Exhausted supervisors pose a financial risk to companies – cynical leadership suppresses team work engagement

The well-being of a supervisor is reflected through supervisor-subordinate relationships in employee motivation and performance, and consequently, in the company’s competitiveness. 

In his doctoral research at the University of Vaasa, Project Researcher Jussi Tanskanen demonstrates an exhausted leader lacks the resources to maintain high-quality relationships with subordinates, leading to a collapse in employee dedication. 

This phenomenon is particularly pronounced in today’s intensive work environment and remote work settings.

The continuous intensification and change in working life place heavy pressure on organisations. Jussi Tanskanen’s doctoral research in the field of management provides new insights into how investing in the quality of supervisor-subordinate relationships is an effective way for organisations to improve performance and employee well-being. 

This can be achieved, for example, by supporting the well-being of managers. High-quality relationships with subordinates create work engagement, which has far-reaching effects.

At its best, work engagement is the feeling that it is a pleasure to tackle one's tasks and that the work provides energy. 

But the study reveals a harsh chain reaction: a supervisor’s exhaustion and cynicism reflect directly onto their relationships with subordinates. 

When a supervisor lacks the resources for genuine interaction and compassion, work engagement fades throughout the entire team. This cycle of ill-being eventually weakens the performance of the entire organisation, Tanskanen shows.

High-quality relationships buffer against work intensity

The research shows a high-quality bilateral relationship with a supervisor is a significant resource for an employee. 

Thanks to a good relationship, work efforts are perceived as lighter and rewards as greater. In a poor relationship, communication remains formal, which can lead to perceptions of unfairness and a divided team.

Tanskanen emphasises organisations must support the well-being of supervisors and grant them sufficient decision-making power regarding rewards.

Supervisors must have the resources to reward their subordinates with more than just money, such as through appreciation and autonomy.

If a supervisor is merely a middle-management executor without room to maneuver, trust in the relationship suffers. 

Remote work further highlights this need; as peer relationships among colleagues become thinner, the supervisor becomes the employee's primary link to the entire organisation.

Dissertation

Tanskanen, Jussi (2026) High-quality leader-member exchange relationship as a key to employee work engagement. Acta Wasaensia 581. Doctoral dissertation. University of Vaasa.

https://osuva.uwasa.fi/items/79d2bc19-2ac2-4d76-9b95-7940f237a4d7

How UK Businesses Can Improve Employee Happiness and Productivity

Discover practical strategies UK SMEs and larger companies can use to improve employee wellbeing, boost productivity, and create a happier, more engaged workforce.

For SMEs and larger corporations alike, improving working life isn’t just good ethics — it’s good business. 

Employees who feel valued, supported and trusted are more productive, loyal and engaged.

Here are the essentials:

1. Build a Culture of Respect

Encourage open communication, listen to feedback, and recognise contributions. Trust reduces micromanagement and increases accountability.

2. Offer Flexible Working

Hybrid models, flexible hours or compressed weeks can significantly reduce stress and improve morale — often at little cost.

3. Prioritise Wellbeing

Support mental and physical health through realistic workloads, access to wellbeing resources, and leadership that models healthy boundaries.

4. Invest in Development

Training, mentoring and clear career progression keep staff motivated and reduce turnover.

5. Recognise Achievement

Simple gestures — public thanks, small rewards, milestone celebrations — can have a powerful impact on morale.

6. Strengthen Leadership

Good managers communicate clearly, lead fairly and support their teams. Poor management remains one of the main reasons people leave jobs.

The Bottom Line

When employees thrive, productivity rises, absenteeism falls, and recruitment costs decrease. Whether you’re running a growing SME or a large corporate operation, investing in workplace happiness is a strategic advantage — not a luxury.

People with positive work relationships are more likely to engage in proactive behaviour at work

Employees with positive work relationships are significantly more likely to take proactive action, according to new research, conducted by researchers at Trinity Business School, Dublin City University Business School, Alliance Manchester Business School and ESSEC Business School.

The study shows proactive behaviours, such as anticipating problems, preventing issues before they escalate, and improving day-to-day processes, are vital across workplaces but are often constrained when staff fear negative consequences for speaking up or stepping beyond their formal roles.

The research analysed data from 246 staff nurses nested in 35 units across four hospitals in Ireland. Nurses provided data on relational experiences and team relational coordination, while unit managers independently rated each nurse’s proactive behaviour, ensuring greater objectivity and reducing bias.

The study found that positive relational experiences boosted employees’ role-breadth self-efficacy (confidence to take on a wider range of responsibilities) with a meaningful effect size of .37. This shows employees who have positive relationships at work characterised by positive regard (being liked), mutuality (committed to by colleagues), and vitality (energy), can garner noticeable increases in their confidence to handle a wider range of tasks beyond their current role. This increased confidence was a key factor which in turn influenced whether staff engaged in proactive behaviours at work.

