Leadership in Times of Crisis and Mental Health

“If we want to help people quickly, we should give them a chance to catch their breath.”
— Lilly Tomlin

Does a leader’s stress affect employee stress?

Research clearly shows that leaders’ stress levels, leadership behaviour, and the quality of leader–employee relationships significantly affect employees’ mental health and wellbeing. Leader stress quite literally spills over onto employees.

Leadership styles characterised by transformational leadership contribute positively to employee wellbeing.

A good relationship between leaders and employees generally enhances wellbeing; however, when relationships become overly close, wellbeing can decline. While this may seem surprising, the explanation is simple—excessive closeness can make it harder for employees to say no and protect their personal boundaries.

Which leadership style works best in a crisis?

This crisis has become a real test for leaders worldwide—essentially a global leadership assessment centre.

What may once have been unclear is now much more visible. Outstanding leaders have emerged, both in remote and face-to-face work environments. Even before the crisis, best practices pointed to transformational leadership as a response to emerging challenges, while situational leadership enables clear task allocation and progress tracking at both individual and team levels.

Combined with a clear vision and credibility, this was—and remains—the right leadership formula.

COVID-19 has changed many things, but the core dimensions of effective leadership have not changed significantly. What has changed is the standard of excellence required. The best leaders are also the most burdened, because they are needed the most.

The most successful leaders during the COVID-19 crisis are those who lead by example, inspire through a shared vision, question existing processes, involve employees, recognise contributions, and celebrate success.

What do employees expect from leaders?

Expectations of leaders are high. Research shows that employees expect leaders to demonstrate gratitude and appreciation for their efforts.

They expect leaders to reinforce effective coping strategies, acknowledge individual differences in competencies and personal circumstances, and demonstrate empathy.

Clarity in distinguishing what is essential from what is not, setting priorities, and making effective decisions helps avoid placing additional strain on employees who are already under heavy workloads.

Awareness of employees’ differing circumstances allows leaders to make thoughtful decisions—for example, avoiding face-to-face team events when conditions do not support them, despite the emotional need for connection. This is not a time for unrealistic optimism, nor for learned helplessness. Technology offers alternative ways to foster connection in virtual environments.

This awareness also applies to deadlines and performance expectations, including the conscious choice to avoid unnecessary perfectionism.

Employees value communication, communication, communication—transparent sharing of what is known and unknown, and clear information on where and how to access additional support tailored to individual needs.

What do organisations expect from leaders?

At the same time, organisations expect from leaders what they always have—but now amplified. Leaders increasingly feel caught in the middle. Organisations expect them to act faster, standardise best practices, reduce administration, eliminate unnecessary systems, and empower employees.

How can leaders contribute to employee wellbeing?

The time to rest is when you don’t have time to rest.

Leadership competency frameworks vary slightly across authors, but most share common elements: emotional awareness, inclusion, clear definition of roles and responsibilities, and a focus on processes rather than solely on outcomes.

In practice, this means leaders should:

• Prioritise their own health and wellbeing—credibility matters

• Champion situational, transformational and visionary leadership in practice

• Build high-quality relationships that respect personal boundaries

• Support employee mental health proactively—not only by participating in HR initiatives, but by identifying needs, co-creating solutions, and monitoring their impact