By Lord Mark Price, above, Author of ‘Happy Economics’ and Founder of WorkL
The influence of leadership on employee wellbeing is key to a happy workplace. Negative leadership style can significantly impact an employee’s mood, leading to decreased productivity, increased absence from work, and higher turnover rates. Understanding why bad bosses put us in a bad mood is essential for addressing the wellbeing challenges faced by employees and applying effective solutions. Let me share some thoughts on this, drawn from my 40-plus years as a leader in business, where I’m currently running the leading employee experience platform, WorkL.
The Impact of Bad Bosses on Employee Mood
Bad bosses often exhibit behaviours such as poor communication, lack of recognition, micromanagement, and unfair treatment. These actions can lead to a toxic work environment, causing employees to feel undervalued, stressed, and disengaged. When employees perceive that their efforts are not acknowledged or that they are not trusted to perform their duties, it can result in frustration and a decline in morale. In turn, this creates a high Flight Risk for employees at an organisation, meaning a low retention rate.
Moreover, inconsistent or unclear communication from leadership can create confusion and anxiety among employees. Without clear guidance, employees may struggle to understand their roles and expectations, leading to decreased confidence and job satisfaction. Over time, these negative experiences can accumulate, resulting in chronic stress and burnout.
Wellbeing Challenges Faced by Employees
Employees today face numerous wellbeing challenges, many of which are aggravated by poor leadership. These challenges include:
- Stress and Burnout– Continuous exposure to high-pressure situations without adequate support can lead to physical and mental exhaustion.
- Lack of Engagement– When employees feel their contributions are not valued, they may become disengaged, leading to decreased productivity and creativity.
- Poor Work-Life Balance– Unreasonable demands and expectations can encroach on personal time, making it difficult for employees to maintain a healthy work-life balance.
- Health Issues– Chronic stress can lead to various health problems, including anxiety, depression, and cardiovascular issues.
Here are five key other issues that can impact our happiness at work:
- Mundane and Repetitive Tasks – Doing the same unchallenging tasks every day can lead to boredom, disengagement, and a lack of motivation. Employees thrive when they feel their work is meaningful and stimulating.
- Toxic Workplace Culture – A negative work environment with office politics, gossip, or poor leadership can create stress and dissatisfaction. Toxic teams can drain morale and make work feel hostile rather than collaborative.
- Lack of Flexibility – Rigid work hours and policies can make it difficult to maintain a healthy work-life balance. Employees today value autonomy as it brings out empowerment, whether through remote work, flexible hours, or personal time for family and wellbeing.
- Poor Recognition and Growth Opportunities – When employees feel undervalued or stuck in their roles without progression, their motivation decreases. Recognition, promotions, and development opportunities are key to workplace happiness.
- Unrealistic Workloads and Burnout – Constant pressure, excessive workloads, and unrealistic expectations can lead to stress, anxiety, and eventual burnout. Sustainable workloads and clear expectations are essential for long-term satisfaction.
The Role of Leadership in Employee Wellbeing
Leaders play a crucial role in shaping the work environment, including employee wellbeing. By modelling positive behaviours, such as empathy and active listening, leaders can set the tone for a supportive workplace culture.
It’s essential for leaders to be self-aware and open to feedback. Receiving input from employees can provide valuable insights into improving employee wellbeing. Additionally, leaders should be committed to their own development, continually looking to enhance their leadership skills to better support their teams.
My Six Steps to Workplace Happiness are fundamental to an employee’s happiness- Wellbeing, Job Satisfaction, Reward & Recognition, Information Sharing, Empowerment, and Instilling Pride. I suggest that employers should review these six areas for employees and look at solutions for the areas that they might be lacking in happiness;
- Reward and Recognition – Every member of an organisation should benefit from its success. A fair salary is essential—no amount of praise can compensate for underpayment. Your compensation structure should meet expectations and motivate employees to go above and beyond.
- Information Sharing – Withholding information can make employees feel undervalued and disconnected from the business. For a team to perform at its best, transparency is essential. Employees at all levels should have a clear understanding of the business, its strategy, performance, customers, and competitors.
- Empowerment – Empowering employees means involving them in decision-making, valuing their ideas, and integrating their feedback into the company’s strategies. Everyone brings unique experiences and perspectives to the table, and only by considering all views can a team achieve the best possible outcome. While individuals may not be perfect, together, the team can be.
- Wellbeing – Employee wellbeing encompasses physical, emotional, and financial health. Addressing all three areas leads to improved engagement and productivity. A positive workplace culture can reduce absenteeism, as engaged employees tend to be healthier and more committed.
- Instilling Pride – Employees who take pride in their work and workplace naturally become advocates, sharing their positive experiences with colleagues, potential hires, customers, and the community. Their pride will be evident when they talk about where they work. Building this sense of pride goes beyond motivational talks or performance reviews—it’s about cultivating an environment where employees truly enjoy and take pride in their roles.
- Job Satisfaction– A range of factors influence job satisfaction, but two stand out; opportunities for personal growth and the quality of the employee-manager relationship. Employees are an organisation’s greatest asset, and high engagement is essential for success. Research shows that respectful treatment and trust between employees and leadership are key drivers of satisfaction. Poor relationships with managers are often the top reason employees leave, regardless of the company’s brand strength.
The mood and wellbeing of employees are significantly influenced by the quality of leadership. Bad bosses can create a negative work environment, leading to various challenges for employees. However, by implementing strategies that promote open communication, recognition, work- balance, professional development, and mental health support, organisations can create a positive work environment. Effective leadership is at the heart of employee wellbeing, underscoring the importance of leaders who are committed to the wellbeing of their employees.
Lord Mark Price is the founder of WorkL and WorkL for Business, and author of Happy Economics: Why The Happiest Workplaces Are The Most Successful (published by Kogan Page, out now).