Timely, frequent, accurate and respectful communication (relational coordination) within teams played a major role too. Indeed, relational coordination was positively and statistically significantly linked with psychological safety climate, with a large effect size of .87. This psychologically safe climate, involving employees felt ability to speak up and question things without being punished or humiliated in the team, in turn, positively influenced their willingness to engage in proactive behaviours at work.

Professor Steven Kilroy from Trinity Business school, together with co-authors, emphasised the central role of workplace relationships in shaping proactive behaviou told That's Business: “Relationships are effectively the nervous system of an organization, which affects how individuals think, feel, and act when they are at work,”. 

They added that “positive work relationships are important for encouraging proactivity because they endow individuals, through affirmation and more general positive reinforcement, with a sense of confidence in their own ability to engage in a broader range of tasks,” underscoring how everyday interactions directly influence whether staff feel able to step beyond their formal roles.

The findings highlight the value of investing in relational culture, not just leadership, to encourage proactive behaviour. By fostering strong connections and psychological safety, organisations can boost performance, reduce errors, and strengthen workforce resilience.

Workplace stress fuels shift in employee expectations around health support

• Over half (54%) of employees view access to mental health resources as a deciding factor whether to join or stay with a company

• 48% place the same importance on stress reduction programmes

• A third of businesses still not offering stress reduction support for their staff

As workplace stress continues to rise, new data from international recruitment firm, Robert Half, reveals British workers want their employers to do more to boost their physical and mental wellbeing.

The firm’s latest Salary Guide, which reveals skills commanding salary premiums, evolving pay expectations, and the importance of emerging perks and benefits, highlights a growing expectation for companies to offer health-focused benefits as part of their employee value proposition.

This sentiment comes at a time when data from the Priory reveals 79% of people in the UK feel stressed at least once every  month.

According to Robert Half, workers are seeking support from their employers to help tackle the strains on their mental wellbeing.

In excess of  half (54%) have stated access to mental health resources and employee assistance programmes would influence their decision to join or stay with a company, while a further 48% are drawn to companies offering stress reduction initiatives. 

With a third of businesses still not offering any stress reduction support according to the data, it’s clear tackling workplace burnout has become an urgent priority.

Supporting employee wellbeing through physical health initiatives also key

On top of the mental health support workers are seeking, a large number have also indicated a desire for additional perks to help improve their physical health. 

49% of employees say access to gym memberships influences their decision to join or stay with a company. Over a third (36%) also value in-office physical activities such as yoga and group exercise sessions, which 41% of employers currently don’t offer.

For employees working remotely, there also remains a desire for perks to keep them active. 36% of respondents indicated that access to virtual physical activity platforms is desirable, while 42% of employers still don’t feature this in their perks and benefits packages. 

Amid rising concerns about burnout and work-life balance, these findings underscore a clear call to action for businesses to prioritise health-focused benefits as a core part of their employee offering.

Matt Weston, Senior Managing Director UK & Ireland at Robert Half, told That's Business: “This data reinforces what we’ve long believed, employee wellbeing must be at the heart of every organisation’s culture. 

"Here at Robert Half, we’ve made meaningful investments in mental health resources, physical activity initiatives and flexible benefits to support our teams. When businesses prioritise wellbeing, they don’t just retain talent, they empower people to thrive.

“These findings reflect a broader shift in employee expectations, where wellbeing is no longer seen as a perk but a priority. With wellbeing clearly now a key factor in talent attraction and retention, companies that embrace holistic support for their workforce are better positioned to succeed in today’s competitive landscape.”

https://www.roberthalf.com/gb/en

Employees must balance these three basic needs to stay motivated

Employees experience the greatest motivation and wellbeing when their three key psychological needs are balanced, finds a new study led by Manchester Metropolitan University Business School:

• Autonomy: Having the independence to make decisions

• Competence: Feelings of mastery or efficiency

• Relatedness: Feelings of connection and belonging

Drawing on the Self-Determination Theory (SDT), the study explores how support from leaders and colleagues can fulfil these needs and enhance overall wellbeing.

The researchers conducted a diary study of 85 employees across 10 work days, finding that wellbeing is enhanced when all three needs are satisfied equally, rather than when just one or two are prioritised.

For example, if an employee feels autonomous but lacks social connection, their well-being may improve more by addressing the social connection need rather than further increasing autonomy.

The study also found that managers and colleagues can support in different ways. Leaders are better at supporting autonomy and competence, while colleagues are more effective at fulfilling the need for relatedness.

“We find employees experience the highest levels of balanced needs satisfaction on days where they receive both higher leader and colleague support,” Dr Ioannis Kratsiotis, Lecturer in Organisational Psychology at Manchester Metropolitan University Business School told That's Business.

Finally, they found that positive experiences at work, such as balanced needs satisfaction and positive emotions, can positively influence well-being at home, improving vitality and overall well-being.

The study offers practical tips for organisations:

1. Leaders should focus on supporting the least satisfied need to achieve balance, rather than over-emphasising already fulfilled needs.

