Work-related stress regularly tops the charts when the root causes of sickness absence are identified, and in the current economic slowdown, many employees are expected to work harder and longer for less. Tim Holden reveals the true cost of stress on your employees.

In the UK, over 13 million working days are lost every year because of stress. Stress is believed to trigger 70% of visits to doctors and 85% of serious illnesses (Health & Safety Executive stress statistics). The same organisation concluded that work-related stress affects men and women in equal numbers, and that people in the age group from 45 to retirement suffer more than younger people.

Stress is proven beyond doubt to make people ill and evidence is increasing linking ailments and diseases to stress. Stress is known to contribute to heart disease; it causes hypertension and high blood pressure, and impairs the immune system. Stress is also linked to strokes, irritable bowel syndrome, ulcers, diabetes, muscle and joint pain, miscarriage during pregnancy, allergies and even premature tooth loss.

In a work context, stress also provides a serious risk of litigation for all employers and organisations, carrying significant liabilities for damages, bad publicity and tarnishing of the employer brand. Dealing with stress-related claims also consumes large amounts of management time.

So, there are clearly strong economic and financial reasons for organisations to manage and reduce stress at work, aside from the obvious ethical considerations. At work stress can be caused by:

• bullying or harassment




• feeling powerless and uninvolved in determining one’s own responsibilities




• continuous unreasonable performance demands




• lack of effective communication and conflict resolution




• lack of job security




• long working hours




• excessive time away from home and family




• office politics and conflict among staff




• a feeling that one’s reward is not commensurate with one’s responsibility




• working hours, responsibilities and pressures disrupting life-balance (diet, exercise, sleep and rest, play, family-time, etc)

What does it actually cost?

A recent study revealed that on average sickness absence costs British employers £659 each year per person, whilst absence results in a loss of over eight working days for every employee.

Last year, the case of Intel Corporation (UK) Ltd vs. Tracy Ann Daw is evidence that employers cannot afford to ignore stress-related problems. Daw was awarded £134,545 damages following a breakdown due to work-related stress associated with her workload.

The findings from a recent project that Fluid completed revealed that stress was a particularly significant factor in work-related absence for the 27 members of a fast-track talent pool, and in this case led to a cost per employee of £722 compared to a cost of £497 per employee for the 211 other members of the workforce.

How is it caused?

Stress is caused by various factors – not all of which are work-related (which incidentally doesn’t reduce the employer’s obligation to protect against the causes of stress at work). Causes of stress – known as stressors – are in two categories: external stressors and internal stressors.

• external stressors – physical conditions such as heat or cold, stressful psychological environments such as working conditions and abusive relationships, e.g. bullying




• internal stressors – physical ailments such as infection or inflammation, or psychological problems such as worrying about something

Effective management

The best managers set clear goals, communicate with clarity, consult, provide feedback and recognition, develop and coach subordinates. In addition there are a number of attributes that should be encouraged to take place at every possible opportunity:

• Managing workload and resources – this requires managers to monitor team workload and refuse to take on additional work when the team is under pressure




• Empowerment – this requires managers to trust employees to do their work and give them responsibility




• Accessible and visible – this requires managers to make time to talk to employees and avoid being constantly at meetings




• Expressing and managing own emotions – this requires managers to have a positive approach and avoid acting aggressively




• Communication – this requires managers to communicate clearly and avoid holding meetings behind closed doors




• Fright, fight, flight response – people’s responses to situations could determine their stress levels. When faced with a problem, do they fall silent? Do they stall? Deal with the problem? Or do they run away from the issue? If they feel that they cannot deal with the issue facing them, maybe they are already facing too much




• Covert signs – small signs may speak volumes about a person’s present stress levels. An increase in smoking or coffee breaks, even a sign of alcohol abuse can be small enough to go undetected but may be a sign of the larger problem




• Negative behaviours – these behaviours relate quite strongly to covert signs, except they may be more obvious. For example, these may include unusual responses to a situation or problem, such as an irritable reaction or acting unduly quiet




• Extended hours – along with procrastination, over working is a key sign. Employees coming in early or leaving late, not taking lunch breaks or working the weekends may all suggest the workload is too large to manage




• Home life is affected – if an employee’s life away from the office is being affected it makes it even harder to tell. Does the employee take holidays? Do they take paperwork home but don’t get the chance to do it?

Stress can be reduced in a variety of cost-effective ways, and failing to act promptly can simply store up problems for the future.

Tim Holden is managing director of HR consultancy Fluid