Why small businesses can’t afford to overlook employee wellbeing

Creating a supportive and positive working environment is one of the most effective ways to retain talented employees and set your business apart from the competition. While you may not be able to match corporate benefits rand-for-rand, you can build a culture that promotes loyalty, trust and job satisfaction in ways that truly matter to people.

Go beyond legal obligations in difficult times

When an employee loses a loved one, they’re often given the minimum number of compassionate leave days prescribed by law. But grief doesn’t follow a schedule, and many people return to work before they’re ready, simply because they don’t have a choice. By offering extended compassionate leave, you send a clear message: your employees are human first. This level of understanding and flexibility can have a profound impact on an individual’s mental health, recovery, and loyalty to your business.

Practical support with long-term value

Making funeral cover available as part of your employee benefits can provide valuable peace of mind. While it won't ease the emotional burden of losing a loved one, it can reduce the financial pressure families may face when the time comes. For employers, it's a cost-effective way to demonstrate care and long-term support for staff wellbeing. It also helps mitigate against difficult requests for staff loans and salary advances to cover unforeseen funeral expenses.

Be proactive about mental health

Mental health is no longer a taboo topic in the workplace, and business owners who are serious about retention are paying attention. Providing access to therapy or mental health resources, whether in person or online, can make a huge difference for employees dealing with personal or professional stress.

Equally important is creating a culture where asking for help is normalised. Allowing mental health days, encouraging open conversations, and training managers to identify when someone might be struggling are steps that build a psychologically safe workplace. When employees feel safe to speak up, they are more likely to stay engaged and loyal to your business.

Flexible work can promote stronger performance

Flexibility isn’t just about remote work, although offering work-from-home days can certainly help. It’s about recognising that employees have lives outside of the office. Offering flexible hours or hybrid work arrangements gives staff the opportunity to manage their time in a way that suits their personal circumstances, whether that means doing the school run, attending medical appointments, or simply working during their most productive hours.

Trusting employees to manage their time effectively shows that you respect them. In turn, they are more likely to reciprocate with commitment and high performance.

Encourage growth without pressure

Career growth is important, but not every employee wants a high-pressure climb up the corporate ladder. Some value learning and development without the expectation of constantly ‘moving up’. Small businesses can tap into this by offering skills development opportunities, mentorship, cross-training and stretch projects that allow people to grow in place.

Investing in your team’s growth, without tying it strictly to promotion, demonstrates that you’re invested in them as individuals, not just as roles to be filled.

Build a culture of trust and respect

At the heart of a supportive workplace is a culture of mutual trust and respect. This doesn’t require a big budget, but it does require intention. Regular check-ins, transparent communication, and taking the time to listen to employees genuinely can make a world of difference. Recognise and celebrate good work, encourage feedback, and promote an environment where staff feel seen and heard.

When employees feel respected, valued and supported, they are less likely to look elsewhere, even if the salary on offer is higher.

In summary

Small and medium-sized businesses may not always have the financial firepower to compete with large corporations, but they do have the advantage of agility, empathy and personal connection. Being prepared for the unexpected can avoid unpleasant cashflow surprises. By putting employee wellbeing at the centre of your business culture, from flexible hours and mental health support to extended leave and meaningful communication, you can build a loyal, motivated team that will grow with you.

If you found this article insightful, you may also find value in reading Recognising Grief and Checking In on the Strong One: Recognising and Supporting Those Who Bear the Weight.