Widespread money worries are prompting many small to medium-sized enterprises (SMEs) to increase mental health support for employees.
According to research by Howden Employee Benefits, 50% of SMEs report financial challenges as the biggest problem affecting their workforce at the moment.
This may, in part, explain why 46% are expanding mental health support for their people.
Meanwhile, many SMEs plan to take other steps such as boosting access to Private Medical Insurance, enhancing pension contributions and adding lifestyle perks such as gym memberships and discounts.
Overall, more than three-quarters of SMEs plan to revamp their employee benefits packages, so they’re in a stronger position to deal with workforce challenges, address economic pressures, and ultimately, attract and retain the best people.
Sickness absence rates reach 15-year high
Howden believes this focus on reviewing benefits is particularly timely, as 104.9 million workdays were lost in 2023 due to long-term health conditions.
This, it said, means that sickness absence rates are now at their highest level in 15 years.
Cheryl Brennan, managing director of Howden Employee Benefits, said: "SMEs are navigating a perfect storm of rising costs, recruitment pressures, and increased employee demand for healthcare, particularly mental health support.”
“However, many businesses understand that offering comprehensive benefits can be a powerful tool to improve employee wellbeing, reduce absenteeism, drive productivity and strengthen recruitment and retention of talent.”
Ms Brennan added that investing in the right benefits can “lay the foundation for a more productive and resilient workforce”.
Long-term sick leave costs UK billions every year
Proactively addressing employee welfare could also have considerable economic benefits and improve the wider trading environment for SMEs.
According to research by Zurich and the Centre for Economics and Business Research, the cost of long-term sick leave in the UK could almost double by the end of the decade.
Whereas long-term sick cost the economy £32.7 billion in lost productivity in 2023, this figure is tipped to rise to more than £66 billion by 2030.
The report also noted that the number of employees with long-term health conditions has risen by more than a quarter over the last six years.
Written by James Glynn
Senior Financial Content Writer
