With the high workload and constrained resources, it can be difficult for small businesses and startups to consider factors like employee wellbeing and work culture. 

However, prioritising proper mental health support can be especially critical in small businesses and startups, where employee well-being is vital to the sustainability and success of the business. Just one individual struggling with mental health concerns can have a significant effect on a small business’ productivity, business performance and overall morale.

It is no wonder that smaller companies are increasingly choosing to outsource employee mental health support to external providers, usually by way of employee assistance programs (EAP). In this article, we discuss why mental health support is particularly important for small businesses and how EAPs can help build a more resilient and productive workforce. 

The Need for Mental Health Support in Small Businesses and Startups

Greater workloads and higher stress levels

According to a 2023 study on mental health risks on the working population in Asia,¹ approximately 82% of employees in Asia have a moderate to high risk of experiencing mental health issues. It was found that mental health conditions like stress, anxiety, depression and burnout were prevalent among employees at all levels and in every surveyed industry and location throughout Asia. 

In particular, workplace stress and burnout may be exacerbated in small businesses, where there is often a high-productivity culture and employees tend to take on multiple roles, resulting in greater workloads and long working hours. Both founders and employees alike may also feel the more personal responsibility and pressure to ensure the success and survival of the business, and the increased uncertainty that may not be present in larger organisations.

Impact on productivity and business performance

Mental health issues can have a significant negative effect on workplace productivity, with 45% of surveyed employees in Asia reporting that their mental health directly impacted their work performance. Stress and burnout play a particularly important role in driving down productivity, with affected employees reporting that they find it difficult to concentrate on their work, and feel mentally and/or physically exhausted by the end of the work day. 

This may be especially concerning for small businesses that rely heavily on individual contributions and have higher team interdependence. When there is a reduction in employee productivity or absence on the part of a single employee as a result of mental health issues, it affects the entire team and increases pressure on other team members to compensate for any gaps. Where such mental health struggles remain unaddressed, this can lead to a burnout across the entire team. 

Further, mental health challenges can significantly affect core workplace functions such as communication, collaboration, innovation and decision-making. This can directly jeopardise business outcomes, especially for small businesses which operate with less buffer for downtime or mistakes.

Poor employee wellbeing can also result in small businesses suffering significant financial costs from absenteeism, presenteeism, sick leave and related healthcare costs, as well as turnover costs. Globally, the World Health Organisation has found that an estimated 12 billion working days are lost every year to depression and anxiety at a cost of US$ 1 trillion per year in lost productivity

Impact on team dynamics due to close-knit culture

Small businesses tend to foster a close-knit culture and work environment, making mental health struggles more visible. As a result, mental health challenges can have an outsized effect on overall morale and teamwork, and may potentially lead to ripple effects in the form of increased tension or conflicts in the workplace.

Because of the unique dynamics present in small teams, mental health struggles faced by a single employee can also cause a shift in the entire team’s culture and attitudes, especially if that individual happens to be in a leadership or highly visible role. 

Effect on recruitment and retention

Finally, the increased turnover rate associated with mental health challenges can strain the already limited operational and financial capacity of a small business or startup. Replacing employees is also costlier for small businesses, compared to larger organisations that have higher financial resilience, more staffing and lower recruitment costs per employee. 

How a small business can benefit from an Employee Assistance Program (EAP) 

The prevalence of mental health issues among employees in Asia underscores the importance of having employee wellbeing initiatives in place that can support employees in their mental health struggles. This is especially critical for small businesses and start ups, who may suffer a greater negative impact from poor employee mental health.

However, due to limited HR and financial resources, small businesses often find it hard to offer the same employee benefits offered by larger firms, and usually lack dedicated HR or employee wellness programs. This leaves employees with fewer avenues to seek support for their mental health issues. 

Small business owners and HR departments should consider using an Employee Assistance Programme (EAP) to provide mental health support to employees. EAPs are employee benefit initiatives sponsored by employers to support employees facing any personal or work-related challenges that could affect their job performance, health, and well-being. They involve providing employees with confidential counselling services to assist in addressing and managing these challenges effectively.

Outsourcing mental health support to EAP providers can be an affordable option for small businesses and may be more cost-effective than hiring and training in-house counselling teams, and ensuring that the counselling and support services provided are of a high quality. Further, the return on investment from an EAP can be extremely high – studies show that improving overall employee wellbeing does help to increase a company’s productivity and employee engagement, reduce absenteeism and presenteeism, and cut turnover costs. 

Increased Workplace Productivity 

EAPs can help employees gain access to qualified mental health professionals who have expertise in dealing with specific mental health challenges. These professionals can provide essential guidance and a safe space to individuals struggling with mental health, and help them navigate any work-related problems (such as burnout) or personal issues (such as family or relationship challenges) that may be affecting their job performance. 

When employees are able to effectively deal with any mental health struggles, their engagement and productivity at work increases. For small businesses that have higher team interdependence, this can have a direct impact on business performance. 

Reduced Absenteeism, Presenteeism and Healthcare Costs 

Putting in place workplace wellness support and crisis interventions will equip employees to better manage their mental health challenges. This in turn reduces absenteeism, presenteeism and the need for sick leave and related healthcare costs, which will be especially beneficial for small businesses which often operate with lean teams.

Increased Employee Engagement and Retention

Investing in employee wellbeing can also help to foster a more positive culture in small businesses, which will enhance collaboration and increase job satisfaction amongst employees.

Improving the workplace culture will also help to attract top talent and reduce turnover rates, which is crucial for small businesses who have to compete against larger companies that offer more extensive benefits and who have far more limited operational capacity. 

Why Choose ThoughtFull as Your EAP Provider?

Holistic and Integrated Approach to Mental Health 

Small businesses looking to invest in employee wellness should prioritise integrated, ongoing wellness strategies over initiatives which are ad-hoc and only address problems at a single point in time. This will help to ensure that the support provided is aligned with the mental health issues and concerns that employees face, and that employees remain supported as they enter or emerge from periods of strained mental health and higher mental health risk. Ultimately, EAP benefits can only be fully realised when mental health support is used effectively.

Our EAP is designed to provide proactive, interventional support according to the varying levels of needs within the organisation. Whether individuals require preventive care, curative care or crisis intervention, we have a variety of wellness support services available for employees, ranging from comprehensive counselling and therapy services, to self-help resources on self-regulation and stress management. This ensures employees have access to meaningful, scalable support every step of the way.

Receive Support Anytime and Anywhere

Employees can easily access ThoughtFull's comprehensive mental health support system. This includes unlimited asynchronous text-based coaching via the ThoughtFullChat app, as well as a 24/7 wellness hotline for crisis support.

We also offer both online and on-site counselling services with a highly curated network of certified professionals from diverse cultural backgrounds and specialisations. This ensures that employees receive support tailored to their unique mental health needs, anytime and anywhere.

Proven Outcomes 

ThoughtFull’s EAP consistently delivers measurable results, with a utilisation rate of 43%, far exceeding the industry average of 3%. Our clients have reported a 52% average reduction in stress, anxiety, and depression levels among their employees.

Explore our case studies to see how we've partnered with leading organisations to transform workplace wellness through tailored EAP initiatives.

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¹ 2023 Asia Mental Health Index by Aon and TELUS Health