The Ripple Effect of Mental Health Policies on Workplace Culture
- Amanda Lee
- Apr 28
- 2 min read
Updated: 1 day ago
Strong workplace policies around mental health do more than support individual leaders — they shape the entire culture of an organisation.
When women in leadership are given the flexibility and support they need to manage both professional and personal demands, it creates a ripple effect that benefits all employees. Teams see firsthand that wellbeing is prioritised, encouraging healthier work-life balance across every level of the organisation.
According to the OECD Employment Outlook 2023, companies that introduced mental health and family support policies saw a 15% increase in employee retention and a 9% improvement in leadership satisfaction rates. These results show that supportive policies are not just a 'nice to have' — they are a competitive advantage.
Importantly, these policies also drive better gender equity outcomes. When women are empowered to lead without sacrificing their health, it breaks down barriers for the next generation of leaders to step forward confidently.
Creating policies that actively support mental health is not a one-off initiative — it is a commitment to building workplaces where leadership is sustainable, inclusive, and human.
The question is no longer if organisations should act — but how fast they are willing to move.
On Mental Health and Leadership
An organisation's strength lies not in the resilience of a few, but in the wellbeing of all."— Dr. Jane Dutton, Professor Emerita, University of Michigan (specialist in organisational psychology)
On Workplace Culture
"Culture is not just one aspect of the game — it is the game. In the end, an organisation is nothing more than the collective capacity of its people to create value."— Lou Gerstner, former CEO of IBM (quoted in Who Says Elephants Can’t Dance?, 2002)
On Mental Health Support at Work
"Creating environments that protect mental health is an act of leadership itself."— Kelly Greenwood, CEO of Mind Share Partners
In the spotlight - Patagonia - Policy released in 2017
Employee benefits - Patagonia offers comprehensive health and wellness benefits, including company-paid health care, sick time, paid maternity and paternity leave, and access to on-site child care at certain locations. Patagonia provides financial support to employees in need and emphasises the importance of supporting families through various benefits.
Employee Retention—Costs Recouped: 30%
From Rose Marcario: Our Company Policies for Families Aug 25, 2017
"Turnover costs (of losing an employee and training a replacement) include lost productivity while the position is vacant, plus recruitment, relocation, and training time. This can range from 35 percent of annual salary for a nonmanagerial employee, to 125 percent of salary for a manager, to a couple of years’ pay for a director or vice president. In the United States, 20–35 percent of working mothers who give birth never return to their previous job.
At Patagonia, for the past five years, we’ve seen 100 percent of moms return to work after maternity leave. Moreover, the availability of on-site child care remains important for allowing mothers to breast-feed infants on demand. For the past five years, our turnover rate for parents who have children in the program has run 25 percent less than for our general employee population."

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