Employee stress will cost the business and its magnitude will be large in a long run. * The total health and productivity cost of worker stress to American business is estimated at $50 - $150 billion annually. * Forty percent of job turnover is due to stress. Experts estimate it costs approximately 150 percent of a position’s salary to replace a worker.
People get sick from stress at work and the cost associated with stress is hence significant to the employer. Stress is associated with constraints and demands. Constraints prevent the person from doing things what he or she desires. Demand refers to the loss of something desired. Stress is highest for the individuals who perceive they are uncertain as to whether they will win or lose and lowest for those who think that winning or losing is a certainty.
For many individuals there is often discord between their personal and professional lives. It has often been said that individuals should strive to keep personal and work lives separate. However, in reality, considering the interconnectedness and wholeness of self, making such a distinction is impossible.
Executives, in particular, find difficulty in separating personal from professional lives, often experiencing an integration of both as an overall conceptualization of self. Excessive work demands, long hours, and stressful work conditions lead not only to professional dissatisfaction, but also frustration and challenges in other areas of life.
Research has shown that there is significant cost to organizations and individuals when stress is not addressed. It is reported that role stress is now the most reported cause of lost work days due to injury or ill health, with more than 13 million lost days reported. It has been found that stress has negative implications for individuals in multiple areas which impact organizational success including absenteeism, employee attitudes, and commitment to the organization, retention rates, and performance.
In addition, organizations are recognizing the importance of gaining a greater understanding of the etiology and implications of stress, as well as working with professionals in the development of strategies to mitigate the negative impact of stress in individuals and the company. Similarly stress in the workplace has negative impacts on job satisfaction, work performance, and absenteeism resulting from decline in individual health.
From an individual perspective, approximately 2 million people in the UK indicated suffering from an illness which was exacerbated by role stress. Among white-collar workers, it was found that cumulative blood pressure levels were significantly higher for individuals who experience consistently high levels of stress.
It is also found that there is a statistically significant relationship between reports of non-work stress and job performance. Therefore, when considering the possibility that non-work stress could be the result of a life which is out of balance and decreased job satisfaction could result in increased role stress, it is reasonable to hypothesize that there is a connection between life balance and work stress at some level.
In contrast to the negative impact which stress can have on individuals and organizations, there is increasing interest in integrating wellness and life-balance initiatives to mitigate the effects of stress. Organizations are recognizing that enhancing emotional and cognitive components of individual well-being yields significant positive results to the organization.
Increased well-being leads to heightened levels of job satisfaction and decreased burnout among employees. It is also found that approximately 90% of organizations with over 50 employees have instituted wellness programs within the company, recognizing that such programs have significant impact on individual and organizational health, wellness, and success.
Considering the substantial negative results...