How small businesses can support their employees’ mental wellness

Changes in the workplace continue to impact businesses of all sizes, along with other challenges like economic volatility, supply chain constraints, labor shortages, inflation, and more. However, small businesses in particular are struggling to support their workforce during this challenging time. In fact, a recent MetLife study on small businesses (businesses with 2-99 employees) finds that small business employees’ job satisfaction and loyalty are lower today than during the 2008 recession.

What’s more, while stress and burnout have remained similar among employees in small and large organizations, they have accelerated for small businesses between 2021 and 2022 – with stress increasing from 34% to 40% and burnout increasing from 32% to 38%, according to the recent MetLife study.

There are steps that small businesses can take now to help support their employees. These include actions focused on employees’ holistic wellbeing, especially their mental health. Here are three considerations for employers:

Foster a positive workplace culture:

Creating a meaningful employee experience goes beyond pay or benefits, to include the company’s culture. Since the start of the pandemic, 66% of small businesses have reported that their organization has struggled to maintain an open and supportive work culture, even though roughly 3 in 4 acknowledge its unprecedented importance.

For small business owners looking to bolster their workplace culture, they should consider the role of an employee’s manager – those who often carry the torch for workplace culture and help lift employees up – and ensure these individuals are receiving the training and resources they might need to be successful. Employees who have a supportive manager report that they’re much more likely to feel mentally healthy (73% vs. 43%), socially healthy (74% vs. 46%) and resilient (71% vs. 37%). These disparities highlight the importance of supportive leadership and the positive impact it can make on workplace culture, and in turn, employee wellness.

Create flexible work models:

Over the past few years, the lines between work life and personal life blurred, contributing to an “always-on” work-life mentality. As a result of this trend, flexibility in schedules and work-from-home plans have become increasingly important to all, but especially small business employees. In fact, small business employees who say their employer provides them with the flexibility they need to manage both work and life are significantly more likely to say they feel mentally healthy (77%) than employees who don’t receive such flexibility (40%).

Many small business employers are aware that their employees are interested in flexible work schedules. For example, 37% of small business employers say they’ve implemented flex schedules to retain staff, and 32% say their workplace is very flexible about remote work. Knowing that these employees regard flexibility as a top-three factor for staying at their old job or accepting a new one, employers should consider prioritizing a flexible work environment to attract and retain talent. If flexible work arrangements are not possible, small business owners should consider alternatives such as paid time off or a wider mix of benefits to remain competitive.

Communicate benefit offerings:

Benefits education is a vital piece of supporting employees’ wellbeing, which is why small business owners should provide their employees with regular communication updates about their benefits. When small business workers understand what they get beyond pay and why it matters, they’re much more likely to feel holistically well (54% vs. 17%) and resilient (71% vs. 41%).

Beyond offering a competitive salary, small business owners can also provide programs that help promote financial wellness, especially as financial concerns are the number one driver of small business employees’ poor mental health. What’s more, employers should look to provide the education, tools and resources that their employees need to understand their benefit offerings and why they matter.

Read more: Is the deck stacked against small businesses?

While the landscape continues to change in unprecedented ways, small business owners who can focus on the areas within their control – such as culture, flexible work models and benefit offerings – will be well-positioned to support the whole employee.

Cynthia Smith, senior vice president, Regional Business at MetLife

Join our LinkedIn group, ALM’s Small Business Adviser, a space where small business owners can gather to network, have discussions and keep up with the trends and issues affecting their industries.