How Leadership & Wellness Works Together to Improve Business Performance

Genuine leadership now requires a comprehensive & integrated approach that prioritizes the well-being of both leaders and those they lead. Increasing the well-being of leaders is more than just a passing trend; it is an essential element for long-term success, enhanced productivity, and a positive workplace environment. It has been demonstrated that leadership well-being directly impacts leadership behavior styles, which positively influences team performance and well-being. As employee well-being improves, we see a reduction in turnover, reduced absenteeism, reduced conflict and greater performance. This article will explore the importance of empathetic leadership, using wellness as a leadership strategy, and practical ways to cultivate wellness in leadership. If you are looking to be a happier, healthier and more inspiring leader than this article is for you. 

Explore How to Create a More Meaningful, Purpose-Driven Life with High-Performance Coaching.

The Shift from Traditional to Empathetic Leadership

Traditional leadership is considered to be transformational, task oriented and transactional. This approach can drive results in the short-term, but it has negative effects on the stress levels and mental health of employees and team members. Modern, empathetic-lead approaches to leadership stress the importance of more relations-oriented leadership and emotionally intelligent approaches which have been long been known to improve overall performance. When leaders prioritize wellness, it strengthens their emotional intelligence, helping them better understand and regulate their emotions while empathizing with others. This is essential for better communication, conflict resolution, and cultivating a positive workplace culture. Research shows that leaders with high emotional intelligence increase the engagement and satisfaction of employees. In addition, improved leadership wellness improves leadership styles which increases follower mental health so there is a measurable trickle down effect. 

The Advantages of a Wellness-Focused Leadership Approach

Below is a list of more specific and positive impacts a wellness-focused leadership style can have on individuals, teams and organizations. 

Boosting Productivity and Creativity: Leaders who focus on wellness are better equipped to manage stress, allowing them to maintain mental clarity and focus. This, in turn, leads to improved decision-making, higher productivity, and enhanced creativity. By demonstrating healthy habits, leaders encourage those they lead to engage in similar behaviors fostering energy, creativity and good spirits. In fact, organizations that adapt wellness programs and cultures experience a 28% decrease in sick leave and a 26% decrease in healthcare costs which is of enormous benefit. 

Boosted Team Morale and Engagement: Teams led by leaders who prioritize wellness tend to experience higher morale and engagement. When leaders show genuine concern for their team's well-being, employees feel valued, motivated, and respected. This improves loyalty and reduces turnover. Employees who feel supported by their leaders are 21% more likely to remain with their companies.

Improved Collaboration and Teamwork: Emphasizing wellness helps strengthen interpersonal relationships within a team. Leaders who prioritize well-being create environments that promote collaboration and teamwork. This is a net positive boost for psychological safety and it’s been shown that collaborative workplaces can improve performance by up to 30% 

Sustained Organizational Success: Organizations that embed wellness into their leadership practices tend to achieve sustained success. By focusing on the health and well-being of both leaders and teams, companies create a high-performing, adaptable work environment that thrives even during challenges. 

Psychological Safety: The leading predictor of performance in teams is a metric known as psychological safety. The term is defined as the “belief that one will not be punished or humiliated for speaking up with ideas, questions, concerns, or mistakes. In teams, it refers to team members believing that they can take risks without being shamed by other team members.” I wrote more about psychological safety in this article which explains in much better detail. 

Integrating wellness into your leadership development strategy is crucial for building a thriving, productive, and creative workplace. Leaders who prioritize their own well-being and that of their teams foster positive change, create supportive cultures, and drive long-term organizational success. By embracing wellness, leaders unlock their full potential and that of their teams, setting the stages for a more sustainable healthier, happier, and more prosperous trajectory. 

Practical Ways to Cultivate Wellness as a Leader 

For leaders, self-care should be a non-negotiable part of their routine. By prioritizing their own well-being, leaders not only set a positive example for their teams but also enhance their ability to support others. A leader can improve their personal well-being by focusing on several key areas:

Self-Care Practices: Prioritizing regular exercise, a balanced diet, adequate sleep, and mindfulness practices like meditation, breathwork or yoga can help reduce stress and increase energy levels.

Emotional Intelligence: Developing emotional intelligence can be done by improving somatic (body awareness) reflecting on personal emotions and learning to regulate feelings effectively. When leaders stay composed their ability to make difficult decisions, direct people and navigate the challenges of business improves. 

Work-Life Balance: Setting boundaries between work and personal life is crucial. Taking regular breaks, disconnecting from work outside of business hours, and making time for hobbies and family can prevent burnout.

Continuous Learning and Growth: Engaging in ongoing personal and professional development, such as reading, attending workshops, or seeking coaching, can foster a growth mindset and enhance resilience. 

Seeking Support: Building a strong support network—whether through mentors, coaches, peers, or professional counselors—can provide valuable insights, encouragement, and guidance during challenging times. As they say, the job of a leader is quite lonely at times so these networks and support systems are crucial. 

Mindfulness and Stress Management: Practicing mindfulness, relaxation techniques, and stress management exercises can help maintain focus, clarity, and emotional stability.

Physical Health: Engaging in regular physical activity and maintaining a healthy diet are fundamental to sustaining energy and mental clarity.

Time Management: Efficiently managing time and delegating tasks can reduce stress and ensure a leader remains focused on high-priority activities.

By integrating these strategies into daily routines, leaders can enhance their personal well-being, leading to better decision-making, improved relationships, and a more positive work environment.

What Does Wellness As a Leadership Strategy Look Like? 

Surveys and feedback are really important for the proper implementation of a wellness strategy. In general, that is beyond the scope of this article, however, it’s important to note that there is no one-size fits all approach and it will require trial and error, as well as some iterations. As a general rule, conduct an initial survey with additional quarterly surveys to best understand the impact of any wellness strategy. I wrote a bit more about this topic in my article about managing stress management in the workplace which can be found here. 

Cultivate a Supportive Workplace: Research has indicated that organizations that prioritize mental health support can have a 15% boost in productivity according to the world health organization. Building a culture centered around wellness involves promoting work-life balance, offering flexible work options, and providing mental health resources. Leaders should foster open conversations about stress and mental health, ensuring that team members feel supported and heard. 

Commit to Ongoing Learning and Growth: Incorporating wellness into leadership also means engaging in continuous personal and professional development. Leaders should actively seek out learning opportunities through courses, workshops, or staying informed about the latest trends in wellness and leadership. This dedication to growth benefits both leaders and their teams. 

Contributions to ESG Goals: The Great Resignation presents a significant challenge for employers as workers leave their companies in large numbers. To address this, business leaders need to prioritize investing in the resilience and well-being of their employees, focusing on factors that impact their health, community, economic stability, education, and social identity. Supporting “the world” has little meaning if companies do not first support their own employees, especially when retaining talent is a key strategic objective. Although social well-being is a core element of ESG, many workplaces fall short in ensuring employee wellness, despite evidence showing that a healthy workforce is more productive. Research indicates that companies investing in health, safety, and environmental programs tend to outperform the S&P 500 on average.

Conclusion

Wellness in leadership not only helps leaders optimize their own performance & well-being it assists them in understanding and prioritizing the wellness of their employees. Overall, this is a major advantage for teams and organizations as we continue to evolve business practices and leadership in an unprecedented time. Change starts at the top and when leaders invest in well-being as a personal and business practice, they can create a more inclusive, healthy and successful work environment & planet. My own career as a corporate trainer, coach and wellness practitioner has led me to witness first hand. Ready to implement wellness into your leadership development strategy? Let’s connect!