Unlocking Transformational Leadership: Fostering Psychological Safety to Enhance Employee Well-being

Abstract

This study explores the important role of industrial psychology in enhancing employee well-being through a comprehensive approach that balances productivity and mental health. In addition, this study looks at the growing need to integrate mental, emotional, and environmental factors in the workplace to promote a healthy and productive workforce. Despite the growing focus on mental health challenges, there is still a gap in the systematic application of industrial psychology principles to improve both well-being and performance. However, this study’s purpose is to investigate the impact of leadership styles, work-life balance policies, and the mental health support programs on employee satisfaction, engagement, as well as productivity. Moreover, this qualitative research design was utilized through the use of case studies and literature reviews to understand in more detail how industrial psychology can be applied in different organizational settings. Among the significant results, it is possible to note that transformational leadership that creates emotional safety and professional growth is a significant factor of employee well-being. Further, the policies regarding work-life balance and the services to improve mental health were addressed as significant factors in decreasing burnout and boosting job satisfaction. Nevertheless, the stigma on mental health support is a hindrance to its maximum utilization. Hence, this study has drawn the conclusion that an integrated leadership, mental health support and work-life balance strategy is necessary to establish a sustainable organizational success. Furthermore, this study addresses major gaps in the literature by suggesting a comprehensive model that can be used to align industrial psychology with modern workplace issues, specifically in remote and hybrid workplaces. Briefly, this study’s results are applicable to HR professionals, managers, and policymakers in that a more inclusive way of employee well-being should be promoted.