Employee Well-being begins with Leader Well-being

People-centered and connecting
Given these developments, focusing on employee well-being has become a critical factor in the labor market. Not only to keep (aging) employees healthy and motivated but also because, in the absence of traditional social structures like political parties, unions, and churches, work increasingly serves as a source of meaning and connection. Employees demand more from their employers and expect a work environment that supports their well-being. Not least since well-being and room for a healthy lifestyle are crucial to aging well.
Many companies are, as a result, for now, exerting themselves for employee well-being. They are investing in flexibility, digitalization, and robotization to improve the quality of the work. They are launching diversity and inclusion programs, measuring employee satisfaction, offering coaching and vitality programs. The range of possible well-being initiatives is broad and meaningful, but as far as I am concerned, the focus is skewed towards the more ‘practical’ well-being initiatives. We still lack awareness that all this also requires fundamentally different leadership than we are used to: more connecting, people-oriented and purpose-driven. We need leaders who recognize the person behind the job description, who listen to their employees, ask their opinions and consider their individual needs. Those needs may differ for everyone. There is no one-size-fits-all. Strong leaders consciously foster a culture of openness and transparency, offer development opportunities and notice and give recognition to achievements and employee expectations. They collaborate with their teams rather than merely dictating what should be done, and how.

Authentic leadership
Leadership plays a pivotal role in employee well-being, but it only works when it is authentic, and stems from a person’s intrinsic motivation, values and needs. Some leaders reach their positions by being the brightest boy or girl in the class, repeatedly promoted for their specific expertise in a particular field. However, this does not mean they automatically are the empathetic, connecting leaders demanded today. Ultimately, though, this is the core of organizational well-being: employee well-being begins with the well-being of leaders. Leaders are, after all, also role models. Employees have a keen sense of when their leaders are not (entirely) themselves. When a leader is stressed, dissatisfied, or exhausted, this can spread throughout the team. A leader who is comfortable in his/her skin radiates positive energy and confidence and can motivate and inspire employees more effectively. Such a leader pays attention to the unique needs of team members and creates an environment where everyone feels safe to be themselves. If a leader demonstrates the importance of self-care, employees are encouraged to follow. A leader familiar with feelings of uncomfortableness is often more empathetic to the struggles of their employees, making it easier to adopt a supportive and understanding approach.

Broadening the focus on well-being
People-oriented leadership can be developed, but it is not a management skill. Leaders will have to engage in personal growth to be able to successfully guide their organizations through the current labor market transitions. The days when soft skills could be delegated to HR managers, occupational health services or psychologists are over. Leaders now need to develop their own authenticity by understanding themselves better and exploring what truly matters to them in life, and from there connect with others in the organization. Self-reflection, coaching, self-care (taking time for relaxation, exercise, sleep), a better work-life balance and setting boundaries can all help individuals improve their own well-being. Colleagues can also support each other by addressing behaviors or attitudes that might negatively affect the work atmosphere. Even given different (hierarchical) positions and roles. At the end of the day, we are all equal as human beings and should be able to engage in open, honest conversations in an informal environment. Leaders play a critical role in creating the trust and conditions that allow for this and can only succeed if the leader him- or herself feels safe and comfortable.
People-oriented leadership is also of financial benefit to organizations. As an insurer specializing in disability and other risk insurance, we are seeing a rise in (long-term) absenteeism. In addition to the effect of long covid, there is a concerning increase in serious mental health issues among people in their thirties and forties and rising addiction problems. The higher the rate of absenteeism, the higher the premiums and the greater the pressure on an already tight labor market. Connection, time, and attention for each other is incredibly important for identifying these issues early, providing support and ensuring effective intervention. People-oriented leadership may not solve every problem, but I believe it has a profound impact. 

A win-win for employees, leaders, and organizations
In summary, prioritizing employee well-being places a significant responsibility on the leadership of organizations. Of course, salary, IT systems and secondary employment conditions must be in order, but many companies already have these covered. The focus now is primarily on the impact that leaders themselves have on company culture. It is time for a more holistic approach to well-being and attention to leadership development. A leader who is comfortable in his/her skin will positively influence employee job satisfaction, motivation, productivity, and absenteeism. By investing in their own well-being, leaders are investing not only in their own happiness but also contribute to the success of their organization. This creates a win-win situation for employees, leaders, and the organization.

This essay was published in Management Scope 10 2024.