Burnout and stress is breaking Aussie small businesses

Man at desk head in hands symbolising burnout amd stress
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New national data has found workplace stress isn’t just creeping into Aussie small businesses … it’s basically everywhere.

According to Suicide Prevention Australia’s Workplace and Industry Distress report, nine in ten Aussie workers are dealing with some level of work-related distress, and more than one in five say it’s extreme.

Key points

  • 9 in 10 workers are dealing with workplace stress
  • 1 in 3 business owners report psychological distress
  • Burnout and workload are the biggest triggers

Businesses and staff under stress

While mid-sized businesses are technically the hardest hit (with 30 per cent of workers reporting extreme distress), small business isn’t exactly cruising. In fact, more than a quarter of small business workers are relying on little to no formal support, and 15 per cent say they have none at all.

Which tracks, because when you run a small business you don’t have the luxury of an HR team or a wellbeing manager. It’s often just you juggling everything, so providing support can be difficult. Separate data shows one in three business owners are experiencing moderate or high psychological distress, and 40 per cent have dealt with a mental health condition like anxiety, stress or burnout.

This isn’t a “you problem”

One of the most important takeaways from the reportis the stress is impacting businesses and workplaces nationwide.

“Workplace distress in Australia is no longer the exception; it’s the norm,” said Suicide Prevention Australia CEO Nieves Murray.  “It’s about the systems, pressures, and cultures we have built into our workplaces.”

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So what’s driving the stress? No surprises here:  Heavy workload and burnout top the list  (61 per cent), followed by demanding clients (50 per cent)  and poor support and pay issues (39 per cent). Add in cash flow pressure, staff shortages and the general chaos of running a business, and it’s easy to see why so many owners are running on empty.

The ‘missing middle’

One of the more interesting insights is what’s being called the “missing middle”. Mid-sized businesses (20–249 staff) are under the most strain because they’ve outgrown the “we’re all in this together” vibe… but don’t yet have the systems or resources of big corporates.

Plenty of growing businesses land in that awkward zone which equates to more pressure, more people, more responsibility … but not a lot more support.

Policies aren’t cutting it

Even when workplaces do have mental health policies, they’re often just ticking a box.

Only 20 per cent of workers say mental health is genuinely encouraged at work, and just 15 per cent say it’s properly embedded in the culture.
“Having a policy on paper is not the same as having a culture that makes people feel safe to use it,” Murray says.

Stress a reality of business

Stress is frequently becoming a reality of running a business and when stress ramps up, performance drops. People leave. Mistakes happen. Your business gets harder to run.

The report is pretty clear on what needs to shift: Build support into your day-to-day, not just policies. Make it okay to talk about stress (starting with you)  and get ahead of burnout before it hits crisis point.

“Preventing distress is not just good for people, it is a workplace fundamental,” Murray concludes.

If you or someone you know needs support, you can contact Lifeline on 13 11 14.

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Cec is a content creator, director, producer and journalist with over 25 years of experience. She is the editor of Business Builders and Flying Solo, the executive producer of Kochie's Business Builders TV show on the 7 network, and the host of the Flying Solo and First Act podcasts.
She was the founding editor of Sydney street press The Brag and has worked as the editor on titles as diverse as SX, CULT, Better Pictures, Total Rock, MTV, fasterlouder, mynikonlife and Fantastic Living.
She has extensive experience working as a news journalist, covering all the issues that matter in the small business, political, health and LGBTIQ arenas. She has been a presenter for FBI radio and OutTV.

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