How to Deal with Mental Health Issues in Small Businesses: Do’s and Don’ts for Employers

According to the National Alliance on Mental Illness, more than one in four adults in the United States struggle with a mental health condition, like anxiety or depression.  This translates directly to your workplace.  Imagine the impact on your team’s productivity and morale if nearly a quarter of your employees are battling these challenges silently.

Here’s the eye-opener: studies show poor mental health costs the global economy a staggering $16 trillion by 2030. That’s trillion, with a “T.”  And for businesses, the cost is just as real, with untreated depression costing nearly $10,000 per employee each year.

So, what can you do?  This guide will explore the surprising truth about mental health in the workplace, the hidden costs of neglecting it, and most importantly, specific actions you can take to cultivate a thriving, supportive environment for your team.

Let’s stop accidentally sabotaging your business and its most valuable asset: your people.

The Do’s:

Studies show that 57 percent of workers are more loyal, productive and take less time off when employers support their mental well-being. Here’s how you can do it: 

  1. Promote Open Communication
    • Encourage Dialogue: Create a culture where employees feel safe to talk about their mental health without fear of stigma or repercussions. This can be facilitated through regular check-ins, mental health days, and open forums for discussion.
    • Train Managers: Equip managers with the skills to recognize signs of mental distress and respond appropriately. Training can include identifying symptoms of stress, anxiety, and depression, and knowing how to have supportive conversations.
  2. Provide Resources and Support
    • Provide Resources: Offer access to mental health resources, such as Employee Assistance Programs (EAPs), counseling services, and mental health hotlines. Ensure employees know how to access these resources confidentially. Even if you are a small business who cannot afford an EAP, there are a lot of local or online services available you can make your employees aware of. 
    • Mental Health Days: Allow employees to take time off specifically for mental health reasons, similar to sick days.
    • Workshops and Seminars: Consider hosting occasional workshops or seminars on stress management, mindfulness, and other mental health topics. These sessions can equip employees with tools to manage their mental health effectively.
  3. Foster Work-Life Balance
    • Encourage Time Off: Promote the use of vacation days and personal time off to prevent burnout. Ensure employees understand the importance of taking breaks to recharge.
    • Limit Overtime: Avoid excessive overtime demands, which can contribute to stress and burnout. Encourage employees to set boundaries and maintain a healthy work-life balance.
  4. Regularly Assess and Improve
    • Surveys and Feedback: Conduct regular surveys to gauge the mental health of employees and use the feedback to make necessary adjustments in policies and practices.
    • Ongoing Training: Provide continuous education on mental health to keep all employees informed and aware of how to maintain their well-being and support their colleagues.
  5. Build a Positive Work Culture
  • Recognition and Appreciation: Regularly acknowledge and appreciate employees’ contributions. Positive reinforcement can boost morale and create a supportive atmosphere.
  • Team Building Activities: Organize team-building activities and social events to foster a sense of community and belonging among employees.
  1. Confidentiality and Respect
    • Privacy Protection: Handle all mental health issues with the utmost confidentiality. Ensure that any information shared by employees is protected and only disclosed with their consent.
    • Respect Individual Needs: Recognize that each employee’s experience with mental health is unique. Tailor support and accommodations to meet individual needs effectively.

The Don’ts:

  1. Avoid Stigmatizing Mental Health
    • Negative Language: Refrain from using stigmatizing language or making assumptions about an employee’s capabilities based on their mental health status.
    • Dismissive Attitude: Never dismiss an employee’s mental health concerns or treat them as less serious than physical health issues.
  2. Don’t Ignore Warning Signs
    • Early Intervention: Pay attention to early signs of mental health issues, such as changes in behavior, productivity, or attendance. Ignoring these signs can lead to more severe problems down the line.
    • Inaction: Failing to act on reported issues can exacerbate the situation. Always take employee concerns seriously and respond promptly.
  3. Avoid Overstepping Boundaries
    • Respect Autonomy: Do not pry into employees’ personal lives or force them to disclose details they are not comfortable sharing. Support should be offered without infringing on personal privacy.
    • Medical Advice: Employers and managers should not attempt to provide medical advice. Direct employees to appropriate mental health professionals for diagnosis and treatment.
  4. Don’t Implement One-Size-Fits-All Solutions
    • Individualized Support: Recognize that what works for one employee may not work for another. Avoid blanket policies and instead focus on flexible, individualized support plans.
    • Rigid Policies: Be adaptable in your approach to supporting mental health. Rigid policies may not account for the varying needs of employees.

