Wellbeing is your next competitive edge

This World Wellbeing Week, Marcus Clifford is inviting fellow business leaders, managers, and change-makers to reflect on one question in his latest blog.

What are you doing this week to invest in the long-term Wellbeing of your people?

Wellbeing is one of those words that’s become overused, diluted, and often misunderstood in the business world. Especially among SMEs. It’s frequently viewed as either a vague aspiration, a tick-box HR initiative? Or just another burden adding already stretched resources?

But many SME’s as family businesses instill a family progressive approach to the team and a positive environment of care is fostered. But many don’t. But whatever your approach, maybe World Wellbeing Week , (24th to 30th June), offers a timely opportunity to pause and ask: How are we really doing? Not just as individuals, but as leaders, teams, and whole organisations?

Do you have anyone watching your Wellbeing?

As someone who studied an MSc  in Applied Positive Psychology at UEL and has been in the business world for many years, I’ve seen firsthand how the science of Wellbeing can be applied not only to help people flourish, but to also tackle many of today’s most pressing workplace issues such as, burnout. Burnout isn’t just about being overworked. It’s also about lack of autonomy, disconnect from purpose, and the erosion of positive emotions at work.

SME leaders maybe respond better to straight-talking, practical framing like, ‘How to stop burnout so your best people don’t leave.’ ‘Keeping energy high to drive sales and delivery.’ ‘A 10-minute reset that boosts decision-making clarity.’

Buzzword Fatigue around Wellbeing?

• Wellbeing means everything and nothing. It’s used to refer to physical health, mental health, job satisfaction, work-life balance, financial stability, purpose, and more , without precision.
• SME owners hear Wellbeing alongside other overused terms like ‘resilience,’ ‘inclusion,’ or ‘psychological safety,’ without clear relevance or outcomes. So it becomes just more noise.

 Misalignment with SME Realities

• SME leaders are typically time-poor, wearing multiple hats, and focused on survival and growth.
• They often think Wellbeing is something for big Corporates with HR teams and budgets, not a lean 20-person team battling deadlines and cash flow.

 Wellbeing is often framed as a cost, not a value driver

• In SMEs, every pound and every hour count.
• Wellbeing is often sold as a ‘nice to have’ rather than something that directly reduces absenteeism, increases productivity, or boosts retention.
• If there’s no immediate ROI or impact on cash flow or performance, it gets parked.

HR Frictions and Compliance Overload

• Many SME owners already feel weighed down by compliance , employment law, health and safety, data protection, etc.
• Wellbeing initiatives can feel like more HR red tape or policy baggage, especially when introduced as frameworks or toolkits with no clear cultural fit.

Wellbeing needs to be communicated as a strategic enabler, not a soft benefit. SMEs respond when.

• It’s linked directly to performance, team resilience, and customer service quality.
• The approach is practical, low-cost, culturally relevant, and doesn’t feel like ‘HR fluff.’
• It helps the owner themselves , many are close to burnout, and modelling Wellbeing at the top sends a more authentic message.

SMEs That do prioritise Wellbeing have progressive leadership (often owner-led, values-driven) and recognise the link between employee Wellbeing and performance. Such as reduced absenteeism, higher engagement and motivation, greater team cohesion and retention. They may not use the formal language of ‘Positive Psychology’ or burnout prevention, but their culture naturally aligns with Wellbeing principles.

• According to a CIPD study, fewer than 50% of SMEs have a formal Wellbeing strategy , but those who do report better employee outcomes.
• Deloitte (2022) found that mental health-related absences cost UK employers £56bn annually, and ROI on mental Wellbeing initiatives can be as high as £5 for every £1 spent.
• A Mind UK survey showed that only 1 in 5 small firms had mental health policies , but over 80% of SME staff said workplace Wellbeing affected their performance and decision to stay.

How Can SMEs Reap the Benefits Without Big Budgets?

• Create a culture of psychological safety.
• Train managers in mental health first aid and positive leadership.
• Promote work-life balance and realistic expectations.
• Recognise and reduce burnout risks early (role clarity, autonomy, support).
• Use models like PERMA or the LIFE Model to inform Wellbeing strategies.

Enter Positive Psychology

Positive Psychology isn’t about blind optimism or smiley faces on stress. It’s a science-backed discipline focused on what makes life worth living and what helps people thrive, not just survive.

When applied in the workplace, it offers tools and frameworks to shift from a reactive, deficit-focused model (fixing what’s broken) to a proactive, strength-based approach.

Some Principles from Positive Psychology That Tackle Burnout and improve Wellbeing.

1. Strengths First
   When people use their core strengths regularly at work, they’re more energised, engaged, and resilient. Identifying and deploying strengths boosts both Wellbeing and productivity.
2. Psychological Safety
   Teams that feel safe to speak up, fail, learn, and contribute without fear experience less stress and more innovation.
3. Autonomy and Flow
   Giving people space to work with autonomy, and design tasks that encourage ‘flow’ (deep engagement), combats overwhelm and fosters motivation.
4. Purpose and Meaning
   Connecting day-to-day tasks to a bigger purpose helps counter feelings of disconnection and fatigue.
5. Positive Emotions and Micro-Moments
   Small, regular experiences of joy, gratitude, or connection build psychological resources that buffer against stress.

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