Two NZ startups team up to make mental health support for employees more affordable

Stress levels are rising across New Zealand's workforce; and startups are no exception. But for small businesses - especially those working within tight budgets or a reduced runway- providing this support to their teams remains hugely challenging. 

Employment Operating System innovator Employment Hero and digital mental health EAP provider Clearhead sit down to share what they're doing to help tackle the issue…

Rising stress and the mental health crisis in small businesses

Recent data reveals that workplace stress is reaching new highs. Employment Hero's Wellness at Work report shows that as many as 61% of New Zealand employees have experienced burnout over the past three months.  The report  surveyed 1,002 New Zealand employees between 12 April and 1 May 2024, revealing that Kiwi workers are facing unprecedented levels of stress, with financial strain billed as the biggest culprit. Nearly one-third (32%) of respondents identified financial stress and the rising cost of living as their primary sources of anxiety; underscoring how cost pressures are affecting not only employees' financial well-being but also their mental health. 

What's more, 70% of Gen Z employees reported experiencing burnout in the past three months - significantly higher than other age groups. They are often at earlier career stages than other generations, with lower incomes, rendering them particularly vulnerable to financial stress. Combined with the cost of living crisis, inflation and high interest rates, they are facing a unique set of challenges that exacerbate their experiences of burnout and anxiety. 

Meanwhile, Clearhead's 2024 data indicates that work demands are the most commonly cited source of mental strain, with 77% of people who sought support about it being negatively impacted. 

'Help' is often out of reach

Clearhead offers Employee Assistance Programme (EAP) to medium and large enterprises in New Zealand and Australia, reaching over 160,000 employees, but these programs are often beyond the budgets of small businesses, leaving employees in these settings without crucial mental health resources. 

"We wanted to change this narrative," comments Founder and CEO of Clearhead Dr Angela Lim. Clearhead have announced a brand-new partnership with Employment Hero to help level the playing field by ensuring mental health support reaches employees at every business - regardless of size.

Making mental health affordable 

As of today, through Employment Hero's Employment Unlimited Service (currently utilised by over 10,000 small businesses), employees will be able to access EAP support at no additional cost.

Employment Hero has been outspoken about the benefits of combining HR processes into a single employee operating system and is pioneering making EAP an integral part of this approach. "This approach means small and medium businesses no longer have to make difficult decisions about whether they can afford EAP on top of their existing software costs, as it comes at no extra cost. By partnering with Clearhead, we're able to ensure smaller teams aren't left without the help they need and we're making employment easier and more valuable for everyone," comments Ben Thompson, Co-Founder and CEO of Employment Hero.

But really - how is this possible?

"EAP support can be costly, especially when they require professional mental health experts who are matched to individuals based on specific needs. Clearhead's model ensures that employees receive quality, individualised support; and Employment Hero then distributes these costs across thousands of small businesses, making it more feasible for each individual business to afford EAP support," explains Ben. 

What's more, Clearhead's Employee Assistance Programme (EAP) is a modern, digitally-delivered mental health support system that brings essential services to employees through an accessible online platform which keeps costs in check and meet the needs of a modern workforce by providing comprehensive mental health support anytime, anywhere.

"In today's demanding work environment, it's more important than ever to give employees access to resources that help them manage stress and thrive. We've made this a lot easier for 10,000 businesses and we believe this number will continue to grow as businesses move to consolidate their HR service providers," says Dr Angela.