An ever-present source of risk for any organization is its employees. Maintaining an optimal work environment is key to minimizing these inherent risks and one of the biggest factors that can invite risk into an organization is employee stress.
The Sibson Consulting division of the Segal Company recently performed a Web-based survey of human resources (HR) executives to shed light on what types of stress are most effecting companies. The results are based on 130 responses from organizations in 28 states.
When confronted with an open-ended question about how they expected stress to affect their workforce, HR executives highlighted higher turnover rates, lower morale, lower productivity and higher absenteeism (time off the job). “It is likely there will be less commitment to the organization, more illnesses and absences, lower morale,” said one respondent.
Especially during less affluent economic times, staffing restrictions and the fast-paced world of business can compound the stress that often manifests itself in a lack of performance. “We anticipate lower productivity due to inability to focus because of the increased amount of deadline-oriented work and improper staffing levels,” said another participant.
Survey participants responded similarly when asked which areas would suffer the greatest financial impact as a result of stress during the first half of 2002—lower morale, lower productivity, higher absenteeism, higher medical care costs, higher prescription drug costs and higher mental health and substance abuse costs. The escalating cost of prescription drugs is cause for worry in approximately half of the HR executives polled.
The HR executives were also asked to turn the stress indicator on themselves. Over half of all executives selected these issues as the largest sources of stress for HR and line managers for the first six months of 2002: understanding which work/life benefits are most valued by employees; helping leadership communicate effectively; understanding how to motivate and encourage employees with non-cash incentives; and enhancing the organization’s ability to respond to unexpected change.
Of the five areas that HR professionals were asked to select from, communications and employee work experience were far and away the two factors chosen to have the greatest impact in reducing stress. Strategic management, benefits and compensation, and performance management were the others that also received votes. Additionally, clear two-way communication between employers and employees was noted as key to eliminating stress, as was allowing employees to be heard through focus groups and surveys.
HR executives also noted that a main concern of theirs is in trying to help employees spend more time with their families. In order to do this, while attempting to recruit employees, retain talent and ease stress, employers may want to try an old-fashioned technique: paid-time-off and flexible work arrangements.
