Economic Impact of Mental Illness on Swiss SMEs

SMEs Are Particularly Affected by the Impact of Mental Illness

Small and medium-sized enterprises (SMEs) are especially vulnerable to the consequences of mental health-related absences, as smaller teams have limited capacity to absorb staff shortages.

A recent survey shows that 64% of all Swiss SMEs have already experienced staff absences due to mental health issues.

In one in four SMEs, the impact in 2022 was even significant — this share rose from 21% in the previous year to 26%.

Only about one-third of surveyed SMEs reported no absences related to mental illness, indicating that the issue is becoming more pressing.

The costs of these absences disproportionately affect SMEs: when a skilled employee is out for a longer period, colleagues must take on more work, and temporary solutions are often required. According to the survey, 54% of SMEs cite increased workload and overtime for the remaining team as an immediate consequence of a colleague's long-term mental illness.

This overload effect can in turn lead to further health issues within the team — a vicious cycle for small businesses. In addition to the direct costs of absence (continued salary payments or sick leave insurance), indirect costs can be substantial. Calculations from the Compasso network show that indirect follow-up costs (e.g. overtime, temp hires, productivity losses, recruiting expenses) can amount to about 250% of the direct salary loss.

For an SME, every long-term absence can mean financial losses of tens of thousands of francs. It’s no surprise, then, that a shortage of skilled workers and the resulting overload are currently seen as key stressors in the SME landscape.

On the other hand, many SMEs are starting to take action. According to the AXA Labor Market Study 2023, the majority of small and medium-sized companies are already implementing preventive measures to reduce the risk of mental health issues.

Most of these measures are interpersonal — for example:

• Creating a positive work atmosphere (mentioned by 42% of SMEs)

• Fostering open communication and feedback culture (38%)

About 25% of SMEs aim to improve work-life balance, e.g. through flexible working hours, and one in five conducts employee surveys to detect early signs of issues.

Only 15% of companies reported having no prevention strategy at all.

These investments seem to pay off: studies show that healthy, motivated employees cause fewer accidents and are less frequently absent due to illness.

A holistic workplace health management approach can help SMEs recognize risks early and take action.

While SMEs may lack the in-house resources of large corporations (like in-house doctors or psychologists), external services like insurers’ case management or regional support programs (e.g. IV’s rehab management) can provide valuable assistance.

Sources: axa.ch, edi.admin.ch