culture is how people feel when they show up to work. It’s: 

  • Do I feel respected? 
  • Can I ask for help without being punished? 
  • Will I be judged if I say I’m struggling? 

Your leadership defines these answers. 

In Closing 

Supporting mental health in the workplace is not about becoming a therapist. It’s about being a compassionate, informed leader. By recognizing signs of distress, building psychological safety, and taking concrete steps to accommodate and support your employees, you foster a culture where everyone can thrive. 

This isn’t just good leadership; it’s smart business. Because when people feel safe, supported, and seen, they do their best work. If you’d like to connect with our team on how to develop a training strategy for your leaders, we’re happy to help.  

Stay tuned for Part 3, where we’ll dive into the legal obligations of employers under the ADA and how to ethically and compliantly support team members experiencing mental health conditions. 


Make sure to subscribe to MP’s blog and stay on top of the most up-to-date news and trends in the business realm. 

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Filed Under: Payroll, Compliance Tagged With: Best HR Strategies, HR Services

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