Mental health disorders are a widespread challenge for Australian small and midsize businesses. Statistics from the Australian Institute of Health and Welfare show more than four million people have experienced a mental health disorder in the past year. There is also widespread burnout from the prolonged impact of COVID-19, with data from LifeWorks revealing that 45 per cent of employees report ending their workday feeling mentally or physically exhausted.
Mental health issues are costing the Australian economy up to $60 billion annually in health care, lost productivity, and many other direct and indirect costs. SMEs are particularly vulnerable with over 50 per cent of SMEs leaders stating that they have recently experienced mental health issues themselves.
While small businesses are known for their resilience, over the past years they have had to overcome numerous challenges, with COVID-19 repercussions coupled with a lack of sleep and rising workloads taking their toll. This is compounded by growing economic uncertainty, rising inflation and cost of living pressures. LifeWorks found that 46 per cent of workers are now feeling more sensitive to stress.
While these stressors won’t resolve themselves overnight, there are practical ways small-business leaders can better manage their own mental health and that of their staff.
The leader matters
SME leaders have an oversized impact on their employees’ mental health compared to larger businesses. In smaller companies, they are usually responsible for establishing the culture and processes including how to speak about mental health and what to do when an issue arises. One critical point missed by many is how essential their own mental health is. Taking care of themselves and being in a positive state of mind will help everyone and even motivate workers to adopt healthier attitudes.
Don’t create or aggravate the problem
Many leaders hold an outdated view that mental health issues are purely personal and businesses have no influence over a person’s state of mind. Mental health is complex and while the origin of mental distress is often personal, unhealthy workplaces can strongly and negatively impact workers’ health. It can also make matters much worse for those who are already vulnerable. It is critical to understand that work can have a massive impact on a person’s state of mind and that, independently of the mental crisis origin, businesses have a responsibility to help employees.
Information is key
Learning about mental health is critical for managers, and plenty of free information is available. Managers who don’t know where to start can use these questions as a guide: 1) What are the leading mental health issues, and do I understand them? 2) How can I create a healthier work environment; 3) How can I learn to detect signs of mental health problems?; 4) What are the best ways to discuss mental health and approach employees facing problems?
Be open
Mental health needs to be an ongoing dialogue, not just a conversation that takes place on RUOK day. Talking about mental health only in exceptional situations only serves to reinforce the negative stigma that unfortunately surrounds mental health issues. One of the best things a leader can do is normalise mental health by encouraging open and frequent discourse on the topic.
External resources
SME leaders don’t have to deal with mental health issues alone. In addition to reaching out to professionals such as psychologists or services (such as Employee Assistance Programs), small and midsize businesses can access government services. The recent Federal Budget allocated $15.1 million for small businesses’ mental health and financial counselling programs. States and non-profit organisations also provide additional free support.
Leaders need to be mindful of the impact these are having on workers’ mental health and lend support where needed to ensure the best possible outcomes for both workers and the business.
