Let’s talk mental health: Supporting SME employees’ wellbeing

Employee wellbeing is the backbone of every business, and for small and medium-sized enterprises (SMEs), it’s especially critical. SMEs account for 60% of all employment in the UK – representing around 16 million people – and 50% of the private sector’s turnover.

However, research shows that SMEs are less likely to adopt a proactive approach to health and wellbeing than larger businesses. Many lack dedicated HR functions or expertise in occupational health, leading to challenges like work-related stress, absence, and high staff turnover.

Why mental health matters for SMEs

Mental health challenges affect 14% of the workforce. With SMEs having smaller teams, the impact of these challenges can ripple across the entire business, affecting physical health, confidence, productivity, and team dynamics. Without proper support, this can lead to higher sickness absence rates, difficulty retaining key staff, and additional strain on already stretched resources.

Fortunately, leaders in SMEs are often more directly involved with their teams, so there’s more opportunity to create a positive and supportive environment. This can help reduce absences, improve morale, retain talent, and improve your overall business efficiency and productivity.

And the good news?

Investing in workplace mental health doesn’t have to be complex or costly to deliver results. For every £1 businesses spend on mental health initiatives, they see a return of £5 through reduced absences, improved engagement, and greater staff retention.

So, how can your business create a mentally healthy workplace?

1. Create safe spaces for conversations

Regular check-ins between team members and leaders create a safe space for employees to share concerns and ask for support.

2. Promote a healthy work-life balance

With fewer staff, workloads can feel heavier in smaller businesses. Encourage employees to take regular breaks, limit after-hours communication, and embrace flexible working where possible. These small steps can help prevent burnout and support long-term wellbeing.

3. Provide mental health training for leaders

Equipping managers and business owners with mental health training can help them recognise the early signs of stress, offer support, and implement practical solutions quickly before they escalate.

4. Make the most of the support available

You can still provide support even if you don’t have an in-house HR team. Specialised small business support, such as our Medigold Health Protect package, can provide you with proactive and reactive health services for both management and staff, including:

• Health questionnaires for new starters
• Workforce access to Thrive, the NHS-approved mental health app
• An annual health and wellbeing events calendar
• A library of health content, webinars, and resources
• Occupational health referrals for sickness and absence management
• Support with GP and specialist medical reports
• Expert advice from our OH teams to support your health strategy.

It’s everything small businesses need to promote healthier, happier workplaces.

Get in touch here to learn more.