Work Stress. Why Organisations should focus on it and provide effective examples E-Book

Irene Anne McLaughlin

• Herausgeber: GRIN Verlag
• Sprache: Englisch
• Veröffentlichungsjahr: 2016

Beschreibung

Seminar paper from the year 2015 in the subject Leadership and Human Resources - Occupational burnout and stress at work, , language: English, abstract: Stress can pervade anyone at any level of business. Recent research shows that work-related stress is widespread and not confined to particular sectors, jobs or industries. Stress is not an illness; it is deemed to be a state. Further research deemed that the condition could be both mental and physical where stress becomes too excessive and prolonged. This varies from individual to individual affecting those unable to cope. It is unclear whether this is stress or depression, however, it is linked with high sickness absence, staff turnover, and increased errors. Therefore, it is a cost to both businesses and individuals. This paper focuses on why organizations should focus on work stress and provides examples of local organizations effectively doing so.

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Table of Contents

1. Introduction

2. The Business Case Why Organisations Should Focus on Work Stress

2.1. Economic Impact

2.2 Organisational Outcomes

i. Operational Issues and Costs

ii. Intangible Costs

2.3 Individual Outcomes

2.4 Models:

i. Inverted U Shape Relationship – k/a Yerkes-Dodson Law 1908

ii. Person - Environmental Fit Model (Cooper et al. 1988)

iii. Demands – Support – Constraints Model (Payne 1979)

2.5 Ways to Manage

i. Institutional Programs:

ii. Collateral Programs:

2.6 Organisations Effectively Dealing with Work Stress

i. Award Winning Organisations Dealing with Stress

ii. Local Organisation Examples of HSE Three Level Approaches

3 Summary

4 Conclusion

5 References

6 Appendices

1. Introduction

Stress can pervade anyone at any level of business. Recent research shows that work-related stress is widespread and not confined to particular sectors, jobs or industries. The Health & Safety Executive’s (HSE) formal definition of work-related stress is:

"The adverse reaction people have to excessive pressures or other types of demand placed on them at work(HSE, 2015)."

Stress is not an illness; it is deemed to be a state (Acas, 2015). Dr Selye in the 1920s coined the phrase “stress” as a non-specific physical strain on the body (Selye, 2015). Further research deemed that the condition could be both mental and physical where stress becomes too excessive and prolonged. This varies from individual to individual affecting those unable to cope. It is unclear whether this is stress or depression, however, it is linked with high sickness absence, staff turnover, and increased errors. Therefore, it is a cost to both businesses and individuals. For athletes; actors; musicians’;, etc. stress is deemed to be good and enhances performance.

There is a difference between (motivating) pressure and stress (Lancashire Training, 2015). Pressure can help achieve goals and perform better.Dr Sheperd writes about the epidemic of the 21st century, differentiating "real" stress (physiological response) from "pop" stress (being stressed out by your boss) (Sheperd, 2002, p47).

2. The Business Case Why Organisations Should Focus on Work Stress

Work stress can be easy to manage and needs the right fit between the board, line managers and employees. Matched with open discussions and action taken regarding goals and achievements, the organisation can create a healthy environment. However, many organisations do not have this, creating a financial and non-financial impact. The key issues are: economic; organisational; and individual. This is why it is imperative that organisations address these negative issues and positively act upon them.

There is also good stress, called eustress, which gives us energy and motivates us to strive and produce (Muse, et al., 2003). This is the stress/pressure that athletes and artists place reliance. Robbins and Judge consider positive and negative attitudes and commentaries: “My job is great” is a positive attitude, and “My job is boring and tedious” is a negative attitude (Robbins & Judge, 2013. p135). Creating the right environment for employees is challenging, however, achieving this employees will outperform in sales, profit, and self-esteem.

2.1. Economic Impact

Stress is a cost to the British economy estimated at £3.7 billion per year, according to the Health and Safety Executive. (HSE, 2015). However, the entire cost of dealing with issues relating to stress has been estimated at £6.5 billion per year (Shearer, 2013).

Only 13% of employees worldwide are engaged in their work (IHRM, 2013). Gallup estimates that active disengagement additionally costs the UK between £52 billion and £70 billion per year. Presenteeism is the act of employees attending work while ill and not performing (Centre for Mental Health, 2015). Studies highlight the impact of improved engagement correlated with enhanced profitability and return on investment (Macleod & Clark, 2012).

