The state of wellbeing at work: What small business owners need to know

In today's rapidly changing work environment, the health and wellbeing of employees is more important than ever, particularly for small businesses in the UK.

A new report by Employment Hero sheds light on the current state of wellbeing in the workplace, offering critical insights that small business owners can use to improve employee satisfaction, productivity and retention.

Below is a summary of the key points, but you can download the full report at the Employment Hero website.

Work-life balance is a struggle

One of the report's key takeaways is that a significant number of UK employees feel their work-life balance is suffering.

Over 57% of people who responded to Employment Hero's surveys rated their work-life balance as either "poor" or "average", with remote workers reporting a better balance compared to employees based in the office.

For small business owners, this is an important reminder that offering flexible or remote working options could help your employees manage their professional and personal lives more effectively.

Small businesses often fear that remote work might reduce productivity, but the report suggests otherwise. In fact, 67% of fully remote workers rated their productivity as high, compared to just 54% of hybrid workers. Flexibility, when done right, not only enhances the work-life balance but also boosts performance.

Stress and burnout are major concerns

Stress is a major issue in the workplace, with 42% of employees experiencing it at least a few days a week. Worryingly, 34% of respondents have taken leave due to burnout or stress-related concerns.

Small businesses, whose resources are often stretched thin, need to pay close attention to these figures. Over half of employees at small companies (1 to 30 staff) report feeling stressed regularly, compared to 37% in larger organisations.

Burnout, particularly among younger generations, is also a serious problem, with 73% of Gen Z employees feeling burned out in the past three months.

Addressing these issues through better communication, flexible work options and proactive mental health initiatives can significantly improve employee wellbeing and reduce absenteeism.

Financial worries drive stress

Another crucial finding is that financial stress is the number-one cause of workplace anxiety, with nearly 30% of respondents citing financial pressures as their top stressor.

Given the rising cost of living in the UK, it isn't surprising that employees are feeling the pinch. The report indicates that only 56% of employees feel their workplace is doing enough to support them financially.

For small business owners, increasing wages might not always be feasible, but there are other ways you can support your employees. Tools like Employment Hero's InstaPay, which allows employees to access earned wages in real time, offer an innovative solution.

Providing financial wellness programmes or even having transparent conversations about pay can help ease financial anxiety and improve employees' morale.

Mental health conversations are still taboo in small businesses

Despite growing awareness, mental health remains a difficult topic for many employees. The report found that 42% of UK workers are reluctant to discuss mental health issues, with staff of small companies less likely to feel comfortable than those in larger organisations.

For small business owners, fostering an open, empathetic culture where employees feel safe discussing these issues is key. Regular check-ins, manager training and anonymous feedback tools can help bridge this communication gap.

Perks matter

When it comes to attracting and retaining talent, perks do matter – and remote work tops the list of benefits people want. The report reveals that "remote and flexible work options" are the most sought-after perks, followed by career development opportunities and strong reward programmes.

Small businesses can often struggle to compete with larger companies on salary, but offering meaningful perks can make a big difference. Whether it's flexible hours, mental health support or good opportunities for personal development, these perks are increasingly important for today's workforce.

Wellbeing isn't optional, it's essential

For small business owners, employee wellbeing isn't just a "nice-to-have". It's a critical factor in driving productivity, retaining staff and overall business success.

The report highlights the importance of mental and physical health programmes, especially in small businesses where only 26% of employees say such schemes are in place. This is a wake-up call for SMEs to prioritise employee wellbeing if they want to thrive in today's competitive market.

Conclusion: Start with empathy

Ultimately, the key takeaway from the Employment Hero report is that wellbeing begins with empathy. Small businesses have an opportunity to create more flexible, supportive environments that genuinely care for employees' mental, physical and financial health.

By investing in wellbeing initiatives, you – as a business owner – can foster a more motivated, productive and loyal workforce, and help ensure your long-term success.

In a world where the cost of living is rising, stress is high and burnout is rampant, small businesses must take action. Flexible working, financial support and an open approach to mental health can make all the difference. The wellbeing of your employees isn't just their concern – it's yours too.

Download the full report for more key insights

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