As Australian organisations adjust to the new psychosocial risk legislation, pressure at the top of the corporate tree has rarely been higher
Cost-of-living stress, geopolitical uncertainty and rapid advances in AI are converging to squeeze leaders from all sides – and the toll on executive mental health is becoming impossible to ignore.
Recent research cited by former Johnson & Johnson executive and R U OK? founding director Graeme Cowan found that 46% of managers feel nearly burned out each week, compared with 36% of employees. Managers, he says, are now “almost one in two”.
“They’re often in the middle of the sandwich,” Cowan explained. “Senior leadership isn’t at the frontline in the same way, but managers are dealing with young staff, customers, frustrations. They’re responsible for results and for people – and if they’re in bad shape themselves, they’re not in great shape to lead.”
Health and wellness consultant Roni Millard knows the consequences firsthand. After 30 years in senior corporate roles in high-pressure, performance‑driven environments, she was forced to stop when chronic stress manifested as fertility issues, high cholesterol, anaemia and ultimately a breast cancer diagnosis.
“Outwardly, I was successful. Privately, I was burning out, but I didn’t recognise it,” she said. “I realised high performance without wellbeing is unsustainable.”
Both experts agree: if organisations want sustainable performance, they need a fundamentally different approach to executive wellbeing – one that treats it as a strategic asset, not a personal luxury.
The new risk landscape for leaders
Cowan recognised that the surge in burnout isn’t happening in a vacuum. On top of the usual business pressures, leaders are grappling with the rapid rise of AI and automation, changing roles and creating deep uncertainty about the future of work
On top of this, geopolitical instability driving economic volatility and cost‑of‑living increases resulting in elevated financial stress, which Cowan noted now routinely shows up in the top three concerns when he runs anonymous polls with corporate audiences.
“Younger employees, in particular, are under real financial strain – housing, petrol prices, general cost of living,” he explained. “Those pressures don’t stop at the office door. They show up in energy, focus and mood. And the leadership team is in the best position to help address that.”
At the same time, HR leaders – often tasked with caring for the workforce – are themselves at breaking point. Cowan pointed to data showing 73% of HR professionals are considering leaving the profession entirely, while 72% say they can’t switch off.
“These are the people meant to be helping with culture and teams,” he said. “If they’re burning out, that’s a huge red flag.”
Cowan argued that executive wellbeing can’t be reduced to resilience workshops or individual grit. He framed it instead as a “great leaders care” mindset, built on three layers:
1. Self-care (fuel in the tank): Leaders need to actively manage their own energy, resilience and mental health – not as an after-hours hobby, but as part of the job.
2. Crew care (psychologically safe, engaged teams): Next comes the team environment. Managers play an outsized role here: Gallup research estimates managers account for 70% of the variance in team engagement and wellbeing.
3. “Grid zone” care (early identification and support): Finally, leaders need the confidence to spot when someone is struggling and to respond appropriately – what Cowan calls “grid zone care”.
Why “busy” is a warning sign, not a badge of honour
Millard is blunt about the consequences when wellbeing isn’t treated as core business.
“[It] shows up in burnout, presenteeism, absenteeism, disengagement and, ultimately, turnover,” she said. “Chronic stress impairs cognition, decision-making and creativity. At a human level, it damages confidence and physical health. At a commercial level, it erodes productivity, culture and brand reputation. Organisations pay for wellness one way or another, proactively or reactively.”
For leaders, the first step is deeply personal: getting clear on what health and wellbeing actually mean for them.
“If you don’t know what you’re optimising for, you won’t prioritise effectively,” Millard said. “If you need to lower high cholesterol, then walking during your lunch break becomes non‑negotiable. If stress is high, protecting sleep becomes a leadership decision, not a lifestyle choice.”
The familiar tactics – no‑meeting windows, walking meetings, protecting lunch breaks, preparing food at home – matter, but only if they reflect a deeper shift.
“I’m talking about… ensuring your cup is full, or at least brimming, so you can lead well,” she explained. “It’s about looking after yourself first, so others see you walking the walk. It’s about responding calmly rather than reacting emotionally in high‑pressure moments.”
Crucially, Millard believes organisations must stop rewarding constant busyness and start rewarding smart prioritisation.
“There are only 24 hours in the day. We all have the same hours,” she said. “If goals and KPIs are designed smartly, it becomes a win‑win: performance improves and wellbeing strengthens. When leaders embody that shift, a fantastically well culture follows.”
From “add-on” programs to embedded design
Both experts stress that relying solely on HR initiatives, EAPs or occasional wellbeing days is no longer enough – especially as psychosocial risk regulations sharpen expectations on boards and executives.
“You can’t just say, ‘People should be more resilient,’ when the system is unhealthy,” Cowan said. “Psychosocial risk assessments, claims data, EAP data – these all help you identify the big drivers of stress. Overwork, lack of control, micromanaging, bullying and harassment are very common. Once you know the issues, you can put a targeted plan in place. You can’t fix everything at once, but you can pick one or two things that make a big difference.”
Millard agrees that the real work is structural.
“Start with psychological safety and create cultures where people can speak up without fear of humiliation or career penalty,” she said. “Train leaders in nervous system awareness and conflict literacy. Reduce unnecessary bureaucracy where possible. Most importantly, embed wellness into the operational design of the organisation – it can’t be an HR add‑on, it has to be a leadership responsibility.”
For organisations unsure where to begin, she recommends starting with data and honest dialogue:
- Check staff sentiment and establish a baseline: how are people actually feeling?
- Ask employees what’s working, what isn’t and what they genuinely need.
- Revisit company values: are they being lived daily, or are they just words on a wall?
“If values no longer reflect reality, have the courage to evolve them so they resonate with staff,” she said. “That’s where real and genuine cultures begin.”
From there, the emphasis should be on a small number of high‑impact changes rather than a flurry of disconnected programs. Millard points to examples such as:
- Ensuring meetings have 10‑minute buffers to allow recovery and preparation
- Protecting no‑meeting blocks for deep, focused work
- Setting clear boundaries around after‑hours communication
- Designing realistic KPIs aligned to actual capacity
“A safer workplace isn’t created through intention alone,” Millard said. “Companies have to walk the walk.”
Rethinking who we promote – and why
One of the most powerful levers, Cowan said, is rethinking how organisations choose their leaders.
“Being promoted to a leadership role isn’t really a promotion; it’s a new career,” he added. “The success factors for being a great manager aren’t the same as being a great technician.”
He pointed to organisations that are now deliberately assessing whether potential leaders have the strengths required for people leadership: curiosity, the ability to ask good questions, a genuine interest in others, a tendency to encourage rather than control.
“Many a promotion has gone wrong because someone was excellent in their technical role but lacked the capabilities to lead people,” said Cowan. “If you want psychologically safe, resilient teams, you have to put the right people in those roles and then invest in them.”
In an era of escalating psychosocial risk, executive wellbeing is not a soft issue. It is a strategic imperative that directly shapes culture, performance and risk exposure.
