New Data Shows SMEs Experiencing Stress and Anxiety

In New Zealand, there are approximately 70,000 business or service entities operating within the construction industry. According to a survey from MYOB, a business management platform, the lingering effects of the COVID-19 pandemic have resulted in heightened stress and anxiety among those affected, particularly local SME owners and operators.

The 2022 MYOB Business Monitor surveyed 1,000 local SMEs, and found that approximately one-third of local SME owners had experienced a mental health condition since starting or taking over their business. Of those affected, 85% reported stress, 71% experienced anxiety, and 39% had periods of depression.

Compared to the previous year, the latest figures indicate a sharp rise in the proportion of SMEs experiencing stress, which was up nine percentage points (76% in 2021). In addition, SMEs affected by anxiety also increased by seven percentage points (64% in 2021).

Visit Mates In Construction or Depression.Org for additional support.

COVID-19 Repercussions Remain Top Factor Negatively Impacting Wellbeing

In terms of the most significant impact on mental wellbeing, 59% of SMEs cited ‘Covid-19 repercussions’, retaining its position from 2021. This was followed by a lack of sleep (35%) and the workload (29%). MYOB’s Head of Employee Services, Felicity Brown, explains that whilst running a business can be incredibly rewarding, the growing pressures have played a significant effect on mental wellbeing.

“The Kiwi business owners behind the more than 530,000 SMEs we have here in Aotearoa, are typically known for their passion and resilience, however, over the past couple of years they’ve had to overcome numerous challenges as they run their business and it’s clear this is having direct impact on their mental health and wellbeing,” says Felicity.

“Given the current economic environment, with the cost of living and inflation rising – coupled with growing workloads – it’s understandable SMEs will be feeling overwhelmed, which is leading to increases in stress and anxiety, but it’s important for business owners and leaders to remember they’re not alone and support is available.”

Talking about mental health in the workplace

Interestingly, despite a significant proportion of SME owners experiencing mental health struggles, the research found that a majority of SMEs aren’t actively discussing mental health and wellbeing in the workplace. Three quarters (75%) of those polled said they have not
discussed mental wellbeing or support structures with their employees over the past 12 months, whilst only a quarter (25%) said that they have.

MYOB’s data further reveals that younger business owners are seemingly more comfortable talking about mental health compared to their older counterparts. According to the survey, nearly 38% of Gen Y and Gen Z (20 - 40 year olds) have discussed mental wellbeing and support with their employees over the past 12 months. This is compared to 29% of SME owners who identify as Gen X (40 - 60 year olds), and 20% of Baby Boomers (60 - 75 year olds).

Mental Health Foundation’s Chief Executive, Shaun Robinson says, “A healthy and thriving business requires mental wellbeing policies to be made a priority. Good mental health leads to better engagement, reduced absenteeism and higher productivity, while improving people’s wellbeing, morale and job satisfaction.

During these challenging times we encourage all SMEs to create a workplace where mental wellbeing takes centre stage. It may feel daunting initially as you juggle the challenges of running a business. You’ll need to communicate and engage with your staff so together you can begin to make change. To help support your conversations check out the free resources for workplaces that sit on our website.”

Workplace Wellbeing Initiatives Still Low

Reflecting on last year’s findings, the 2022 MYOB Business Monitor found that only a handful of SMEs have implemented new mental wellbeing support systems for their team members over the past 12 months.

According to insights, only 10% of SMEs introduced mental wellbeing initiatives or support for employees, while 84% did not.

Of those surveyed, SMEs who hadn’t implemented new mental wellbeing initiatives were asked why. The most common responses showed;

● 15% believed that their employees don’t need any mental wellbeing practices or support
● 14% have already put some of these practices in place
● 13% had never thought about implementing wellbeing practices for their employees.

For the SMEs which had implemented new mental wellbeing initiatives in the workplace, the common practices included; regular check-ins to manage workload (40%), introducing flexible hours to improve work/life balance (38%), and providing team members with a set mental health day/s (32%).

MYOB’s Felicity Brown says “Being mindful of employees’ wellbeing and offering support around this is incredibly important to both workplace culture and performance. But putting in place measures to help empower conversations around wellbeing or improve workplace practices and support for employees, doesn’t need to cost the earth”.

“From growing their knowledge and inspiration around wellbeing at work using free resources available from MBIE, the Mental Health Foundation of New Zealand and Wellplace, to sharing free digital solutions created specifically for those in small business, like Smiling Mind, or establishing mental health ‘first aiders’ in the workplace – there are a range of tools available to help small business owners and their teams.”

As mental wellbeing plays a critically important role in ensuring the success of SMEs, MYOB partnered with mindfulness app Smiling Mind in 2020. This was done to create the ‘Small Business Program’, a program designed by psychologists to help small business owners better manage the unique stressors and challenges they face.

Free to access for SMEs in New Zealand and Australia (via the App Store or Google Play), the Small Business Program comprises four models: stress management, managing work/life balance, managing isolation, supporting growth and building resilience.

For more information on SMEs’ mental health and wellbeing, click here to read the MYOB 2022 Mental Health Report.