8.0 Role of Leadership and Management
Leadership and management play a significant role in shaping employees' well-being and mental health, a fact that is especially true in the banking industry. Today’s financial landscape works a lot faster than it did a few years ago. The effect of leadership can have significant results on employee engagement. Consequently, everything is dependent on workplace culture, support, and wellness interventions in today’s world. Leaders and managers can create an environment conducive to the mental health of employees. They play an important role in maintaining the balance between the organizational needs and individual needs.
The Role of Managers in Fostering a Supportive Work Environment
Banking sector managers play an important part in experiencing employees on a daily basis. A good work environment is where there are open conversations, psychological safety, respect, and recognition. Managers are the first contact for most employees if they are stressed or burnt out, so their awareness and understanding are important. The CIPD Health and Wellbeing at Work Report (2023) states that 70% of organizations now expect line managers to support employees’ well-being, but most receive little training in doing so.
A good manager recognizes the signs of mental distress, encourages open discussion, and offers flexibility and support. According to Kelloway and Barling (2010), transformational leadership (the kind of leadership that supports, encourages, and empowers people) predicted the promotion of the psychological well-being of employees as well as engagement.
In addition, supportive managers reduce turnover intentions and enhance job satisfaction. In the banking sector, long hours and pressure to perform are common. Hereby, the managers advocating reasonable workloads, deadlines, and work-life balance directly contribute to sustained engagement and low levels of stress (Roche, Haar, & Luthans, 2014).
Best Practices for Promoting Well-Being
More and more organizations in the banking sector are gaining the strategic advantage of investing in employee well-being. Essential to implementing and sustaining wellness initiatives is leadership’s commitment. Instilling well-being into the culture of the organization and into daily management practices is a best practice.
Training and Development
It is of utmost importance to train managers to recognize and tackle mental health issues. Programs like Mental Health First Aid (MHFA), for instance, are being introduced in banks such as Barclays to equip leaders and employees to promote mental well-being (Barclays, 2022).
Promoting Work-Life Balance
Making flexible working arrangements together with creating boundaries for wound-down time is important. HSBC, a financial services company, has introduced flexible work hours and work-from-home options, which led to higher employee satisfaction.
Regular Check-ins and Employee Feedback
When managers and employees meet one-on-one regularly, it helps build trust and identify problems early on. Gallup (2023) shared that employees with frequent meetings with their managers are 3 times more likely to be engaged at work.
Recognition and Inclusion
Acknowledging employees for their accomplishments and including them boosts morale. Empowering positive mental health has a huge impact on performance, especially when it comes to being inclusive. A 2018 study by Deloitte suggests organizations that foster an inclusive environment have more innovative team players and, not to forget, hard workers.
Access to Professional Resources
Making mental health resources available, such as Employee Assistance Programs (EAP), counseling, and stress management workshops, can create a safety net for employees under pressure.
In the banking sector, where employees regularly face high demand and pressure, leadership and management play a determining role in cultivating a culture of well-being and engagement. When supervisors exhibit caring, communicate, and create a safe place for thoughts, ideas, and questions, it can be life-changing for staff members, especially in the banking sector. When organizations adopt strategic best practices such as flexible work, regular feedback, and mental health resources, they can enhance employee well-being that drives sustainable performance and engagement.
References List
· CIPD (2023). Health and Wellbeing at Work. [online] CIPD. CIPD. Available at: https://www.cipd.org/globalassets/media/knowledge/knowledge-hub/reports/2023-pdfs/8436-health-and-wellbeing-report-2023.pdf.
· Kelloway, E.K., and Barling, J. (2010). Leadership development as an intervention in occupational health psychology. Work & Stress, 24(3), pp. 260–279. doi:https://doi.org/10.1080/02678373.2010.518441.
· Roche, M., Haar, J.M., and Luthans, F. (2014). The role of mindfulness and psychological capital on the well-being of leaders. Journal of Occupational Health Psychology, [online] 19(4), pp. 476–489. doi:https://doi.org/10.1037/a0037183.
· Mental health awareness course workplace training. (n.d.). Available at: https://barclayslifeskills.com/media/14732/mental_health_awareness_course.pdf [Accessed 10 Apr. 2025].
