The Hidden Toll of Distress in Organisations

In the relentless pursuit of business success, the primary aim invariably revolves around generating profits. However, workplace stress is a prevalent issue that affects individuals, teams, and entire organisations, and its impact extends beyond personal well-being, significantly influencing productivity, morale, and overall organisational health. Stress at work can have profound impacts on physical health issues such as heart disease and mental health problems like anxiety and depression. Moreover, it strains relationships and contributes to economic costs through absenteeism and healthcare expenditures. By prioritising worker well-being and creating supportive environments, organisations can reduce stress and foster resilient and engaged teams, thus safeguarding both worker mental health and overall organisational success. 

The cost of stress can significantly impact organisations, as revealed by a study conducted by Russo and colleagues (2021), reported by the American Institute of Stress (2022). The economic toll of work-related stress is noteworthy, with estimates ranging from U.S. $221 million to upwards of U.S. $187 billion. Furthermore, within the United Kingdom exclusively, approximately 595,000 employees experienced work-related stress, depression, or anxiety in the previous year, as indicated by data from a Labour Force Survey (LFS) as cited in a review published by the Entrepreneur. This resulted in a staggering total of 15.4 million lost working days, entailing an estimated financial burden of £13.5 million. Zooming out to a European scale, the costs escalate into billions, revealing an annual estimate of €20 billion for work-related stress within the EU-15.  

Organisations have been trying to tackle the problem by implementing wellbeing programs, employee assistance programs and other health promotion initiatives that have been questioned recently in the media, and even by specific institutions. These solutions are needed and do have positive health outcomes (when well designed and implemented) but they can’t be the only focus of the organisational approach to handling stress challenges at the workplace.  

When organisations go beyond the individual health promotion approach, they can anchor the intervention in a more proactive and impactful strategies to manage workplace stress and anxiety effectively such as:  

• Foster a Positive Work Environment: Cultivate open communication and offer opportunities for career advancement, increased autonomy and flexible work arrangements. 

• Implement a comprehensive model for health risk assessments, particularly stress factors at the workplace and annually implement and evaluate the organisational capacity to mitigate those risks.  

• Support Work-Life Balance: Encourage flexible work schedules and stress the importance of taking breaks to recharge and recover.  

• Invest in Training and Development: Provide resources for skill enhancement to boost confidence and alleviate stress related to job performance. 

• Encourage Social Connections: Organise informal or formal team-building activities and promote collaboration to foster a supportive workplace community. 

The toll of stress within organisations is significant, affecting both worker welfare and overall company effectiveness. From heightened rates of absenteeism and staff turnover to diminished morale and productivity, the consequences of unmanaged stress are far-reaching. However, by recognising and addressing this issue head-on, organisations can create a healthier and more resilient workforce, that can handle stress better. Investing in worker well-being not only mitigates costs associated with turnover and absence but also fosters a positive workplace culture conducive to creativity, collaboration, and sustainable progress. By prioritising proactive and consistent stress management, organisations can ultimately achieve greater success and longevity. 

References: 

Adeyola, A. (2023). Beyond The Bottom Line: Exploring The Real Costs Of Burnout In The Workplace. Forbes. https://www.forbes.com/sites/forbescoachescouncil/2023/05/10/beyond-the-bottom-line-exploring-the-real-costs-of-burnout-in-the-workplace/

Boucher, C. (2022). The Cost Of Stress In The Workplace. How Too. https://www.howtoo.co/posts/the-cost-of-stress-in-the-workplace

Choolteva, Y. (2023). Three in five employees feel stressed at work because of cost of living, study finds. People Management. https://www.peoplemanagement.co.uk/article/1816372/three-five-employees-feel-stressed-work-cost-living-study-finds

Roberts, G. (2019). Workplace Stress Is Costing European Businesses Billions. Entrepreneur. https://www.entrepreneur.com/en-gb/living/workplace-stress-is-costing-european-businesses-billions/336011

The American Institute of Stress. (2022). What Is The True Cost Of Work-Related Stress?. Stress.org. https://www.stress.org/what-is-the-true-cost-of-work-related-stress

Wise, A. (2023). Work-related stress costs UK economy £28bn a year, research shows. Standard. https://www.standard.co.uk/business/business-news/workrelated-stress-costs-uk-economy-ps28bn-a-year-research-shows-b1070615.html