The state of workplace wellbeing is under the microscope, with calls for increased investment growing louder and louder. The government has announced a new fund, but the onus is still on businesses. How can small firms afford to up spending?

New research from Perkbox has underlined the issue of mental health in the small business workplace, in particular for management, with the survey revealing the growing role that managers have in looking after the wellbeing of team members.

According to the data, almost 90% of managers feel responsible for employee wellbeing, with this duty of care covering both financial and non-work issues, including the rising cost of living. This provision of care comes at a cost, not least as many managers feel unqualified to offer advice. As such, it is unsurprising that their health is suffering.

These findings come on the heels of the revelation that more than half of SMEs owners experienced poor mental health over the last year, while over 90% of employees experienced stress or burnout in the workplace in 2023.

Funding wellbeing investment and how alternative lenders can help

Awareness is increasing around the issue of workplace wellbeing, not least as the number of reports detailing the scale of the problem continues to grow. Notably, the government has launched a new £1.5 million fund to develop work occupational health services, with small businesses a key focus.

However, developing workplace wellbeing strategies and programmes remains the responsibility of businesses and for smaller firms, affording such investment continues to present a challenge – with market conditions still difficult despite growing optimism.

This is where alternative finance can help.

Services such as invoice finance, asset finance and peer-to-peer lending are proving a vital source of capital for small businesses in the current funding climate (with 65% more SMEs experiencing difficulty in accessing finance from high-street banks). These alternative finance facilities, which offer a more easily accessible, affordable and personalised approach to lending, are helping small businesses survive and target recovery, stability and growth.

This profile has helped cement the reputation of alternative finance in the business sector. Notably, the new Growth Guarantee Scheme will provide a wide range of finance facilities to smaller firms, including asset finance, invoice finance and asset-based lending. This is further proof that alternative lenders are increasing filling the small business funding gap.

Small firm finance options for workplace wellbeing programmes

Despite the pressure on cash flow, it is essential that small firms find the capital to increase spending on workplace wellbeing. For a business to function, and thrive, a healthy workforce is vital, and economic conditions in recent years have pushed people’s capacities to the full.

Against this backdrop, with traditional lenders taking a cautious approach to small business lending, it is important that owners and directors are aware of all the finance options available to them, including the services of alternative lenders.

To find out more about A&T Business Associates services, contact Steve Bowles on 01903 602211 or steve.bowles@atbusinessassociates.co.uk.