Rising mental health concerns and lack of adequate support are leaving SME workers struggling alone as cost-of-living pressures mount
A new report from international wellbeing provider Westfield Health reveals that UK employees are facing increasing mental and physical health challenges, exacerbated by insufficient workplace support and the rising cost of living.
The findings, based on responses from over 2,000 workers, highlight a widening gap between what employees need and the support offered by employers.
SME workers feel the pressure alone as mental health declines
Mental health struggles are escalating, with nearly 3 in 10 (30%) employees reporting a decline in their mental wellbeing over the past year. Even with this drop, SME workers still keep their struggles to themselves. Over 60% of SME workers shared that they did not ask for help with their mental health from anyone, while only 20% asked for support from GPs and 11% from a friend or family member.
Additionally, almost three-quarters (74%) of people are concerned about rising living costs, adding pressure to an already overburdened workforce. Burnout, stress, and financial worries have also been cited as significant contributors to worsening mental health.
Productivity has also taken a hit. 45% of employees say their mental health has affected their work in the past 12 months, contributing to a rise in mental health absences, which cost UK SME employers £11.9 billion in 2023.
However, employees at SMEs are more likely to feel hopeful and stable compared to those working for large businesses.
Businesses fall short of wellbeing support
Despite the growing need for support, a third (33%) of SME workers report no access to wellbeing support at work, and where resources are available, they are often underutilised. Shockingly, almost half of SME employees with access to wellbeing programs have never used them.
The report also found that while employees at SMEs are less likely to have access to wellbeing programs, they are more likely to use them when available. 51% of SME employees used the wellbeing support offered to them compared to only 35% of workers at large companies.
“Evidence shows that happy and healthy employees are the most productive. We now urge SMEs to invest in people’s health and wellbeing, and more importantly, clearly communicate the available support to ensure employees benefit from these resources,” says Vicky Walker, Group Director of People at Westfield Health.
In fact, 66% of employees who used wellbeing support found it helpful, though 42% said they have never been asked for feedback on what they actually need. “It’s vital to collect employee data and feedback and identify key trends and needs. Regular feedback will help to measure the success of your workplace wellbeing strategy accurately,” advises Vicky Walker.
What employees at SMEs actually want from workplace support
As 42% of SME workers consider a job change within the next year, businesses face potentially massive costs—up to £47.1 billion for SMEs. To retain talent, companies need to provide the right benefits.
Nearly 4 in 10 (36%) workers at SMEs want access to private health insurance, while 23% prefer value a 24/7 GP line, and 22% would appreciate mental health days. Health check-ups (22%), access to counselling (18%), and access to a gym (19%) were also cited as valued wellbeing benefits.
Flexible working hours also rank as a top priority for SME employees choosing their next employer, more so than those from large businesses. This is no surprise, as almost 1 in 4 employees worry they’ll be forced to work more in the office and less from home.
SME workers are the most connected to their employer and company
It’s good news for SME businesses, as their workers are more likely to feel their personal values align with the company as a whole.
Almost 4 in 5 (79%) employees feel their values align with those of their colleagues, two-thirds (66%) feel aligned with their manager, and even 61% feel their values match those of the senior leadership teams.
Vicky Walker, Group Director of People, shares her final judgement on the findings:
“Offering schemes that provide free or heavily subsidised healthcare not only saves employees money but also encourages them to take preventative steps to look after their wellbeing. Ultimately reducing absence rates and boosting productivity for businesses.”
“The data paints a clear picture: employees are struggling, and businesses need to take proactive steps to address workers’ health and wellbeing. SMEs must act now. Adding comprehensive support, whether it’s mental health training, an EAP or a health cash plan, to employee benefits packages and ensuring clear communication around them will make a world of difference.”
“The cost of inaction—financially and in terms of employee health—will continue to rise unless more robust support systems are implemented.”
