In an increasingly fast-paced work environment, workplace mental health and well-being isn’t just a “side issue” — it’s becoming central to our productivity and prosperity.
The World Health Organisation (WHO) reports that 15% of working-age adults have experienced poor mental health at work at any point in time, and the decline in productivity caused by depression and anxiety is estimated to cost USD 1 trillion. A recent OECD report found that 2 out of 5 full-time employees across OECD countries suffer from stress, which was heightened as a result of the COVID-19 crisis.
The well-being of business leaders and entrepreneurs is equally important to economic outcomes. Research shows that our entrepreneurs are less innovative, persistent, and productive when their well-being suffers, leading to lower economic output and fewer jobs. Again, the COVID-19 crisis had a big impact: according to Bupa’s Global Executive Wellbeing Index, during the pandemic 78% of SME managers reported experiencing poor mental health.
Japan’s efforts to boost entrepreneur mental health
Japan is working to prioritise the well-being and mental health of its entrepreneurs and employees. Japan has the second largest proportion of workers struggling with life at 76%, compared to an OECD average of 48% – investing in human resources is an urgent issue for Japanese companies. According to the Ministry of Health, Labour and Welfare (MHLW), in 2021, 60% of Japanese companies had initiatives in place to support employee mental health.
To support them in their efforts, the Japanese Ministry of Economy, Trade and Industry (METI) launched the “Kenko Investment for Health” (KIH) policy in 2014 to promote the health and well-being of employees of large organisations and small and medium enterprises (SMEs). The KIH emphasises the prevention, early diagnosis, and treatment of poor mental health to promote work-life balance and make employee well-being an attainable and sustainable goal.
KIH adopts a strategic approach that views employee health as an investment in future sustainability. Companies that prioritise the health and well-being of their employees are expected to improve business performance. According to the results of a survey of job seekers in Japan, about 60% indicated that companies’ commitment to KIH is a decisive factor in choosing a job.
In 2016, METI and the Tokyo Stock Exchange introduced the “Excellence KIH Corporation Certification System” to award companies prioritising workplace well-being. Often struggling to attract and retain talent, the certification can create a positive brand image for SMEs. By 2023, the number of certified SMEs surged to over 16,700, a significant jump from just 318 SMEs in 2016.
Promoting KIH has led to measurable improvements in employee health indicators and work performance metrics such as absenteeism and work engagement. Companies implementing KIH report higher employee engagement and significantly lower rates of high-stress employees. According to the HOKENDOHJIN-FRONTIER Inc., companies that promote KIH perform better in all measures of employee retention and productivity.
An international agenda
Japan is not alone in launching new initiatives to promote the well-being of entrepreneurs and SMEs. In 2021, the Australian government and the Beyond Blue organisation, put in place the New Access for Small Business Owners Initiative, which provides a guided self-help mental health coaching programme for small business owners. In 6 sessions, a mental health coach will work with small business owners to manage stress and overwhelm using straightforward problem-solving approaches.
Similarly, in 2023, the Government of New Zealand launched the “Brave in Business e-Learning series” to support small businesses with their mental health and well-being. The online tool provides practical resources and tools with easy-to-follow advice from the Institute of Organisational Psychology. Topics include how to prioritise for success and how to take control when overwhelmed. The government’s “mental health” website has had 193,450 visits from small business owners seeking well-being advice.
Time to take the pin out: empowering SMEs employees and entrepreneurs
On 27 June, the annual Micro, Small and Medium Enterprises (MSME) Day, as well as the one-year anniversary of the OECD SME and Entrepreneurship meeting at the Ministerial level, which underscored the need for action on wellbeing. Japan’s KIH initiative is a step in the right direction.
The message is clear. If we want more resilient businesses, we need more resilient entrepreneurs and SME employees – and for that, we need to support them to look after themselves and their well-being.
