Employee mental health has become a critical issue in the modern business environment, especially for small and medium enterprises (SMEs).
While large corporations often have extensive resources dedicated to employee wellbeing, SMEs may face unique challenges due to limited budgets and smaller teams.
However, creating a supportive environment that values employee well-being can significantly enhance productivity, employee retention, and overall workplace culture.
Let’s have a look at why mental wellbeing is so important for all workers (including bosses and managers), and practical ways SMEs can support mental health.
Why mental health matters
According to mental health support and education organisation, Beyond Blue, around 20% of Australians experience mental health challenges.
Mental health encompasses emotional, psychological, and social well-being, affecting how employees think, feel, and perform in their jobs.
Poor mental health has been proven to lead to decreased productivity, increased absenteeism and presenteeism (being at work but distracted or disengaged), and higher turnover rates.
The World Health Organisation estimates that globally, 12 billion working days are lost every year to depression and anxiety at a cost of US$1 trillion per year in lost productivity.
Excessive workloads, understaffing, long or inflexible hours, unsafe working conditions, poor organisational culture, and harassment or discrimination can all pose a risk to employee mental health.
For SMEs, where each team member often plays a critical role, ensuring that employees are mentally well and supported is especially vital for business success.
Benefits of promoting mental health in SMEs
Enhanced productivity and focus
Employees with good mental health are better able to focus on tasks, meet deadlines, and contribute innovative ideas. Mental health initiatives such as stress management programs or offering access to counselling can reduce anxiety and improve concentration at work.
Reduced absenteeism and presenteeism
Mental health issues are a leading cause of absenteeism, but presenteeism is also costly. Employees who are mentally exhausted may be physically present but perform well below their capacity.
Providing resources for mental well-being helps reduce both.
Improved employee retention
SMEs often rely on close-knit teams where losing even one person can have significant impacts. Addressing mental health helps prevent burnout and turnover, allowing companies to retain valuable staff.
A mentally healthy workplace also attracts top talent, creating a competitive advantage.
Fostering a positive workplace culture
Promoting mental well-being fosters a culture of care, inclusivity, and mutual support. When employees feel valued and supported, they are more likely to collaborate effectively and maintain positive relationships with colleagues and management.
This directly contributes to a more resilient, adaptable, and motivated workforce.
Practical steps for SMEs to support mental health
Create open communication channels
Encouraging employees to talk openly about mental health without fear of stigma is crucial. Managers should be trained to recognise signs of stress and provide a supportive environment for discussing mental health challenges.
Flexible working conditions
Offering flexible hours or remote work options allows employees to manage their workloads more effectively and maintain a healthy work-life balance. Flexibility reduces stress and can be especially helpful for those experiencing mental health issues.
Provide access to resources
SMEs can offer mental health resources such as Employee Assistance Programs (EAPs), access to counselling services, or stress management workshops. While SMEs may not have large HR departments, even low-cost options like mental health awareness training or partnering with local health services can be highly beneficial.
Encourage regular breaks and physical activity
Physical health is closely linked to mental well-being. Encouraging employees to take regular breaks, engage in physical activity, or participate in wellness programs can help reduce stress and anxiety. Simple initiatives like walking meetings or promoting lunchtime exercise can significantly boost morale.
Lead by example
Leaders and managers in SMEs must prioritise their own mental health and set a positive example. A transparent leadership style, where mental health is openly discussed and prioritised, encourages employees to do the same.
