Good Leaders, Great Workplaces – The Link Between Leadership and Wellbeing

At CoLEAD, we know leadership isn’t just about setting direction or hitting targets. It’s about creating the conditions where people can thrive, because when people thrive, organisations and communities do too.

Your workplace culture, your productivity, and even your bottom line are all shaped by leadership. The way leaders connect, communicate, and care directly impacts the wellbeing of employees, and in turn, the performance and resilience of the whole organisation.

Why Leadership Matters for Wellbeing

Research shows that leadership behaviour influences far more than day-to-day output. Leaders set the tone for trust, respect, and collaboration. They can ease stress, reduce burnout, and build confidence, or if absent or ineffective, they can create environments where pressure and disengagement grow.

Many of the most impactful leaders use transformational leadership behaviours. They inspire a shared sense of purpose, act with integrity, show genuine care for individuals, and encourage creativity and problem-solving. These aren’t “soft skills”, they are strategic tools that increase commitment, capability, and connection.

The Ripple Effect on Organisations

When leaders champion wellbeing, they do more than make people feel good. They strengthen the organisation’s ability to adapt, deliver, and sustain success. Healthy, engaged employees are more productive, more loyal, and more likely to innovate.

In workplaces where wellbeing is prioritised, research highlights:

• Lower absenteeism and turnover

• Higher job satisfaction and morale

• Better collaboration and communication

• Stronger alignment to organisational goals and values

Simply put, wellbeing isn’t a “nice to have”, it’s a performance driver.

The Leader’s Role in Making It Happen

Leaders make the biggest difference when they:

• Model the behaviour: Living the values they promote.

• Communicate with clarity and optimism: Helping people see the bigger picture and their place in it.

• Invest in relationships: Building trust through listening and genuine engagement.

• Empower their teams: Creating space for autonomy, creativity, and growth.

As seen in successful workplace wellbeing programmes, leadership commitment at all levels, from executives to middle managers, to the receptionist, is essential. Leadership in this instance isn't about signing off budgets; it’s about being visible, consistent, and personally engaged in creating a culture where wellbeing can flourish.

Wellbeing as a Leadership Legacy

The leaders who make a lasting impact are those who understand that performance and wellbeing are intertwined. By embedding care, connection, and collaboration into their leadership, they build organisations that are not only more effective today but more resilient and adaptable for the future.

At CoLEAD, we believe leadership is a collective responsibility. When we lead with wellbeing at the centre, we unlock the full potential of both people and organisations.

Relevant References

Bass, B. M., & Riggio, R. E. (2006). Transformational Leadership. Mahwah, NJ: Lawrence Erlbaum Associates.

Nielsen, K. (2015). “Impact of transformational leadership on employee wellbeing: A review of empirical literature.” Work & Stress, 29(2), 101–123.

Zula, K. J. (2014). “The role of wellness programs in the workplace.” Journal of Management Policy and Practice, 15(3), 47–54.

Harris, R., MacFarlane, A., MacFarlane, S., & Jolly, M. (2016). “Cultural safety and workforce development in Aotearoa New Zealand.” Kai Tiaki Nursing New Zealand, 22(8), 18–19.