Supporting Employee Mental Health in a small business

Small business life moves fast. Growth targets, client deliverables, juggling hats (and sometimes entire departments). It is easy for employee wellbeing to slip off the radar. But here is the thing: ignore mental health, and it will quietly cost you - through absenteeism, disengagement, and turnover.

The good news? You do not need a corporate wellness budget or an in-house psychologist. You just need to get intentional, get human, and get cracking.

But first, here is what the law says (as of 2024)

Mental health is no longer a “soft” issue. With the introduction of the Code of Practice for Managing Psychosocial Hazards at Work (coming into effect from November 2024), businesses - yeah, even small ones - are legally required to identify and manage psychosocial risks like stress, bullying, and burnout.

Safe Work Australia has made it clear, psychological safety is a WHS issue. Failing to act on workplace mental health risks is now a compliance failure.

Translation? You cannot afford to ignore this anymore - and you do not need to. Here is how to get proactive (without overcomplicating things).

Why Mental Health matters more than ever

It boosts productivity (and cuts costly mistakes)

Mentally healthy employees are focused, motivated, and present. Chronic stress or burnout? It leads to errors, missed deadlines, and spiralling productivity. You cannot build high performance on an overwhelmed brain.

It reduces turnover

Hiring and training is expensive. If employees feel unsupported, they leave. Prioritising mental health boosts engagement, improves morale, and helps you keep your good people right where they belong…on your team.

It slashes absenteeism

People will take time off, either proactively, or because they crash. The choice is yours. Supportive workplaces reduce stress leave, sick days, and the kind of “under the radar” disengagement that tanks performance.

It builds a stronger culture

Support is not a tagline…it is culture in action. When people know they are valued, they show up differently. Mental health support creates trust, loyalty, and genuine connection. That is how teams become more than just coworkers.

What you can do (that actually works)

You do not need big budgets. You need clarity, consistency, and a few smart strategies. Here is where to start:

1. Normalise the conversation

Mental health is health. Start treating it that way.

· Talk about it openly (without making it awkward)

· Train managers to listen, not diagnose

· Encourage team members to speak up early, not when they are already burning out

A no-judgement zone goes a long way. Make “Are you okay?” more than a yearly campaign.

2. Offer flexibility without the guilt trip

Flexibility is one of the top requests in 2024—and one of the easiest ways to support wellbeing.

· Allow remote or hybrid work where possible

· Be outcomes-focused, not clock-watching

· Empower staff to take mental health days (without a 12-step approval form)

Trust people to know what they need, and they will usually reward you with loyalty and better performance.

3. Build breaks into your culture

Humans are not machines. Short breaks, actual lunch hours, and using annual leave are not luxuries, they are essentials.

· Encourage 5-minute reset breaks

· Lead by example (take your own bloody lunch break!)

· Stop glorifying burnout—rest is productive

Yes, even high performers need to pause.

4. Tap into an EAP (It is more affordable than you think)

Employee Assistance Programs (EAPs) offer confidential counselling, mental health support, and online resources. Many are scalable and affordable, even for micro businesses.

· Choose one that fits your size and budget

· Make it easy to access and completely confidential

· Promote it regularly, not just once at onboarding

Do not just “tick the box.” Make it known and used.

5. Run Mental Health workshops (the good ones)

The right training does not just tick compliance boxes—it gives people real tools.

· Resilience, stress management, and mindfulness workshops

· Peer support training for team leaders

· Online courses for flexibility and accessibility

Make it practical, engaging, and relevant—or skip it.

6. Build peer support, not just processes

People need people. And in small teams, emotional support is just as important as structure.

· Encourage regular check-ins (not just task updates)

· Create space for genuine team bonding

· Make empathy part of leadership, not an optional add-on

When teams care, they cope better.

7. Model what you preach

If you never take a break, never log off, and never acknowledge pressure, your team will follow suit, and burn out with you.

· Set boundaries and respect theirs

· Talk about stress management openly

· Show that self-care is not weakness—it is leadership

Culture starts at the top. You set the tone.

Supporting mental health is not “soft.” It is smart. It protects your people, strengthens your team, and positions your business for sustainable success. And with psychosocial compliance now part of your legal obligations, it is not optional anymore.

At HRxP, we help SMBs create workplaces where people do not just survive, they thrive. Whether it is setting up a mental health strategy, training your leaders, or developing policies that make sense, we are here to help.