Productivity Challenges: Motivation, Absenteeism and Presenteeism

There’s a national issue affecting all businesses that weighs particularly heavily on SMEs - productivity. The UK has experienced stagnant productivity growth for over a decade, and much of this is exacerbated by absenteeism and presenteeism, particularly within smaller businesses. Absenteeism costs UK employers billions each year, but the growing issue of presenteeism - when employees come to work despite being unwell - can be even more damaging. Studies show that a large majority of UK employers report employees working while unwell3, significantly impacting overall productivity.

For SMEs with fewer employees, the ripple effect of absenteeism or presenteeism can be immense. When one person is less productive or absent, others have to pick up the slack, which can lead to decreased morale and burnout, have real effects on customer relationships, and more. As such, investing in employee health and addressing the root causes - through better absence support and health benefits - can have a profound effect on your company’s performance.

Hybrid Working: Balancing Flexibility and Wellbeing

The shift to hybrid working has redefined how businesses operate, creating both opportunities and challenges when it comes to staff wellbeing. For many SMEs, hybrid working arrangements have been embraced as a way to offer flexibility and improve work-life balance, but the blurring of lines between work and personal life can leave some employees finding it harder to switch off

Maintaining health and happiness in this new working model requires SMEs to develop new strategies. Providing mental health support, encouraging regular breaks, and ensuring open communication channels can help employees manage their work more effectively. Fostering a healthy culture in a hybrid environment is vital to keeping employees engaged and reducing the risk of overwork and isolation.

Cost of Living: The Growing Pressure on Wellbeing

The ongoing cost-of-living crisis is another factor affecting the health and happiness of employees in the UK, particularly within SMEs. Recent bouts of high inflation, often without corresponding wage growth, have left many workers facing increased financial pressure. This is not just a personal issue - it impacts work performance too. Financial stress can lead to mental health issues such as anxiety and depression, which in turn reduce productivity and overall job satisfaction.

For smaller businesses, offering benefits such as mental health support, financial wellbeing programmes or flexible working arrangements can help alleviate some of these pressures. By doing so, SMEs also demonstrate a commitment to their workers, which increases loyalty and engagement.

NHS Waiting Lists: Delayed Healthcare, Delayed Productivity

Access to healthcare is a significant concern in the UK. With NHS waiting lists still high, employees struggling with health issues may go untreated for extended periods. This not only impacts their personal wellbeing, but also their ability to work effectively. SMEs, in particular, feel the brunt of this, as prolonged employee absence or reduced capacity can significantly impact day-to-day operations.

To address this, many businesses provide private healthcare options to facilitate faster medical support. Employee Assistance Programs (EAPs) and wellness initiatives can also offer quicker access to mental health services, reducing both absenteeism and presenteeism. By offering such benefits, SMEs can help their staff stay healthier, happier, and more productive.