A new survey from HR specialist and employment relations firm Peninsula Employsure reveals that despite over a quarter of Australian and New Zealander SMEs (in particular, 31 per cent in Australia and 28 per cent in New Zealand) seeing an increase in sickness absences because of mental health concerns (an increase of 43 per cent from 2023).
A total of 77 per cent of SMEs surveyed in Australia and 60 per cent in New Zealand are not offering mental health days to their employees, nor are they keen on offering such benefits.
“It’s common for employees to use their sick leave when they’re dealing with mental health issues, making it feel like less of a need for SMEs to have dedicated mental health days, especially if not everyone in the workplace struggles with mental health issues,” David Price, CEO at Peninsula Employsure, said.
The findings show that New Zealander employers are more likely to already offer mental health days than Australian employers, at 23 per cent. A further 16 per cent of New Zealander respondents aim to implement mental health days in the next 12 months.
“Many small businesses don’t have the resources, in terms of both capital and manpower, to offer mental health days on top of sick and annual leave entitlements,” Price explained. “Business operating costs and the risks of failure are on an upward trajectory in 2024 for small businesses. Therefore, the focus for many business owners is on survival, maintaining viability and keeping expenses down,” .
While many SMEs may not intend to introduce mental health days, some employers have shared other ways they’re addressing mental health concerns in their workplaces. These include allowing staff to take time out during work hours to see counsellors, short mental health breaks during the day to manage stress, ensuring their teams have regular and open discussions about how they’re feeling and what they can do to support each other, and the introduction of mental health first aiders, who are those who has received first-aid training to support people having mental health problems.
While 61 per cent of Australian SMEs and 62 per cent of New Zealander SMEs said that staff are speaking more openly about mental health concerns in the workplace, only half (55 per cent in Australia and 50 per cent in New Zealand) are somewhat confident their employees would disclose a mental health issue to them or their line manager.
“The data demonstrates the importance of organisations, regardless of size, having effective mental health strategies in place to foster an environment where people feel supported, valued, and listened to,” Price said. “Workers are under no obligation to disclose if they are struggling with mental health issues, so businesses need to offer alternative pathways for them to seek assistance and address the challenges they encounter.
“Good mental health strategies start at the leadership level, with positive impacts trickling down to team members,” he added. “This involves providing leaders with coaching and resources, empowering them with actionable steps to proactively address and manage mental health in the workplace. Third party providers can support here.”
On the upside, SMEs are witnessing improvements in how mental health is being managed in their workforce. with 52 per cent in Australia and 56 per cent in New Zealand seeing a greater emphasis on employees prioritising work-life balance.
“Employees who have a healthy work-life balance are less stressed, more productive, and more likely to stay in their role and thrive – employers that don’t protect this balance will see higher turnover and adverse business outcomes as a result,” Price concluded.