2.2 Organisational Outcomes

Management needs to adopt strategies to reduce stress for employees. There are indirect costs such as continuity and succession planning, business interruption, and competitive disadvantages due to the loss of skills and resources. Management must address future trends, and a stable workforce is essential to do this.

Business Link analysed 543 Small Medium Enterprises (SME's) (Appendix 3), and they proved that over 50% of those surveyed felt that managing stress was an important part of their role. The greatest score was the morale of staff, with impact on productivity falling in the top 3. This compared to the legal consequences of managing stress with only 11%.

i. Operational Issues and Costs

Increased absenteeism and labour turnover is a high cost for employers. Deterioration in performance with reduced output/quality are signs of stress. Presenteeism has an impact on organisations with a cost per employee per annum of £605 (presenteeism) and £335 (absenteeism) (Cooper, 2013).

Further productivity/cost issues derive from group stress and the associated dysfunctional behaviour. Signs of stress in a group can manifest with disputes and disaffection. Stress can vary from individual to individual (Bortz, 2010). Numerous publicised cases detail complaints, grievance procedures, and huge settlements. Such procedures are ordinarily preceded by sickness absences where the employee cannot cope with work (Acas, 2006). This creates additional costs within the organisation.

Burnout is a chronic and highly debilitating form of stress (Levinson, 1996). Compensation Costs for victims of burnout are predominantly derived from idealistic and self-motivated achievers. In an organisation, such individuals need to be nurtured to ensure that the best workers/high achievers are not disabled and, therefore, avoiding lost contribution. These A-Type personalities are often at the top echelons of businesses and, therefore, the cost of replacing them and compensating them for work related stress is high. Examples of compensation are a former hospital boss (£500,000) (Carr, 2013), and a teacher (£250,000) both paid for stress-related injuries (Marshall, 2012).

There are low incidents of extreme and violent behaviour, and it is unusual to have incidents of workplace rage. However extreme acts publicised, need to be avoided at all costs in order to prevent atrocities. Postalemployee Patrick Henry Sherrill shot 14 co-workers before turning the gun on himself (Ames, 2005. p28). This psychological disorder leads people to commit insane acts. Not only are there compensation costs to account for, but brand damage are immeasurable.

ii. Intangible Costs

Within an organisation that has increased reports of stress a cycle of stress can occur. It is important that management acts quickly to try and alleviate these pervasive organisational maladies. This often results in poor performance that leads to customer dissatisfaction and complaints. The individual/s then feel worse due to their substandard performance resulting in further stress, illness, grievance, and finally exit. “The problem is, people then get stressed-out about being stressed-out” (Muse, et al., 2003). The resulting recruitment needs are made difficult in attracting new staff into a toxic environment.

Many causes of stress exist within an organisation (Appendix 1) (Mullins, 2013. p108). A Gallup Poll 2012 on a survey of employee stress revealed that only 29% of US employees were completely satisfied with on the job stress:

Gallup Poll 2012

Figure 1 Gallup. (2012). U.S. Workers Least Happy With Their Work Stress and Pay. Available: http://www.gallup.com/poll/158723/workers-least-happy-work-stress-pay.aspx.(accessed 27th Feb 2015.)

Gallup figures clearly indicate that there is a problem with current methodologies to alleviate stress and that they are either not being used or not working. (Appendix 7) details some recommendations to relieve this state.

2.3 Individual Outcomes

Establishing an identity through work alone can restrict a sense of self and make individuals vulnerable to depression, loss of self-worth, and loss of purpose when work is threatened (Muse, et al., 2003). Stress can have immensely debilitating effects on an individual and can attack both psychologically and physiologically. The stigma of stress can force concealment and have extreme consequences.

Positive social relationships in a work environment help to lower stress at work and, therefore, reduce stress impacts (Robbins & Judge, 2013. p135). Individual external outcomes can arise such as family death; terminal illness; threat/abuse; economic issues, etc. impacting individuals stress levels.

Humans are complex, and the structure of mood can create an impact on employee performance (Appendix 2) (Robbins & Judge, 2013. p135). One personality type, however, seem to enjoy stressful negative environments, and that is the Machiavellian personality (Hunter, et al., 1982). They engage in more deviant behaviour that can create high levels of stress in order to win more and persuade others to do what they may not ordinarily undertake.