2. Encourage teamwork and social interactions to enhance relatedness.

3. Implement policies that promote balanced support, such as mentoring, training, and collaboration opportunities.

The research, led by Dr Ioannis Kratsiotis alongside colleagues from Trinity College Dublin, Neapolis University Pafos, and Bergische Universität Wuppertal, highlights the interconnected nature of work and home life, and draws attention to the vital roles that colleagues and managers play in enhancing employee motivation.

Employees need new skills to make the energy transition a reality, say experts

Our working life is changing at a faster pace than ever before, and so too are the competencies employees need to develop, says Tom Lindholm, Managing Director of Aalto University Executive Education and Professional Development (Aalto EE).

This was a central focus of Aalto EE’s event “Making Energy Transition a Reality – Closing the Competence gap,” which Lindholm opened in December 2023.

Drawing on insights from the World Economic Forum and a report by the Technology Industries of Finland, Lindholm says workforces must gain broader competencies and learn new skills instead of simply updating existing ones.

Throughout the event, many speakers highlighted the importance of long-term and systemic thinking, the ability to see the big picture and build collaborations to solve complex problems.

Guest speaker Tuukka Hartikka, Head of BU (Hydrogen and Power to X) from Helen Ltd spoke about the energy transition from an energy company’s point of view.

He said the rapid development of AI and technologies are major factors driving the need to re- and upskill employees, in addition to the climate crisis.

During the panel discussion, Ulla Heinonen – Director, Green Growth at the Confederation of Finnish Industries EK – emphasised the importance of taking care of young people’s skills in basic education and having all children and adolescents on board.

Ismo Laukkanen, Head of Learning and Development at ABB, advocated thinking about what support and funding can be provided for re- and upskilling nationally.

Other panellists were Annareetta Lumme-Timonen, Investment Director at Solidium, and Johanna Fräki, Head of Open Innovation and Innovation Marketing at Neste. The panel was moderated by Ulla-Maija Uusitalo, Sales and Account Director at Aalto EE.

Strategies for Building a Strong Corporate Culture

Corporate or company culture is the invisible force that drives organisations forward. A strong company culture can lead to increased employee satisfaction, better teamwork, and improved business outcomes. 

It sets the tone for how employees interact, how decisions are made, and ultimately, the company's overall success. In this blog post, we'll explore strategies for building a strong company culture that can help your organisation thrive. And please be aware these ideas are relevant for all organisations be they large corporate entities, newer companies, charitable concerns, etc.

Define and Communicate Core Values

The foundation of a strong company culture begins with well-defined core values. These values should reflect the company's identity and be more than just words on paper. They should guide decision-making and behaviour. Communicate these values clearly and regularly to all employees, and ensure that they are integrated into daily work life. When everyone understands and shares these values, it fosters a sense of unity and purpose.

Lead by Example

Leaders play a pivotal and vital role in shaping company culture. Their actions and behaviours set the standard for employees to follow. Leaders should exemplify the core values and principles the company upholds. When employees see that leadership is committed to the company culture, it encourages them to do the same.

Promote Open and Transparent Communication

Clear, open, and honest communication is absolutely vital for building a strong company culture. Employees should feel comfortable sharing ideas, providing feedback, and addressing concerns. Establish communication channels, such as regular team meetings, suggestion boxes, or digital platforms, to encourage open dialogue. Act on the feedback received to show that employee input is valued.

Encourage Collaboration and Teamwork

Collaboration and teamwork are integral to a healthy work environment. Encourage employees to work together, share knowledge, and support one another. This helps build trust, fosters innovation, and creates a sense of unity among the team. Promote cross-functional teams and projects to break down silos and facilitate collaboration.

Invest in Employee Development

A company that invests in its employees' growth and development not only retains talent but also fosters a culture of learning and improvement. Offer training opportunities, mentorship programs, and career development paths. When employees see that their organisation is committed to their growth, they are more likely to reciprocate with loyalty and dedication.

Recognise and Reward Achievements

Employee recognition is a fundamental aspect of a strong company culture. Acknowledge and celebrate individual and team achievements. This recognition can be both formal, such as performance bonuses or awards, and informal, like a simple "thank you" for a job well done. Recognising hard work and dedication motivates employees and reinforces positive behaviour.

Foster a Good Work-Life Balance

A company that values work-life balance demonstrates that it cares for its employees' well-being. Encourage flexible working arrangements, offer mental health support, and promote a culture where taking time off for personal reasons is encouraged. When employees feel that their work is aligned with their personal lives, they are more likely to be content and productive.

Embrace Diversity and Inclusion

A diverse and inclusive workforce contributes to a rich and vibrant company culture. Embrace diversity in all its forms, including gender, race, age, and background. Create a safe and inclusive environment where all voices are heard and valued. This not only improves employee morale but also enhances creativity and innovation.

Building a strong company culture is an ongoing process that requires dedication, commitment, and effort from both leadership and employees. When a company invests in creating a positive culture, it reaps the rewards in the form of improved employee engagement, increased productivity, and long-term success. By defining core values, fostering open communication, and supporting employee development, your organization can create a culture that sets it apart and propels it to greater heights.