Working life can be rewarding, but it can also be demanding – especially in small and mid-sized businesses where many team members are wearing multiple hats. Long hours, tight deadlines and blurred lines between work and home can lead to workplace stress and burnout. In fact, Gallup reports that workers who rate their mental health as fair or poor miss nearly 12 days of work a year — about four times more than their healthier peers. 

Why Employee Well-being Matters for SMEs

Strong performance starts with healthy people. Engaged employees are more productive and loyal, and they build better customer relationships. By contrast, stress and disengagement eat into performance: global employee engagement fell to just 21% in 2024, costing an estimated $438 billion in lost output. In Australia, poor mental health already costs roughly $60 billion a year, with mental health-related workers’ compensation claims averaging 17 weeks off work. Putting employee well-being front and centre is therefore not just compassionate – it’s good business.

Recognising Workplace Stress and Burnout

Burnout and chronic stress can be sneaky. Common signs include fatigue, irritability, difficulty concentrating, and a sense of detachment from work. Deloitte found that a whopping 77% of professionals say they’ve experienced burnout on the job, and 91% agree that unmanageable stress has hurt the quality of their work. In many SMEs, one person handling multiple roles – marketing, admin, customer support, etc. – accelerates this risk. It’s crucial to spot these warning signs early and step in to support overwhelmed staff.

Building Mental Health Awareness and Support

Fostering a supportive culture starts with awareness. Encourage employees to talk openly about stress and train managers to recognise problems. For example, regular one-on-ones or anonymous pulse surveys can reveal hidden strains. (One Capterra survey found 24% of SME staff felt their company wasn’t making mental health a priority.) Make sure everyone knows what support is available – whether it’s counselling, EAP services or flexible leave. Even casual gestures (like mentioning a mental health day in a meeting) signal that well-being matters. Gallup notes that over half of workers lack easy access to support services, so taking these steps can really make a difference.

Practical Strategies to Improve Employee Well-being

Taking action on mental health doesn’t have to be complicated. Here are some practical ideas:

• Flexible Work Practices: Allow flexible hours or hybrid schedules. Trusting people to manage their own time helps them juggle work and life commitments. For instance, offering remote days or flexible start times can reduce stress and improve work–life balance.
  
• Realistic Workloads: Avoid overloading staff. If someone is juggling five tasks, redistribute duties or streamline processes. When employees aren’t wearing multiple hats all at once, they can focus and feel less overwhelmed.
  
• Encourage Breaks and Time Off: Promote regular breaks (even a short walk) and ensure people actually take leave. Deloitte’s survey showed that 1 in 4 professionals rarely uses all their vacation days. Managers should model healthy behaviour by logging off after hours and endorsing a culture where “switching off” is OK. In any case, this is now a part of workplace legislation.
  
• Set Clear Boundaries: Define work hours and expectations, especially for remote teams. For example, discourage late-night emails or set a “quiet hours” block after which no meetings are scheduled. Clear boundaries help prevent the “always on” burnout trap.
  
• Provide Resources and Training: Offer mental health workshops or easy access to support services. Even short training on stress management can equip staff with coping tools. Encourage managers to do mental health first-aid training so they’re prepared to help team members in need.
  
• Foster Connection: Combat isolation by promoting social interaction. This could be a virtual coffee break or a monthly team activity. Strong social bonds at work boost employee well-being and create informal support networks among colleagues.
  

Supporting Mental Health in Remote and Hybrid Teams

Remote and hybrid work can be a double-edged sword. While flexibility can improve well-being, lack of structure can increase stress. McKinsey reports that employees anxious about unclear hybrid work plans are 2.9 times more likely to experience burnout. To avoid that, provide a clear post-pandemic work strategy. Communicate policies on office vs. home days, and make sure home workers have the technology and ergonomic setups they need.

Stay proactively connected: schedule regular video check-ins (not just task updates) and encourage informal “watercooler” chats. Use collaboration tools wisely to avoid overload — fewer, focused meetings and a shared task list can reduce chaos. It’s also key to watch for signs of fatigue or loneliness in remote staff: someone who always declines the camera may need extra check-ins. A quick call to ask “How are you really doing?” can go a long way.

There is clear evidence on the value of developing teams to be better at collaboration, teamwork and psychological safety, that sustains a performance culture. 

Leadership, Culture and Ongoing Effort

Ultimately, a healthy workplace is a team effort. Leaders should set the tone by showing empathy and sharing their own balance strategies. Celebrate small wins and model work–life balance (for example, by turning off notifications after hours). Encourage everyone to look out for one another – even just starting meetings with a quick wellbeing check (“How’s everyone feeling today?”) signals that mental health is a priority.

For sustained change, integrate mental health into your organisational culture. For example, our Culture Transformation framework can help embed supportive practices and policies. Reviewing workflows through our Performance Improvement approach can also identify chronic stressors and realign responsibilities. 

In one Melbourne startup, the founder noticed team burnout after shifting to remote work. He introduced “no-meeting Fridays” and short daily check-ins to discuss workload. The team also started an optional weekly yoga break via video call. The result? Fewer sick days and a noticeable boost in morale – a reminder that simple, people-focused strategies can make a big difference.

In summary, mental health awareness in the workplace is essential. Recognise stress factors early, normalise conversations, and provide practical support (especially in remote or hybrid settings), to reduce burnout and improve performance. After all, a resilient team is a productive team.

For more guidance on building a sustainable, healthy workplace culture, give us a call