This thesis investigates how different leadership styles influence employees’ well-being, engagement, and psychosocial aspects of the work environment. The purpose is to gain a deeper understanding of which leadership styles promote a healthy work environment and increased employee engagement. The study is based on qualitative interviews with six employees from two different organizations. The results show that leadership plays a central role in shaping the work environment and influencing employees’ motivation, sense of security, and job satisfaction. Transformational leadership is highlighted as particularly positive, as it involves an engaged manager who communicates clearly and shows genuine care for employees. Respondents who had managers with this leadership style described high motivation and a strong sense of belonging. The relationship with the immediate supervisor also proved to be of great importance. The analysis using LMX theory showed that trust, appreciation, and open dialogue with the manager strengthen psychosocial factors such as security, participation, and engagement. The demand-control-support model was used to analyse how work demands, autonomy, and social support interact. The results showed that “freedom with responsibility” works best when combined with support from the leader. The study also found that poor leadership, where the manager is absent, does not communicate, or shows disinterest, can lead to stress, insecurity, and a loss of employee engagement. In summary, the study shows that leadership is about building relationships, creating security, and supporting employees’ well-being and engagement. In summary, the study shows that effective leadership is built on trust, psychological safety, and active support. It is about creating a work environment where employees feel seen, heard, and empowered to contribute. To create a safe and positive work environment, managers should be clear, show care, and listen to their employees.