· HSBC Holdings plc Annual Report and Accounts 2021. (n.d.). Available at: https://www.responsibilityreports.com/HostedData/ResponsibilityReportArchive/h/NYSE_HSBC_2021.pdf [Accessed 10 Apr. 2025].
· Gallup (2023). State of the Global Workplace Report. [online] Gallup. Available at: https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx.
· Bourke, J. and Dillon, B. (2020). The diversity and inclusion revolution Eight powerful truths. Deloitte Review, [online] 22(22). Available at: https://www2.deloitte.com/content/dam/insights/us/articles/4209_Diversity-and-inclusion-revolution/DI_Diversity-and-inclusion-revolution.pdf.
"This article really brings into focus the crucial role played by leadership in improving employee well-being, especially in such a stressful area as banking. It is spot-on really focused on transformational leadership as well as practical initiatives like MHFA training and flexible working arrangements."
ReplyDeleteThank you so much for your kind words! I fully agree that in demanding sectors like banking, leadership really makes or breaks the employee experience! I’m glad the focus on transformational leadership and practical initiatives such as MHFA and flexible work arrangements resonates with you. With a little effort, these small actions can have a great impact, helping create a healthier and more resilient workforce. Thanks again for engaging with the post.
DeleteThis post offers a comprehensive overview of how effective leadership and management practices can enhance employee well-being and engagement in the banking sector. The emphasis on transformational leadership and its impact on organizational culture is particularly insightful. It might be beneficial to explore specific examples of leadership initiatives that have successfully improved employee morale and productivity.
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ReplyDeleteGreat points on how leadership and management shape a supportive work environment! Managers are often the first to notice signs of stress or burnout, so it’s important they’re trained to help. I also like the focus on work-life balance and flexibility—it’s so needed in today’s fast-paced banking world. When leaders prioritize mental health, it benefits both employees and the company. Thanks for highlighting this key aspect of workplace culture! (commented by Anuradha Gunasekara)
ReplyDeleteI appreciate your valuable comment. It is true that managers can detect stress or burnout in staff, but having the right training to support the staff is important (CIPD, 2023). Moreover, to create a work-life balance in the banking sector is paramount as a result of the long hours and pressures in this industry (Roche, Haar & Luthans, 2014). In addition, when leaders monitor mental health, it is a win-win for all concerned (Kelloway & Barling, 2010). Mental Health in the Workplace I appreciate your comment.
DeleteA powerful write-up of how crucial leadership is in supporting employee well-being. Practical strategies like flexible work, recognition, and mental health training can truly transform workplace culture in banking.
ReplyDeleteThis piece offers a powerful and timely exploration of the crucial role leadership and management play in supporting employee well-being in the banking sector. The emphasis on psychological safety, open dialogue, and training for managers is particularly important given the high-pressure environment of financial services. I appreciated the inclusion of best practices like flexible work, regular check-ins, and access to mental health resources all of which are key to creating a supportive and resilient workplace culture. Thanks for sharing such a thoughtful and well-researched analysis!
ReplyDeleteThis article effectively emphasizes the importance of leadership in promoting worker well-being, particularly in high-stress sectors like banking. Managers have the power to genuinely change workplace culture when they are proactive, sympathetic, and well-trained. A happier, more engaged workforce can be achieved through simple measures like frequent check-ins, flexibility, and availability of mental health resources.
ReplyDeleteThank you so much for your thoughtful comment! You’re so right that proactive and empathetic leadership can really turn around workplace culture – especially in high-intensity environments like banking. The proof really backs it up: the CIPD Health and Wellbeing at Work Report (2023) points out that a large majority of organisations now expect their managers to play a leading role in well-being. Many however still do not have the training to do this.
DeleteSimple but intentional practices like regular one-on-one check-ins (Gallup, 2023) and flexible working days at HSBC can go a long way towards enhancing engagement and morale. Programs like Mental Health First Aid (Barclays, 2022) equipping leaders is another great example of moving from awareness into action.
Several organizations are taking measures to ensure better worker and employee engagement. We appreciate your comment on the post and your ability to articulate the issue correctly.