Workplace wellbeing is back in the headlines – not least as the dust settles from a divisive Budget – with employers and employees clearly feeling the strain. There is a need for greater investment, but how can small businesses afford it?

It’s fair to say that the 2024 Budget split opinion – was is good, bad or somewhere in between? Regardless of where you come down on the matter, what it made clear is the pressure that employers and employees are under and the need to do more to address issues related to workplace wellbeing.

What is the state of workplace wellbeing?

According to a recent survey by Robert Walters, over 80% of professionals have experienced poor mental health at work over the last 12 months. Notably, while there is recognition that most employers, at over 70%, offer workplace wellbeing benefits, less than half the participants in the study felt that they receive satisfactory support, with almost 60% viewing these efforts as “box-ticking exercises”.

These findings are echoed in research carried out by Towergate Health and Protection, which revealed that almost 60% of employers do not have an in-depth understanding of staff wellbeing needs, with such tools as formal feedback mechanisms and staff surveys underused.

The role of employers and what impact is it having?

The focus on employers’ awareness of and role in workplace wellbeing is interesting, with continued discussion on the burden that falls on directors, managers and business owners to manage such responsibility directly. According to research from Perkbox, almost two thirds of managers are increasingly called on to give advice on non-work issues, such as the cost of living crisis.

This pressure is taking its toll, in a range of ways, from causing key staff to forgo much-needed holidays to causing ill health. This is a development highlighted by the results of a new survey from Direct Line Business Insurance. According to the study, a fifth of small business owners and sole traders have not taken any annual leave this year, with almost a third revealing that they struggle to switch off from work.

Funding workplace wellbeing and how alternative finance can help

Mental health in the workplace is clearly an issue that needs to be better addressed, both for employees and employers, and both in terms of putting better frameworks in place and making sure existing framework function better. More money has to be invested.

And this is a major barrier for small businesses. Larger firms with more resources are better equipped to invest in improving workplace wellbeing policies and practices. But for smaller firms, finding the capital and the need to safeguard cash flow makes such measure much harder to take.

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 improving workplace wellbeing

The impact of the Budget on workplace wellbeing is a matter for much debate, but what is clear is that more needs to be done to improve how mental health at work is handled, for both employers and employees, in the small business sector.

While economic conditions make investment challenging, spending is required to safeguard key staff and their contribution to business operations. This is why it is vital that business owners 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 Tony Hedger on 01903 602211 or tony.hedger@atbusinessassociates.co.uk.