Good mental health is absolutely essential in every company. Small businesses especially are in a unique and powerful position to improve not only their employees’ mental health but also help remove the stigma around this topic and drive change on a national scale.
One of the UK’s leading company formation agents, Rapid Formations, explores this in more detail in this article. More specifically, they examine why employee mental health matters for small businesses.
It’s the right thing to do
The main reason why employee mental health matters for small businesses is simply because it’s the right thing to do. As a UK employer, you have a legal duty of care – it’s your job to look after your staff’s physical, emotional, and mental wellbeing.
If you suspect that an employee is struggling with poor mental health, you should talk to them and find out what the company can do to support them or provide them with the resources that allow them to access professional help.
Naturally, not all poor mental health signs are visible. As a busy business owner, you also may not necessarily have the time to regularly stop and check in on everyone. That’s why it’s important to have the right practices in place that offer employees ongoing, good-quality mental health support.
It reduces absenteeism
Another reason is that it helps reduce chronic absences, known as absenteeism. According to a CIPD report, average employee absences in 2023 rose to 7.8 days, the highest in over a decade. On top of this, over a quarter of businesses say that their staff take an average of 10 sick days or more – that’s nearly twice as much as in 2020.
When assessing the reasons for these staggering hikes, mental ill health was one of the top three culprits. More specifically, stress, depression, and anxiety – the three consequences of burnout.
While one or two absences in large corporations may cause little to no disruption, that’s certainly not the case for a small team. In a new company, when one person is off sick, the wider business is directly affected; workloads intensify, deadlines are at risk of being missed, and client support can slip.
Therefore, it’s particularly important for small businesses to value and promote good mental health. This way, you can reduce absenteeism, help employees stay on top of their jobs, and continue to deliver for your clients and customers.
It contributes to a good cause
Despite a considerable spotlight on mental health in recent years, a stigma remains around talking about it. Plenty of organizations are still trying to tackle this, so by actively promoting good mental health in your company, you’re contributing to a good cause.
But it’s not just the stigma that exists, it’s also a general lack of education on the matter. Many people don’t understand certain mental health issues or have some misconceptions about them.
For instance, phobias and anxiety are recognized mental illnesses. However, many people are unaware of these, their symptoms, and just how they can affect a person’s life.
As a result of this lack of awareness, some of your employees may be experiencing mental health problems completely obliviously. If that’s the case, their professional as well as personal lives could be significantly impacted.
The good news is that small business owners are in a great position to turn this around. You can start conversations, promote openness and trust in your workplace, and provide key resources that spread awareness and encourage employees to prioritize their mental health.
To help with this, it’s worthwhile getting involved in Mental Health Awareness Week, which takes place between 13 and 19 May 2024. You can sign up as the Mental Health Foundation’s corporate partner and receive direct brand association with the largest mental health campaign in the UK.
You’ll also gain access to support for both employees and employers and other benefits to educate and help your staff with mental health issues.
You can find and retain talented employees
In the UK’s current economic climate, it’s increasingly difficult for businesses to find – let alone retain – talented employees. Unemployment initially surged during the pandemic, but the problem is that it has remained incredibly high since then.
According to a BBC article, more than a fifth of working-age adults (that’s 9.2 million people) in the UK are actively not working, nor are they looking for a job. The main reason for this, affecting a third of this inactive population, is long-term illnesses caused by mental ill health.
What does this mean for small business owners? You might struggle to recruit the right people to drive your company forward. With so many young people absent from the talent pool, your options are narrowed.
By reinforcing good mental health practices, your business can inspire skilled people to re-enter the workforce, find exciting opportunities, and improve their well-being. Once you’ve acquired talented employees, one of the best ways to retain them is to continue to promote mental health awareness, showing that you’re a responsible employer who genuinely values their staff and their health.
You’re supporting the economy
Another important reason why mental health matters for small businesses is because supports the economy. According to an AXA report, work-related stress and burnout is currently costing the UK economy £28 billion a year. This expense mainly comes from the lost working days which, as we covered earlier, are persistently high.
But also consider other associated costs – on the NHS, for example, who spend billions to treat mental health conditions. Also, the government, who has to support those who have lost their jobs due to poor mental health.
Considering that small businesses and SMEs make up 99.9% of the UK’s business population, new entrepreneurs are ideally placed to help alleviate a great deal of these financial pressures. Understandably, your budget as a small business is limited, but there are many small but effective ways to tackle this.
If you don’t already, you should motivate your team to speak up about mental health issues and seek support when they need it. Alternatively, if you can’t afford to implement a well-being program for your staff just yet, try hosting regular 1-2-1s or issuing mental health newsletters.
By proactively addressing mental health in your organization, you can make a genuine difference in people’s lives whilst supporting the UK economy.
You’re allowing your business to thrive
When your employees are happy and healthy, your business thrives. After all, its success is a team effort; it needs energy, drive, optimism, and enthusiasm in order to grow.
However, all these key factors are impacted by mental health. For example, numerous studies have revealed that one of the main consequences of poor mental health in the workplace is reduced productivity and engagement.
If you notice a disconnection in your employees and a reduction in their work output or work quality, it could be a sign of “quiet quitting”. This is where staff members emotionally disconnect from their jobs and do as little as they are contractually obligated to.
Quiet quitters simply coast through each working day – they certainly don’t go above and beyond for their employers. Not only is this dangerous for employees but also your organization.
Without inspired, purposeful workers, your company’s expansion will stall. Therefore, it’s crucial to give mental health the attention it needs and in turn, nurture your business.
You create a positive workplace culture
The average person spends a third of their life at work. In addition, for many people, their career is part of their identity.
Essentially, what we do for a living is an enormous part of our lives and it impacts us in a multitude of ways. With that in mind, small business owners are in a powerful position to support their employees by advocating good mental health and creating a positive workplace culture.
Implementing healthy practices doesn’t have to be complicated or expensive. It can be something as simple as ensuring that everyone has adequate equipment to carry out their jobs effectively. It can also take many other forms, such as:
- Flexible hours/working arrangements
- Promoting inclusivity and equal opportunities
- Offering training and development prospects
- Clear communication between departments, managers, and colleagues
- Conveying wider business goals with the whole company
- Offering a range of support resources
- Offering volunteering opportunities
- Encouraging employees to take regular time off
- Implementing an employee healthcare scheme
Of course, both employers and employees have a role to play in the company’s team culture, but the direction comes from managers and other leaders in the business. So, it’s your responsibility as the employer to navigate your company culture in the right direction.
Thanks for reading
So there you have seven key reasons why mental health matters for small businesses. By prioritizing this matter, entrepreneurs can benefit from an engaged, loyal, and productive team as well as support the economy and inspire young people to join the workforce. Thanks for reading.
Feeling inspired to start your own company and motivate your employees? Take a look at one of the UK’s top-rated company formation agents, Rapid Formations. They make company formation quick, hassle-free, and affordable. Packages start at just £12.99, to which you can add a range of post-incorporation services to ensure your new company remains compliant. Visit the Rapid Formations website or get in touch with their team to find out more.
