The Cost of Stress on Your Business

Stress is a known cause of many health concerns and is also proven to reduce productivity, increase absenteeism, and lower employee engagement. Although workplace conversations around mental health are becoming more common, employees are more stressed than ever.

In fact, 83% of Americans reported workplace stress. Undoubtedly, stress is affecting your employees, but to what extent?

Here are some statistics gathered by The American Institute of Stress that could be affecting your company’s bottom line.

63% of workers are prepared to quit their jobs due to stress. 

The cost of employee turnover can cost up to 75% of an employee’s salary in lost productivity coupled with the costs of hiring and training new employees, which makes turnover one of the biggest stress-related costs for business owners. 

In 2013, the cost of stress-related absenteeism was $84 billion.

Employees who took sick days for mental health reasons were 7 times more likely to use additional sick days than those who were physically ill.

41% of employees reported a loss of productivity due to workplace stress.

One-third of employees believe that stress leads to lower employee engagement. 15% of employees have admitted to searching for another job due to increasing demands at work.  

Another study found that more than 50% of employees have low engagement due to stress.

Employees reported that stress caused a loss in productivity and affected relationships with co-workers. Being able to effectively collaborate with co-workers is essential to most businesses. Stress is impacting employee’s ability to do this in an effective and productive manner. 

What are the primary sources of stress in the workplace?

Managers – Do most employees leave their company or are they leaving their manager? 60% of employees have left their job and would leave another job because of a bad manager. 31% of US employees said the main source of stress was not having clear expectations from their manager. Leadership training and setting clear expectations are things employers can implement to reduce stress in the workplace.

Work-Life Balance – Work-life balance has become increasingly stressful during the pandemic when schools are closed and employees are faced with additional childcare challenges. 43% of US employees believe their employers don’t care about their work-life balance. Finding tangible ways to support work-life balance like offering flexible work schedules and asking employees for feedback around their needs is a great starting point to ease some of the stress. 

Heavy Workload – 39% of employees in 2017 cited a heavy workload as their primary cause of stress. Letting employees know they are appreciated, creating incentives around additional projects, and making sure there is a fair balance of the workload among co-workers are all ways to address this in a positive way.

Poor Communication – 80% of employees in 2019 felt that ineffective company communication was a major source of stress. When it comes to communication, it’s always better to over-communicate than not communicate enough. The more employees are aware of and aligned with the goals and progress of the company, the more likely they are to be engaged in their role within the company. 

The costs of stress on a company are high. Based on the statistics, stress is becoming worse over time. Businesses cannot afford to continue ignoring the problem. Addressing the source of stress will not only improve your employee’s mental health but will also have a positive financial impact on the business by increasing productivity and employee engagement. 

Source: The American Institute of Stress

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