The Importance of Leadership in Employee Wellbeing
Written with artificial intelligence.

The first article in the Working Well series highlights the significant role that leadership plays in employee health and wellbeing. With New Zealand's sick leave rates rising to an average of 6.7 days per employee, organizations are encouraged to foster environments that prioritize mental and physical health.
Leadership's Role in Employee Wellbeing
The inaugural piece in the Working Well series from BusinessDesk, developed in collaboration with Southern Cross Health Insurance, emphasizes the crucial influence of leadership on employee wellbeing. Recent research indicates that sick leave among New Zealand workers has surged to an average of 6.7 days per employee in 2024, a stark increase from 5.5 days in 2022. This trend not only reflects a heightened awareness of health but also points to rising stress levels and burnout.
Understanding Employee Needs
Cath Lomax, Chief People and Strategy Officer at Southern Cross Health Insurance, asserts that a direct manager can significantly affect a worker's mental health, comparable to the influence of a spouse. She emphasizes that leadership styles must adapt to meet the diverse needs of employees. Different individuals have varying expectations, with some seeking inspiration and growth while others prefer clear directives. This adaptability is essential as the workplace evolves.
Recognizing and Addressing Struggles
Effective management involves recognizing when team members are struggling. Southern Cross implements structured wellbeing check-ins and anonymous health surveys to gauge employee feelings and identify potential issues early. Lomax stresses the importance of data visibility, which allows managers to address absenteeism proactively. However, she cautions against managers taking on counseling roles, advocating for clear boundaries and the use of employee assistance programs (EAP) for support.
Establishing Cultural Boundaries
Cultural boundaries, as set by leadership, play a pivotal role in workplace wellbeing. Lomax highlights the significance of protecting weekends from work-related communications, setting a precedent for work-life balance. Engagement surveys are utilized to collect anonymous feedback, helping management identify areas needing attention.
As organizations prepare for the future, Lomax advises continuous investment in leadership development and employee support. She posits that the journey of fostering a healthy workplace is ongoing, with no final destination in sight.
