Organisational consequences of stress
Organisational consequences of stress
High staff turnover & recruitment costs
This is, perhaps, the most common of the organisational consequences of stress. Stressed employees do not tend to enjoy their working environment. While some may have the confidence to seek their employer’s help in combating the stress, others may feel they have no option but to leave the organisation and remove themselves from the stressful situation; sometimes as a result of medical advice. Also, employees who seek help may not receive the help they require and so choose to leave the organisation. Unfortunately, many organisations make no attempt to ascertain the true reason for an employee’s resignation and so never realise that their organisation has an issue with stress.
High absenteeism and presenteeism levels
Stressed individuals tend to experience more illness and so take more time off due to illness. Absenteeism can also be the result of staff feeling that they simply cannot cope with going into work so they attempt to escape the stressful situation by remaining in the safety of their own home. In many instances, these staff will make it into work but will be unable to contribute much. They are physically present but psychologically they are elsewhere. This is referred to as Presenteeism.
These factors are usually just attributed to poor discipline on the employee’s part. Where organisations recognise absenteeism and presenteeism as organisational consequences of stress, they are able to take corrective action, to the benefit of both staff and the organisation, before things escalate out of control.
Reduced productivity levels
As exposure to stress is prolonged and chronic fatigue kicks in, it becomes more difficult for the employee to work to an optimum level. As fatigue sets in, concentration and motivation levels drop. This leads to mistakes creeping in to their work. It also takes longer to complete tasks. The quantity and quality of the employee’s work begins to suffer. This lowers the productivity levels of the company.
Increased health and safety issues
This is more common in workplaces which are more manual in nature. Employees tend to take more risks and suffer poorer concentration when they are stressed. This combination is a recipe for increased accidents which in turn increase litigation, insurance and medical costs for the organisation.
Litigation
Organisations have a legal obligation to provide a safe and healthy workplace for their employees. This can include adequate training, safe work practices, and a workplace free from bullying and harassment. Where an employee experiences stress due to the organisation failing to meet its legal obligations; the employee may seek a legal remedy. This may result in costly legal proceedings and damage to the organisations reputation. Of all the organisational consequences of stress, the one which best motivates organisations to take action is the threat of litigation.
Reputational damage
The reputation of the organisation is damaged by the culture of stress which can develop as a result of the failure to manage stress at both an organisational and individual level. It doesn’t take long for a company to develop such a reputation; though it can take a long time to lose this reputation. With reduced productivity levels and the decreased performance of staff a culture of poor customer service can develop.
Increased training costs
As a result of higher staff turnover, more induction courses are required. The organisation may also have to spend more on interpersonal skills, health and safety and stress management training.
If you feel that you may be experiencing stress, check out Stress Free Living.
The organisational consequences of stress arise due to the failure to manage stress at both the organisational and individual levels. A culture of stress can soon develop with many damaging consequences for the organisation. Where such a culture has developed there is no quick fix solution for the organisation. The organisational consequences of stress are best avoided by adopting a stress management culture in the organisation requiring the ‘buy-in’ of both management and staff.