New research from the Peninsula Group has highlighted the increasing impact of mental health issues on small and medium-sized enterprises (SMEs) across the globe. The HR, employment law, and health & safety consultancy surveyed 79,000 businesses in Australia, Canada, Ireland, and New Zealand, revealing a significant 140% year-on-year rise in the number of employers witnessing the adverse effects of poor mental health among their workforces.
Alan Price, Chief Operations Officer of Peninsula Group, stated, “Mental health has now overtaken other causes as the leading reason for employee absence, with an estimated 17.1 million days lost annually in the UK alone. Our research aimed to delve deeper into the pressures that SME owners face and the real-world impact that this mental health crisis is having on businesses worldwide.”
The findings are alarming, with The Lancet Commission estimating that by 2030, the global economic cost of mental health issues could reach a staggering $16 trillion. Price emphasised the critical need for employers to address mental health proactively. “Healthy employees create healthy workplaces. It is encouraging to see that more employers are becoming comfortable discussing mental health, both their own and that of their employees. However, SMEs globally are under unprecedented pressure, and the repercussions of this cannot be underestimated.”
The research also revealed a 30% increase in the number of employers grappling with poor mental health, with Canada showing the most significant disparity. Canadian employers are three times more likely to take time off for mental health reasons than their UK counterparts and twice as likely as those in Ireland. Mental health-related sickness absences have surged by 20% over the past year, with Australia experiencing the largest year-on-year increase, where 43% more employers reported rising sickness absences than in the previous year.
Despite these challenges, there has been a notable increase in the support measures provided by businesses. The data shows a 40% rise in the number of employers offering mental health support, with 63% of SMEs now having mental health first aiders in place. Interestingly, while there has been a global push towards better mental health provisions, the UK and Ireland are bucking the trend on work/life balance, with both countries seeing a decrease in the number of employers prioritising it as a key concern.
In contrast, the emphasis on work/life balance has grown by at least 50% in Australia, Canada, and New Zealand. Employers in these countries are also more likely to introduce mental health days. For example, New Zealand employers have been the most generous, with 20% offering mental health days in addition to the standard four weeks of annual leave, and another 16% planning to implement them within the next year.
However, the report also uncovered some worrying trends. Globally, mental health-related absences have risen by 21% over the past year, with significant increases in Canada and Australia. Meanwhile, both the UK and Ireland reported a decrease in sickness absence, potentially signalling a rise in presenteeism—where employees attend work despite being unwell, possibly due to mental health concerns.
Another concerning finding is that when employees do speak out about their mental health struggles, their concerns are not always addressed. One respondent noted, “While I am confident in supporting employees, I am not confident in raising issues I personally have. As a long-serving manager, I feel my needs are often overlooked, while younger colleagues receive the necessary support and adjustments.”
The Peninsula Group’s research underscores the urgent need for businesses, especially SMEs, to prioritise mental health as a critical component of workplace wellbeing. With mental health issues on the rise globally, proactive measures, including mental health first aiders and supportive policies, will be essential to safeguarding the health of employees and the sustainability of businesses in the years to come.