Mental health of workforce is a significant aspect of sustainable organisational performance. The study

highlights the rising trend of mental health issues post pandemic that is creating an alarm for organisations to

address the issue on urgent basis. The study tries to identify the critical factors affecting mental health of an

employee. Inputs from published articles, research papers, global health surveys and organisational case studies

shows that mental wellbeing reduces stress, anxiety, burnout, and absenteeism and promotes greater job

satisfaction and organisational productivity. The study concludes that organisations should integrate mental

health and wellbeing initiatives into strategic practices to build a resilient and productive workforce for greater

competitive advantage.

personal and workplace resources to successfully manage the challenges they face. Organizations that support

employees' physical, emotional, social, and professional needs create a healthier, more engaged, and more

productive workforce.

Mental health has become an increasingly important issue in recent years, as people grapple with rising stress

levels, anxiety, and depression. The World Health Organization (WHO) reported that in 2019, 15% of working

adults were diagnosed with a mental disorder. The COVID-19 pandemic highlighted the close relationship

between work and employee wellbeing. During this period, workers worldwide experienced significantly higher

levels of stress, with many reporting greater stress in 2021 than in 2020. As per reports there was a significant

increase in anxiety, depression, social isolation, job burnout, and concerns related to food, housing, and income

positively. Workplace factors such as work shifts, Job demands and workloads can push an employee towards

higher risk of mental issues. Growing mental health issues impact not only employees but also the success of the

entire organisation. In contrast, Employees with healthy psychology tend to be more motivated, engaged, and

productive in their work. They prove to be creative, and innovative, contributing positively to the organization’s

success and growth.

The 2022 WHO report highlights that the workplace is a key setting for transforming mental health.

Organizations that prioritize employee mental wellbeing not only improve the quality of life of their employees

but also enhance overall organizational effectiveness.

The theme for World Mental Health Day 2024, "It Is Time to Prioritize Mental Health in the Workplace," alarms

a global call to take action for raising awareness and strengthen public understanding about the importance of

19 pandemic on workplace mental health, and analyses the role of organisational practices in fostering a

psychologically healthy work environment. Further, the study aims to identify the critical factors influencing

employee wellbeing and organisational performance. Drawing insights from secondary research, it proposes

strategic recommendations for organisations to strengthen workplace mental health initiatives for enhancing

employee wellbeing, increase productivity, and promote organisational effectiveness.

Employee wellbeing is a holistic state of psychological and physical health that enables individuals to function

effectively, satisfy workplace demands, maintain positive interpersonal relationships and contribute effectively

towards mental wellbeing, higher motivation, greater job satisfaction and improved work

performance.Organizations can strengthen these psychological resources through strategic initiatives or practices

for improved employee wellbeing and organizational success.

Job demands-resources theory (Bakker& Demerouti 2007) proposed that employee wellbeing depends on the

balance between job demands and job resources. Higher job demands increase stress and reduce health, while

increase in job resources enhance motivation and protect employees from stress or burnout. As a result,

motivated and healthy employees contribute more towards organizational growth .

Source: The job demands–resources model adapted(pg.313) from State of the art. Journal of Managerial

According to research by Kinnunen et al. (2011), job resources have a positive impact not only on employees'

work-related wellbeing but also on their personal and family lives.

Job resources are the physical, psychological, social, and organizational aspects of a job that help employees

carried onto home life.

According to Nielsen et al. (2017), The workplace is more than just a place to perform job tasks; it can also be

a powerful environment for promoting and maintaining employees' mental health. By creating supportive

leadership, increasing employee autonomy, fostering teamwork, and ensuring meaningful work, organizations

can improve both employee wellbeing and organizational success.

Juniper (2011) in his study found that employee wellbeing is a multidimensional concept that extends beyond

the absence of stress and includes employees’ physical, psychological, and social experiences at work.

The study highlighted that wellbeing is affected by workplace factors such as organisational culture, job design,

workload, relationships, career development opportunities, and workplace facilities.

The study also suggested that organisations need to measure and manage employee wellbeing through a holistic

approach rather than focusing only on stress reduction.

mental health, psychological wellbeing, and ability to withstand workplace demands.

These findings highlight the importance of evidence-based workplace interventions in promoting employee

mental health and improving organisational outcomes. Similarly a systematic review and meta-analysis was

carried out by by Joyce et al.

(2016) on workplace mental health interventions and found that cognitive-behavioural programmes and

resilience-based interventions significantly reduced symptoms of depression, anxiety, and psychological stress

and improved employee mental health and working capacity.

The Surgeon General’s Framework for Workplace Mental Health & Well-Being has suggested five essentials

and necessary components for addressing workplace mental health and well-being that is based on human needs.

The five components proposed by them includes : Protection from harm, Connection and Community, Work-

healthful work environment, protected from physical harm, injury, illness, and death.

Second essential Connection and Community rests on two human needs that is social support and belonging.

Supportive relationships with superiors, subordinates or peers at workplace provides emotional , informational

or advisory comfort that fosters psychological psychological wellbeing of the employee.

The third essential Work-life harmony is based on two human needs autonomy and flexibility. Organizations

with higher work autonomy and less centralised control providing greater flexibility or the ability to work

provides greater job satisfaction and increased mental wellbeing. Workforce subjected to irregular schedules are

motivation, and improved mental wellbeing. Whereas feeling unimportant or ignored can increase stress and

contribute to mental health problems such as depression. Therefore, creating a workplace where employees feel

recognized, respected, and valued is essential for promoting positive mental wellbeing.

The final Essential of this Framework is Opportunity for Growth that rests on human needs of learning and a

According to the reports Gallup Global Workplace Workplace Study (2022), Supportive culture promotes higher

employee engagement which in turn increases employee performance and organisational productivity.

According to its report companies that prioritise employee wellbeing report increased profitability, lower

Skakon et al. (2010) in his study examined 35 empirical studies and concluded that supportive, transformational,

and relationship-oriented leadership styles were positively associated with better employee psychological

wellbeing, lower stress, and lesser emotional exhaustion. In addition Montano et al. (2017) reviewed 63 studies

work.

growth by organising training programs to enhance skills and career opportunities in both work-related and

personal areas of interest. One important strategy is establishing policies that limit digital communication outside

working hours, such as restricting emails and messages after a certain evening time and on weekends. This helps

employees maintain a healthy work-life balance, reduces stress and burnout, and allows them adequate time to

rest and recover. Such policies would contribute towards healthy mental health, stronger employee engagement,

and greater job satisfaction. A satisfied employee is always a healthy and efficient performer.

This study is based on secondary data and a narrative review of the existing literature, which provides valuable

insights but limits the ability to identify the direct causal factor that establishes the relationship between

employee mental wellbeing and organisational performance although few of them are considered to have an

Future studies may adopt mixed approaches to examine the mediating roles of the predicted factors in providing

a more comprehensive understanding of employee mental wellbeing and organisational performance.

Thus employee mental wellbeing is a critical determinant of organizational effectiveness. Organisations need to

recognise mental health of employees as an important asset and develop strategies for promoting healthy

working environment. Investments on mental health initiatives to be incorporated for achieving higher employee

satisfaction, better performance, and sustainable competitive advantage.