Figure 1 details the numerous outcomes for an individual. Detailed in blue below are outcomes that affect men, and detailed in pink are outcomes that affect women.

Health Effects of Stress

Figure 2 HSE. (2015). What is Stress?. Available: http://www.hse.gov.uk/stress/furtheradvice/whatisstress.htm. Last accessed 5th Mar 2015.

Stress can impact on an individual's physiological make-up as detailed above.Stress can also cause psychological dissatisfaction in outcomes such as tension, anxiety, etc. and can result in burnout. Victims of burnout tend to be idealistic and self-motivated achievers and often seek unattainable goals that lead to unrealistic expectations and disappointment when unmet. Many of these individuals can never work again due to the effects.

Changes in productivity can be a behavioural outcome from individuals. This can be linked with absenteeism and staff turnover. Stress can increase smoking and drinking habits, rapid speech, display fidgeting, etc. Rollinson noted a cognitive outcome in decreased concentration and attention span, and unpredictable response speeds (Rollinson, et al., 1998. p145). This is also substantiated in Harvard Business Review (Muse, et al., 2003).

2.4 Models:

i. Inverted U Shape Relationship – k/a Yerkes-Dodson Law 1908

There remains controversy over this theory as many researchers view stress as a linear relationship. This curve changes with the person, task and time and that efficiency increases when stress increases, but only up to a point; after then, performance falls off (Muse, et al., 2003).

Inverted U Shape Yerkes-Dodson Law 1908

Figure 3 Muse, A; Harris, S; Feild, H. (2003). Has the Inverted-U Theory of Stress and Job Performance Had a Fair Test?. Human Performance. 16 (4), 349-364.

This simplistic model works best in manual labour environments, however for “A” type personalities, athletes and artists who perform their best work when under high stress this is not a good framework. Individuals would not get out of bed in the morning in the low-pressure state and would consider that work was boring and demotivating. As a contrast to this the Dimensions of Resilience (Appendix 7) display tools required to counteract high-stress periods (Lewis, 2013). However, both models omit the happiness factor that Harvard Business Review highlights as essential, and the elasticity of human nature (Muse, et al., 2003).

Goldman Sachs makes effective use of the Inverted-U Shape model albeit no doubt a stretched version. They focus on work stress alleviation to attract and motivate employees. In addition to their remuneration packages, equity programmes, healthcare, and retirement benefits they have an array of wellbeing services called the Wellness Exchange (Goldman Sachs, 2015). The idea being that to keep employees at the peak of the inverted U the Bank works to ensure that they and their family are supported.

Goldman Sachs Wellness Exchange Program

Figure 4 Goldman Sachs. (2015). COMPENSATION AND BENEFITS. Available: http://www.goldmansachs.com/careers/why-goldman-sachs/compensation-and-benefits/compensation-and-benefits.html. Last accessed 5th Mar 2015.

ii. Person - Environmental Fit Model (Cooper et al. 1988)

For an individual not to suffer from stress at work, it is important that they fit with the: task requirements; and situational /contextual demands. One of the best organisational examples of this is John Lewis and its subsidiary Waitrose. The John Lewis business model gives each employee part-ownership of the company, a share of its annual profits, and a say in how it is run (a model social enterprise) (Kingsley, 2012). Councils and care homes are being encouraged to emulate their model by Central Government. However in practise difficulties arise in the application of this model, regarding what is fit and the effects of fit (Edwards & Cooper, 1990).

In contrast to the John Lewis, model is the legal profession with its high rate of alcoholism due to work stress.Solcare, the Law-Society-funded charity for solicitors with alcohol or drug problems, says many solicitors cope with stress by becoming dependent on drugs or alcohol (Verkaik, 1998). The suicide of a senior local authority solicitor unable to cope shocked the legal profession, and reactive measures were taken to try and combat this issue where the environment calls for long hours and extremely stressful for the person. To combat this, the legal health support charity LawCare (a confidential helpline) says 70% callers ring because of stress. The Law Society’s pastoral care also receives 2,000 calls a year (Law Gazette, 2015).

iii. Demands – Support – Constraints Model (Payne 1979)

Stress is a lack of balance between high demand, support, and high constraints/low control organisations. Jobs such as the military, fireman and prison service officers whose employees work with high demands and high constraints, resulting in suffering.

