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Practical ways small businesses can support employee mental health

Mental health is no longer something small businesses can afford to treat as a side issue. When teams are small, the impact of stress, burnout or anxiety can be felt quickly, both by the person affected and the business.

The good news is that supporting employee mental health does not have to be complex or expensive. In many cases, small, consistent actions can help people feel more supported at work.

This article looks at practical steps small businesses in Australia can take now, without needing large budgets or dedicated HR teams.

What you should know about employee mental health

Mental health challenges are common across Australia. The Australian Bureau of Statistics reports that around one in five Australians experienced a mental or behavioural condition in a given year, based on findings from the National Study of Mental Health and Wellbeing1.

In a small business, this can mean someone is struggling quietly while still coming to work. Over time, this may affect focus, energy levels and attendance. It can also place pressure on the rest of the team, particularly when there are fewer people to share responsibilities.

Mental health is also part of workplace safety. Safe Work Australia explains that employers are expected to manage risks to psychological health, including psychosocial hazards that arise from how work is designed and managed2.

Moving beyond compliance

Many small business owners focus first on meeting their legal obligations. That is important, but it is only the starting point.

Supporting mental health also means looking at everyday work practices. Things like unclear expectations, ongoing time pressure or limited opportunities to raise concerns can contribute to stress over time.

A simple, practical approach is often easier to maintain than detailed policies that sit on a shelf.

Practical steps that work in real workplaces

Small businesses often ask where to begin. Once you've achieved compliance, the next step is to start is with actions that reduce uncertainty and encourage open communication.

Some practical actions include:

  • Checking in regularly with staff and encouraging open conversations
  • Making workloads and priorities clear
  • Allowing flexibility where possible during busy or stressful periods
  • Making sure employees know what support is available and how to access it

These steps are small, but they help build trust. And trust makes it more likely people will speak up early, rather than waiting until things become harder to manage.

Using employee benefits to support mental well-being

Employee benefits can support mental health, especially when a business does not have internal resources or specialist roles.

Support options may include access to counselling, employee assistance programs or wellbeing resources. These services give employees a private way to seek help for personal or work-related concerns.

For small business owners looking for practical guidance, the Australian Government’s National Mental Health Commission provides resources designed specifically for small workplaces, focusing on simple actions that help protect mental health at work3.

Making support part of everyday work

Mental health support works best when it becomes part of everyday business practice, not something that only comes up after a problem arises.

This might mean encouraging feedback about workloads, being open to small adjustments, or learning how to recognise early signs of stress. Over time, these habits can help create a more supportive and sustainable work environment.

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Frequently asked questions

Start with simple habits like regular check-ins, clear expectations, and making support easy to access. A consistent approach is often easier to maintain than a big one-off initiative.

It relates to work factors that can cause psychological harm, such as high job demands, low job control, conflict, or poor support. Safe Work Australia explains how psychosocial hazards fit under WHS duties.

Yes. Mental health is part of health and safety, including the requirement to manage risks from psychosocial hazards.

When a team is small, there are fewer people to cover work, share pressure, or absorb disruption. Even a short-term absence can affect customers and day-to-day operations.

The Australian Bureau of Statistics reports that one in five Australians (21.5%) experienced a mental disorder in the previous 12 months (2020–2022).

Start with a respectful conversation and ask what support would help. Keep it practical and focus on adjustments you can reasonably make. If appropriate, remind them of any external support options available.

An employee assistance program (EAP) is a confidential support service that employees can use for counselling and guidance. It can work well for small businesses because it gives access to support without needing in-house specialists.

Focus on what costs little: clear priorities, realistic deadlines, better communication, and flexibility where possible. Free or low-cost guidance is also available from the National Mental Health Commission’s small business resources.

High workload, unclear roles, ongoing conflict, lack of control over work, and poor support from managers are common examples of psychosocial hazards.

The WHS approach is broadly consistent, but details can vary depending on your state or territory regulator. Safe Work Australia guidance is a helpful starting point for understanding psychosocial hazards.

The National Mental Health Commission has a small business guide designed for owners and sole traders.

Employee benefits can make support easier to access, which can help reduce disruption from unaddressed stress and improve retention over time. They are one practical part of a broader approach to supporting people at work.

References

  1. Australian Bureau of Statistics, “National Study of Mental Health and Wellbeing”, https://www.abs.gov.au/statistics/health/mental-health/national-study-mental-health-and-wellbeing/latest-release, accessed 23 January 2026.
  2. Safe Work Australia, “Work-related psychological health and safety”, https://www.safeworkaustralia.gov.au/safety-topic/managing-health-and-safety/mental-health/psychosocial-hazards, accessed 23 January 2026.
  3. Australian Government National Mental Health Commission, “Small business guides to mentally healthy workplaces”, https://www.mentalhealthcommission.gov.au/projects/mentally-healthy-work/national-workplace-initiative, accessed 23 January 2026.

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