Why Investing In A Healthy Workforce Is Good For A Small Business

Employee wellbeing is at the top of the business agenda as a key factor in boosting employee performance, reducing sickness absence, and lowering costs. It also helps companies to attract and retain valuable talent.

However, a common misconception among startups and small businesses is that investing in wellbeing initiatives is costly and therefore the preserve of larger organizations. A 2019 study by AXA PPP Healthcare found that 82% of small and medium-sized businesses in the U.K. do not have a health and wellbeing strategy in place.

Prevention is key

Chartered psychologist Dr Sanjay Popat works with companies to develop wellbeing strategies and has observed that when small businesses do engage with wellbeing it tends to be reactive, i.e., responding to seismic changes in their operations brought about by wellbeing crises, rather than proactive; anticipating potential wellbeing issues and intervening before they lead to such crises.

He says: “In some ways, small businesses are particularly well positioned to promote a preventative well-being strategy; as they tend to be less bureaucratic, with fewer layers of management, and a close-knit environment, well-being decisions can be made swiftly and developed from close consideration of the voice of employees.

“Prevention is often a lot cheaper than having to provide expensive counselling or specialist services if employees are already burnt out or have developed a mental health condition. Small businesses can do this in two main ways, by reducing the sources of stress employees are exposed to; job demands or increasing resources to them; job resources.”

To reduce job demands, it’s important to find out what the key stressors are for the employees, via simple questionnaires or short interviews. Steps can then be taken to minimize these by having regular check-ins where questions or concerns can be raised, or by setting professional boundaries regarding the scope of work or communication etiquette before taking on clients. Resources may also include providing autonomy, such as employees having control of where they work and involving them in key decisions.

A tech talent crisis

Rising workloads and budget constraints are taking their toll on employees in the tech sector, which is facing a huge talent crisis. Figures from the Harvey Nash Global Tech Talent & Salary Report found that the workloads of more than half (55%) of tech professionals increased over the past year, while more than a quarter (26%) reported a reduction in the size of their team.

It also revealed that 44% of tech professionals are considering leaving their present role in the next 12 months, with 31% considering leaving for a change of culture. Staff do, however, feel well supported, with 80% of tech professionals saying their employer is supportive of their physical and mental wellbeing.

Data security firm Harmonic Security employs 30 people in the U.K., U.S. and Iceland and has always embraced a ‘work anywhere’ model. CEO and cofounder Alastair Paterson says: “Unlike others in the technology industry, we don’t ask our employees to undergo an upheaval in their lives just to come and work for us. In the U.K., too, not everyone wants the expense or cost of living close to London, so we don’t ask them to do that.”

Working from anywhere has proved effective in attracting and retaining talent and maintaining a healthy workforce, however, there is recognition of the importance of face-to-face contact for building trust in employees. The company’s U.K. HQ is based in a vibrant area of London and offers popular staff amenities, including a gym, showers, bike racks, social events, and a chef-run canteen. “We have an office that is a place the team wants to visit,” says Paterson.

Staff are also offered unlimited holidays and health cover and enjoy quarterly company offsites, with the most recent one taking place in Iceland. Paterson insists that investing in a culture that supports wellbeing ultimately pays for itself. “Recruiting staff costs money and we want people to stay with us so that any recruitment we do is for new positions,” he says. “All staff get equity on top of a competitive salary which means they’re invested in the business from day one. If we are successful as a business, then so are they and the cost to us is in proportion to that.”

Affordable initiatives

There are plenty of cost-effective wellbeing measures available, including offering flexible work arrangements to promote work-life balance and improve productivity, as well as facilitating free or low-cost workshops on stress management, mindfulness, or meditation. Startups and small firms can also share free mental and physical health resources, such as online courses, meditation apps, and exercise videos.

Group risk benefits like critical illness insurance and group income protection employers can help to improve employee financial wellbeing, which can support higher levels of engagement and productivity, and help reduced stress. Although these perks are traditionally associated with larger organizations, some insurance providers specialize in working with startups and small businesses, offering flexible terms and lower minimum participation requirements, enabling even small teams to access these valuable benefits.

Launched in 2020, CasinoReviews provides reviews and updates about online casinos. The company employs just 18 people but includes income protection and life insurance in its employee benefits package. Its wellbeing strategy was developed at the outset in order to create a good work environment.

HR manager Tsvetelina Nasteva says: “Along with the group risk benefits, we offer flexible work hours, wellness workshops, and mental health services. We also encourage the use of free wellness apps like Calm or Headspace for meditation, or MyFitnessPal for fitness tracking, and focus on balancing work and life through team activities and keeping open communication to meet everyone’s needs.”

The wellbeing strategy has brought positive results, with fewer people taking unplanned sick days. “It’s also helped us attract and keep top talent, with many new hires saying our benefits made them want to join us,” says Nasteva. “Overall, investing in employee wellbeing has helped our company grow.”

Creating a positive work culture is crucial and can be considered a resource in its own right, for example, by supporting staff to talk about challenges and problems, discouraging overwork, and encouraging breaks.

“Role modelling is particularly useful here; small business owners should set an example for their employees, making it more likely that these behaviors are mirrored,” adds Popat. “Continually engaging with these low-cost strategies can lead to high-impact outcomes for the business, such as reducing staff turnover, and increasing productivity and engagement.”

ENDS