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Managers in small firms face mental health balancing act

15 November 2022

Business owners and managers in small and micro-businesses are finding it hard to support employees with mental health difficulties, according to new research.

The study, by researchers at the University of York's School for Business and Society and the ESRC Centre for Society and Mental Health at King's College London, reveals a picture of managers, many with little training or experience of dealing with mental health issues, facing a difficult balancing act between offering support and managing employee performance at work.

In a series of in-depth interviews, researchers found that one employee's mental ill-health could have a significant impact on co-workers. The close-knit social and physical proximity of small workplaces intensified the impact on colleagues.

The researchers identified tensions for managers in balancing the individual employee's needs with the impact on performance and wellbeing of the workforce as a whole. Managers also grappled with the dilemma of whether to approach an employee's mental health issue informally or through more formal procedures.

Lack of support for small business owners

The study has found that small and microbusiness managers rarely have access to advice from occupational health or HR departments, which is the norm in larger organisations. Some small and micro-business managers said that they have found the challenge of seeking the right support overwhelming.

"Balancing everybody's needs is like juggling on a tightrope"

Dr Jane Suter, from the University of York's School of Business and Society, said: "When dealing with a colleague's mental health challenges, managers can often feel incredibly isolated. It can take an emotional toll on the managers themselves. Some feel that balancing everybody's needs is like juggling on a tightrope".

"Many managers were very close to their employees, some viewed them more like friends and family. They were often worried that being too heavy-handed in dealing with mental health issues could impact the entire workforce."

Dr Suter said: "It is important to point out that many of the problems around mental health in small and micro-businesses don't have straightforward solutions. An employee's mental health problem doesn't necessarily stem from within the workplace and a manager just cannot resolve it. But he or she still has to manage it.

"More needs to be invested in management and leadership skills. In a small organisation of, say, ten employees, it is just the owner-manager shouldering all the management responsibilities."

Counting the cost of mental health issues in SMEs

A recent survey conducted by GoProposal, has found that over half of businesses (55%) either have no mental health support in place for their employees, or have support processes that aren't used enough. Business owners said the biggest barriers to employees talking about their mental health and stress included:

  • The fear of career implications (40%);
  • A heavy workload (38%);
  • The feeling that there is no-one to talk to (32%);
  • Having to work long hours (29%).

According to business owners, the biggest impacts of employee mental health issues are:

  • More mistakes in the workplace (44%);
  • Lower morale and motivation (44%);
  • Lower productivity and efficiency (41%).

Written by Rachel Miller.

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