Why happier leaders build stronger businesses

In my years of leading organisations and studying workplace engagement, one truth has become increasingly clear; happiness and success are deeply intertwined. Happy leaders don’t just feel better, they lead better, think more clearly, inspire greater loyalty, and ultimately build stronger, more resilient and profitable businesses. Yet, too often, leadership is still viewed through the lens of endurance and sacrifice rather than wellbeing and fulfilment.

It’s time we change that narrative. Happiness isn’t a luxury for leaders; it’s a strategic advantage. That is why we created the Workplace Happiness Charter. It is a practical, evidence-based framework that allows employers and employees to understand, measure, and improve the key drivers of employee happiness, and, crucially, it provides a roadmap for improving retention. It was created to help employers put happiness, at the heart of their people strategy. It is not a vague manifesto or a box-ticking exercise. It is a rigorous, data-driven framework built around my six steps to workplace happiness:

1. Reward and Recognition – are employees fairly paid and regularly recognised for their contribution?
2. Information Sharing – do leaders communicate openly and honestly, giving people a sense of belonging and understanding?
3. Empowerment – are employees trusted to make decisions, with autonomy over how they work?
4. Wellbeing – are people supported in balancing work and life, with their physical and mental health taken seriously?
5. Instilling Pride – do employees feel proud of the organisation’s purpose, values, and impact?
6. Job Satisfaction – are people able to use their skills, grow their careers, and find meaning in their work?

Together, these six steps to workplace happiness provide a comprehensive framework for assessing and improving workplace happiness, for employees and for leaders.

Neuroscience consistently show that happiness enhances cognitive function, decision-making, and creativity. Positive emotions release chemicals that help our brains think more flexibly, solve problems more effectively, and connect more authentically with others.

In leadership, those traits are invaluable. A happy leader is more likely to remain calm under pressure, respond thoughtfully rather than react impulsively, and see opportunity rather than threat in times of uncertainty. These qualities don’t just make a leader more pleasant to work with, they make them more capable.

If a leader is anxious, irritable, or detached, that emotional state filters down. Teams mirror the behaviour and energy of those at the top. In opposition, a leader who is calm, optimistic, and grounded creates psychological safety, the confidence among employees to speak up, innovate, and take risks without fear of blame.

At WorkL, our data consistently shows that the most successful workplaces share a common thread, leaders who are visibly engaged and content in their roles. They express purpose and joy in their work, and that authenticity encourages the same in others. When leaders are happy, people follow not just because they must, but because they want to.

Despite its importance, many senior leaders find happiness elusive. The pressures of growth, competition, and constant scrutiny often lead to exhaustion, isolation, and stress. There’s a cultural expectation that leadership should be stoic, that showing vulnerability or seeking joy might undermine authority.

That’s a myth we must challenge. Unhappy leaders make poorer decisions, burn out faster, and create disengaged teams. The relentless pursuit of results without personal wellbeing leads to diminishing returns, both for the leader and for the business.

Moreover, many leaders mistake job satisfaction for happiness. Hitting targets or receiving bonuses can deliver a short-lived dopamine hit, but sustainable happiness stems from meaning, relationships, autonomy, and personal growth, the same drivers that underpin employee engagement.

The good news is that happiness, like any leadership skill, can be developed through conscious practice. It’s not about pretending everything is positive or ignoring challenges, but about creating the internal and external conditions where you can thrive.

Here are several practical steps I’ve seen effective leaders take to build and sustain happiness:

1. Reframe Success Around Fulfilment, Not Only Achievement
   Many leaders are conditioned to equate success with external validation, titles, bonuses, or shareholder returns. While those are important, they don’t guarantee happiness. Leaders who define success more holistically, including personal wellbeing, strong relationships, and meaningful impact, sustain their motivation over the long term. Purpose-driven goals are far more energising than transactional ones.
2. Create Emotional Awareness and Reflection
   Happiness begins with self-awareness. Leaders who take time to understand their emotions, stress triggers, and energy levels are better equipped to manage them.  Simple reflective habits, journaling, coaching conversations, or mindfulness practice, help leaders pause, reset, and gain perspective. A few minutes of daily reflection can prevent burnout and maintain clarity during turbulent times.
3. Prioritise Relationships Over Hierarchies
   One of the greatest predictors of happiness at work is the quality of relationships. Yet, as people ascend in leadership, their connections often narrow. They spend less time in informal conversations and more in transactional meetings.

   Reversing that trend is vital. Make time to connect with colleagues as people, not just as performers. Genuine curiosity and empathy humanise leadership and create belonging. The happiest leaders I know make it a habit to walk the floor, ask questions, and listen deeply.

4. Build Balance, Not Boundaries
   The concept of work-life balance can feel outdated in an always-on world. What matters more is integration, designing a rhythm that supports both performance and restoration. Happy leaders don’t simply work less; they work more intentionally. They delegate effectively, set realistic expectations, and protect time for rest, family, and personal growth. They understand that recovery is not indulgence, it’s maintenance for sustained performance.
5. Create Cultures That Reflect Happiness
   Individual happiness is easier to sustain in an environment that values wellbeing. Leaders can amplify their own happiness by building cultures that support others.’

Encourage open dialogue about mental health, reward collaboration as much as competition, and celebrate achievements both big and small. When people feel valued, seen, and trusted, leaders feel it too, because happiness is reciprocal.

At WorkL, we’ve spent years helping organisations measure employee happiness and engagement. What’s clear is that leaders who prioritise these metrics alongside financial ones outperform those who don’t.

If you can’t measure happiness, you can’t manage it. Simple pulse surveys, open feedback channels, and wellbeing assessments provide invaluable insight. They help leaders identify where people and they themselves are thriving or struggling.

Embedding happiness into leadership development programmes is also critical. We should train leaders not just in technical skills but in emotional intelligence, empathy, and self-care. Leadership is as much about being as it is about doing.

The commercial impact of happier leadership is well-documented. Studies show that teams led by positive, emotionally intelligent leaders are up to 20% more productive and significantly less likely to leave their jobs.

Happier leaders create trust, which drives engagement. Engaged employees provide better customer service, innovate more readily, and create stronger bottom-line results. It’s a virtuous cycle and what I call Happy Economics.

Moreover, happiness enhances reputation. In an age when employees, customers, and investors all value authenticity and purpose, a visibly happy, values-driven leadership team becomes a powerful differentiator.

When I reflect on my own career, from my years leading Waitrose to founding WorkL, the moments of greatest success were always those fuelled by joy, not pressure. Leaders are often told to carry the weight of the world, but the truth is, teams don’t need heroes. They need human beings who inspire by example, who show that success and happiness are not mutually exclusive.

I’ve seen how a happy leader can transform a business: unlocking creativity, loyalty, and purpose across every level. And I’ve also seen how burnout and cynicism at the top can quietly erode even the strongest organisations.

Written by Lord Mark Price. Have you read?
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