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Last edited 17 Jun 2021
37% of SMEs suffer mental health problems due to pay issues
On 28 February 2020, the results of a YouGov / ECA / BESA poll were reported, revealing that 37% of small and medium-sized businesses across all industry sectors are encountering mental health issues among staff due to unfair payment practices.
YouGov surveyed 2,000 decision-makers among SME businesses, between 20 January and 3 February 2020. Other major findings included:
- 22% of SME owners have had to reduce their salary or stop taking a salary for a period of time, as a result of late or unfair payment.
- Those working for SME businesses in London reported the highest number of mental health issues among staff due to late or unfair payment (42%).
- Businesses in the North and East reported the smallest number of mental health issues (34%).
- Under 35s were eight times more likely than over 55s to say someone at their business had experienced suicidal feelings (8% vs 1%), and four times more likely to recognise self-harm among staff from unfair payment (4% vs 1%).
- Overall, 71% of SMEs across the entire economy are paid late. The worst affected sectors were legal (90%) and construction (82%).
As well as late payment, SMEs face unfair payment practices including; mid-contractual changes, withholding of a proportion of monies due (retentions) and fees for being paid within the correct timeframe.
ECA and BESA are calling on the Government to give the Small Business Commissioner tougher powers to sanction late payers across every sector, as well as legislating for a retentions deposit scheme to protect construction SMEs from systemic abuse of cash retentions and upstream insolvency.
ECA Director of Legal and Commercial Rob Driscoll said: “These shocking new findings show how late and unfair payment is causing a wave of mental health issues right across the economy and society. With mental health now rightly in the spotlight, it’s beyond the pale that large businesses continue to impose such issues on SMEs across industry.”
BESA Head of Legal and Commercial Debbie Petford said: “This poll confirms what previous industry-wide surveys have shown – a dual crisis of mental health problems and unsustainable business practices. With this growing evidence of the huge social and economic damage caused by systemic unfair payment practices, the question should no longer be what is the cost of reforming the status quo, but how can we afford not to?”
You can find out more at: https://www.eca.co.uk/news-and-events/news/2020/feb/survey-almost-four-in-10-smes-suffer-mental-healt
 Related articles on Designing Buildings Wiki
- Business owners forced to stop paying employees due to late payment.
- Construction supply chain payment charter.
- ECA articles.
- Economic upturn masks mental health crisis.
- Fair payment practices.
- Late payment.
- Main contractor’s discount.
- Managing stressful issues in construction.
- Project bank accounts.
- Prompt payment code.
- Small Business, Enterprise and Employment Bill.
- The causes of late payment in construction.
- The Late Payment of Commercial Debts Regulations 2013.
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