Legal Obligations for Employers

Understanding and adhering to legal obligations is crucial for small businesses when addressing mental health in the workplace. Here are key legal requirements:

  1. Americans with Disabilities Act (ADA)
    • Non-Discrimination: Prohibits discrimination against employees and job applicants with disabilities, including mental health conditions.
    • Reasonable Accommodations: If an employee with a mental health condition discloses their disability and requests a reasonable accommodation to perform their job duties, employers must engage in an interactive process to explore options. This could include flexible work schedules, modified workloads, or access to mental health resources. However, employers are not obligated to provide accommodations that would cause them “undue hardship.”
  2. Family and Medical Leave Act (FMLA)
    • The FMLA allows eligible employees to take unpaid, job-protected leave for serious medical conditions, which can include mental health issues. Here’s what it means for employers:
  • Leave Eligibility: If an employee meets the FMLA’s eligibility criteria (worked for at least 12 months, worked a certain number of hours, and works at a location with 50 or more employees within 75 miles), they may be entitled to take up to 12 weeks of leave for a serious medical condition. Employers are required to approve the leave and hold the employee’s job.
  1. Occupational Safety and Health Act (OSHA)
    • Safe Work Environment: Employers must ensure a safe and healthy work environment, which includes addressing workplace stress and other factors that can impact mental health.
  2. State and Local Laws
    • Additional Protections: Be aware of and comply with state and local laws that may provide additional protections and obligations regarding mental health.

Proactive Steps for Small Businesses

  1. Implement Mental Health Policies
    • Develop clear policies that outline the support available to employees, procedures for reporting concerns, and steps the company will take to address mental health issues.
  2. Regular Mental Health Training
    • Provide ongoing training to staff on mental health awareness, including recognizing signs of mental distress and knowing how to respond appropriately.
  3. Promote a Healthy Work Environment
    • Foster a work environment that prioritizes mental health through initiatives such as stress management workshops, wellness programs, and promoting a healthy work-life balance.
  4. Monitor and Evaluate
    • Continuously monitor the effectiveness of mental health initiatives through employee feedback and regular evaluations. Be prepared to adjust policies and practices based on what works best for your team.

Supporting Struggling Employees

As a small business owner, you wear many hats.  Ensuring your team performs at their best is crucial, but what happens when an employee’s performance dips?  The answer can be complex, especially if mental health challenges are a factor. Here is what we recommend: 

1. Initiate a conversation:

  • Schedule a private meeting with the employee to discuss their performance issues.
  • Approach the conversation with empathy and concern, focusing on the specific performance concerns and their impact on the business.
  • Avoid accusatory language or assumptions about the cause of the performance issues.

2. Open the door for disclosure (optional):

  • Let the employee know that you’re concerned about their well-being and offer support if they’re comfortable sharing the reason behind their struggles.
  • You can say something like, “I’ve noticed a change in your performance recently. Is there anything going on that might be impacting your ability to focus on your work?”
  • Remember: You cannot force the employee to disclose their mental health condition.

3. Explore options:

  • Depending on the employee’s disclosure or if they choose not to share, discuss potential solutions. This may involve:
    • Offering flexible work arrangements (remote work, adjusted hours)
    • Short-term leave for mental health reasons (if applicable and company policy allows)
    • Lightened workload or reassignment of tasks
    • Providing information about Employee Assistance Programs (EAPs) or other mental health resources.

4. Document everything:

  • Keep a record of the conversation, including the date, time, and key points discussed.
  • If the situation escalates to legal action, having a documented record of the conversation can help demonstrate that you, as the employer, acted in good faith and took reasonable steps to address the performance issues. It can also show that you offered support and accommodations.
  • Under the Americans with Disabilities Act (ADA), employers are required to engage in an “interactive process” with employees who may have a disability impacting their work. Keeping a record shows you fulfilled this obligation.

5. Follow-up:

  • Depending on the agreed-upon solutions, schedule follow-up meetings to monitor progress.
  • Offer continued support throughout the process.

Prioritizing employee well-being isn’t just the right thing to do – it’s a strategic advantage. By fostering a supportive environment that addresses mental health, you can unlock a wave of benefits: increased productivity, higher employee satisfaction, and reduced turnover. This translates to a stronger, happier team and a more successful business.

Remember, creating a mentally healthy workplace is a journey, not a destination. It requires ongoing commitment, a culture of empathy, and proactive management.  If you’d like to dive into this topic further, feel free to reach out to our team for a free consultation

Scroll to Top