A report conducted by the University of Bedfordshire identified that prison workers suffered immense work stress:

Independent Survey of Prison Officers

Figure 5 University of Bedfordshire. (2014). Independent Survey of Prison Officers. Available:http://www.beds.ac.uk/news/2014/november/independent-survey-of-prison-officers-reveals-staff-totally-demoralised. Last accessed 5th Mar 2015.

The lack of autonomy, break times, and decision-making provides this sector with high levels of stress.Prison Smart (Stress Management and Rehabilitation Training) in the UK operatesa globally recognised programme to reduce stress (Clinks, 2015).

2.5 Ways to Manage

i. Institutional Programs:

Institutional Programmes are designed to manage stress through established organisational mechanisms: improved selection; placement; and training. For example to hire people able to cope with the pressures associated with their role and to provide training. Organising out of work activities/ looking after staff that may be experiencing psychological issues is part of job enrichment goals. Particularly for shift workers suffering from sleep deprivation such tools are required. Organisations need to ensure that adequate resources are available with the necessary authority and discretionary powers for employees exerting control over their work.

Increases in rest periods are necessary for high-stress jobs and particularly in military situations. The British Army frontline had frequent rotations and rest periods in the war. Alternatively the German Army in the autumn of 1918 had repeated exposure to the stress of combat which led to a collapse of morale (Cornish, 2014). Although not possible in military environments, organisations should seek to minimise bureaucracy to provide some control back to the employee.

Enhanced career development and participation in decision making all contribute towards alleviating stress. Regular performance reviews and ongoing monitoring should be in place to detect not only employee productivity but also employee psychological states. Improved communications reduce role ambiguity, and operating management by objectives (MBO) align the goals of the individual and organisation (Drucker, 1954. p121)

ii. Collateral Programs:

Collateral Programs are designed to specifically alleviate employees stress levels via organisations investing in training, counselling, gym memberships, yoga, massage, etc. The above has not been proven, however, creating an environment where employees can express opinions and have constructive fun, manifesting other benefits such as acquiring and giving shop floor information. Talking to staff and changing the state of physiology such as jumping up and down as extolled by Anthony Robbins can unleash a fun/high performing culture (Robbins, 2015). Feeling part of the team all doing the same at every organisational level can alleviate stressful situations.

Business Link has historically facilitated happiness coaches to act for clients and offered copious amounts of training and support to combat work stress (Appendix 3) as part of programmes supported by Central Government. Training, support and counselling are just one way to help alleviate this problem. Collateral programmes need to be as individualised as the employees receiving them.

2.6 Organisations Effectively Dealing with Work Stress

i. Award Winning Organisations Dealing with Stress

(Appendix 6) Details the top 25 companies to work for in the UK (extrapolated from 100) and work stress management is a key consideration under wellbeing. All of the other categories create an impact on workplace stresses (O'Connell, 2015). Mischcon De Reya (a law firm) jumped 13 spaces from 20 to number 7 on the list. Working in a tough and stressful legal environment known for alcoholism Mischcon de Reya offers staff subsidised gym membership, cycle schemes, medical service, and yoga as part of a suite of benefits (Mishcon De Reya, 2015).

Siemenswas recognised for the best in breed for stress management using the Employee Assistance Program (EAP) (Healthy Workplaces, 2014). Acciona Energia and Airbus were also commended (PRWEB UK, 2015). HSBC Bank Plc also has a stress management policy (Appendix 5) (HSBC, 2015). They have in addition over the last few years implemented compulsory two consecutive weeks annual leave policy with zero access to company telephones or computers. This has a dual benefit in mandatory rest periods and fraud detection.

ii. Local Organisation Examples of HSE Three Level Approaches

John Lewis and its subsidiary Waitrose are two (amongst many) organisations in the UK using the HSE Three Approaches model. They take action at the primary, secondary and tertiary level but in slightly different chronology,

John Lewis and Waitrose HSE Three Level Approaches

Figure 6 HSE. (2015). John Lewis: Work Related Stress Case Study. Available: http://www.hse.gov.uk/stress/casestudies/john-lewis.htm. Last accessed 5th Mar 2015.

