6. Employee Well-being - Prevent Burnout & Boost Productivity.

How to support mental health, manage stress, and create a thriving team.

 Imagine this -  One of your most reliable employees—someone who rarely takes a sick day—starts arriving late, missing deadlines, and withdrawing from conversations. When you check in, they assure you they’re just “a bit stressed.” A few weeks later, they hand in their resignation. You later hear from colleagues that they were struggling with their mental health but didn’t feel comfortable speaking up.n

For SME owners, this situatio is more common than you think. Unlike larger corporations with dedicated HR and wellness programs, small businesses often lack formal mental health support. This can result in -

• Increased absenteeism – Employees taking excessive sick leave due to stress-related illnesses.

• Presenteeism – Staff showing up to work but operating at reduced productivity.

• Higher turnover – Good employees leaving because they feel unsupported.

In New Zealand, mental health challenges are rising—with work-related stress, burnout, and anxiety becoming significant issues. The problem isn’t just a personal one; it affects productivity, morale, and even your bottom line. The good news? SME owners can take simple, practical steps to foster a workplace where employees feel valued, supported, and empowered to take care of their mental well-being.

The Solution – Proactively Supporting Employee Well-being

Managing mental health in the workplace isn’t about becoming a counsellor—it’s about creating an environment where employees feel safe, supported, and able to do their best work.

Here’s how SMEs can take a proactive approach -

1. Start the Conversation About Mental Health

For many employees, discussing mental health at work feels taboo. As a business owner, you can help break the stigma by -

• Encouraging open, non-judgmental conversations about stress and mental health.

• Training managers to recognise signs of mental distress and check in with employees.

• Leading by example—if you prioritise mental well-being, your employees will feel empowered to do the same.

One simple way to start? Regular one-on-one check-ins where employees feel comfortable discussing workload, stress levels, and any personal challenges impacting work.

2. Recognise the Warning Signs of Employee Burnout

Burnout doesn’t happen overnight—it builds up over time. Common signs include -

• Exhaustion – Employees seem constantly drained, physically or emotionally.

• Reduced performance – More mistakes, missed deadlines, or lack of focus.

• Disengagement – A once-enthusiastic team member becomes withdrawn or cynical.

If you notice these signs, act early. A simple conversation, adjustments to workload, or offering support resources can prevent a bigger crisis.

3. Offer Flexibility and Work-Life Balance

Rigid schedules and excessive workloads contribute to burnout. Where possible, consider -

• Flexible working hours – Allow employees to adjust start/end times to suit their needs.

• Remote work options – Even occasional work-from-home days can help reduce stress.

• Encouraging breaks – Promote a culture where stepping away from work is normal and encouraged.

Even small changes—like discouraging after-hours emails—can significantly improve employee well-being.

4. Create a Supportive and Inclusive Environment

Employees who feel connected and valued are more likely to thrive. Ways to foster a positive culture include -

• Regular team-building activities – Creating social connections can reduce workplace stress.

• Mental health awareness initiatives – Bringing in guest speakers or running wellness programs.

• Zero-tolerance for workplace bullying – Ensuring a safe and respectful environment for all.

A culture of trust and support makes employees feel safe discussing their challenges without fear of judgment.

5. Provide Access to Mental Health Resources

Many SME owners want to support employees but aren’t sure where to start. Fortunately, New Zealand offers several free or low-cost mental health resources that businesses can tap into -

• Employee Assistance Programmes (EAPs) – Offer confidential counselling services for staff.

• WorkSafe NZ Mental Health Guidelines – Provides workplace mental health support strategies.

• MIND NZ & Mental Health Foundation NZ – Offer free guides and tools for workplace well-being.

Simply sharing these resources with employees can make a huge difference in their willingness to seek help.

Reflective Scenario – What Would You Do?

One of your best employees has started making frequent mistakes, missing deadlines, and avoiding meetings. You’re frustrated but don’t want to lose them.

Using the strategies above, you might -

• Check in with them privately – A simple “How are you doing lately?” can open the door.

• Adjust their workload temporarily if they’re overwhelmed.

• Encourage breaks and self-care – Reminding employees that well-being comes first.

By taking a compassionate and proactive approach, you retain good staff, boost morale, and create a healthier workplace.

Golden Nugget - "A business is only as strong as its people—prioritising mental health is not just the right thing to do, it’s smart business."

By fostering a workplace culture that values well-being, SMEs can improve employee engagement, productivity, and retention. A little support goes a long way in building a team that’s not just working hard—but thriving.