The Impact of Leadership Styles on Employee Mental Health and Company Performance in the Finance Industry

This study explores the effects of leadership styles on employee mental health and overall company performance in the finance sector. Theories of transactional, transformational, laissez-faire, and autocratic leadership examine how each style influences the employees’ overall well-being, job satisfaction, and their productivity, leading to the company’s success. Findings indicate that transformational leadership focusing on employee empowerment fosters engagement and resilience while other leadership styles may lead to a possible decrease in mental well-being and productivity due to lack of direction and support. The study suggests the approach in finance setting to improve both employee mental health and company outcomes, highlighting the needs for the finance leaders to balance goals with the employee-centered practices for long run success.