This approach has proven to alleviate stress and create a more conducive environment. John Lewis has a fully inclusive employee policy as they operate as a social enterprise where employees are also shareholders. (Appendix 8).

3 Summary

Dr Rosh of the American Institute of Stress stated that stress is an unavoidable consequence of life (American Institute of Stress, 2015). Humans are complicated, and although the brain is not a muscle the more it is exercised, the larger it gets. Dealing with stress in individuals is like dealing with muscles. Some can be stretched a very long way and some break at the first hurdle. If we analyse Hook’s law on elasticity as a principal of how much an individual’s tendons can be stretched (Sokolnikoff, 1956) we can see below that permanent deformation could be the equivalent of permanent stress disability requiring retirement and compensation. In extreme cases the fracture in Hooks Law could be likened to the shootings in the USA.

Hooks Law of Elasticity

Figure 7 Sokolnikoff, S. (1956). Hook's Law. Mathematical Theory of Elasticity. 1 (2), p56-58.

With training, this stretch can be enhanced but only to a point dependant on the individual. The missing part in all of the models discussed above is that there still needs to be a lot of research carried out in this area. Development around the flexibility of the human psyche and how much stretch can be made would be beneficial to businesses and individuals.

4 Conclusion

There is a strong business case why organisations should focus on work stress. The cost impact is huge to businesses globally. Disruption within businesses regarding continuity and business interruption results in stressed organisations being uncompetitive. Good stress management leverages competitive advantage. There is simply a higher return on investment to deal with work stress and alleviate it at the earliest possible moments. The costs affect how the organisation is seen by customers, suppliers and the wider community.

The issue of extreme violence, where there is the most amount of stress placed upon fragile employees, and can have long lasting/ irrecoverable impacts on organisations. Most employees do not result in extreme behaviour; however many are forced into permanent retirement due to the psychological stress impact.

The U shape model shows a perfect balance between pressure and peak performance. The person fit model assumes that all employees will feel the right fit with the organisation and the results. The demands support constraints theory is very simplistic and does not fit the majority of organisations. In the absence of the perfect employee, environment and organisation there are many ways to manage work stress through both institutional and collateral programmes. However, these need to be flexed to individual and organisational goals. Siemens, HSBC, John Lewis and Waitrose are all good examples of companies attempting best practice. However, Mischon De Reya is achieving effectiveness with its policy in an extremely high-stress environment.

The theory models are not ideal in practice, as flexible and elastic measures applied well and acted upon are required in real life. Having looked at this, some organisations are doing well however the challenge for businesses is effectively and affordably combatting this. With further research perhaps around the elasticity approach of Hook’s Law then utopia can be achieved across the board with a more flexible model.

5 References

ACAS. (2015). Advice leaflet - Stress at work. Available: www.acas.org.uk/index.aspx?articleid=815. Last accessed 5th Mar 2015.

ACAS. (2006). Discipline & Grievance at Work. Available: http://www.acas.org.uk/media/pdf/o/q/h02_1.pdf. Last accessed 5th Mar 2015.

American Institute of Stress. (2015). Stress, in addition to being itself, was also the cause of itself, and the result of itself.. Available: http://www.stress.org/military/combat-stress/management/. Last accessed 5th Mar 2015.

Ames, M (2005). Going Postal: Rage, Murder, and Rebellion: From Reagan's Workplaces to Clinton's Columbine and Beyond. New York: Soft Skull Press. 28.

Bortz, W. (2010). The Prevention Mindset. Available: http://www.walterbortz.com/pdfs/bortz_complete_wellbeing_2010_09.pdf. Last accessed 5th Mar 2015.

Carr, J. (2013). Stressed hospital chief wins £500k payout from NHS.Available: http://www.express.co.uk/news/uk/421341/Stressed-hospital-chief-wins-500k-payout-from-NHS. Last accessed 5th Mar 2015.

Centre for Mental Health. (2015). What is Presenteeism. Available: http://www.centreformentalhealth.org.uk/employment/presenteeism.aspx. Last accessed 5th Mar 2015.

Clinks. (2015). PRISON SMART (INTERNATIONAL ASSOCIATION FOR HUMAN VALUES). Available: www.clinks.org/partnership-finder/47930. Last accessed 5th Mar 2015.