There is a cruel irony to the phrase “making a living.” For many people in today’s fast-paced, rapidly changing global economy; making a living often means making themselves sick. Companies are increasingly trying to do more with less, often at the expense of their employees’ health. More and more workers are spending long hours at the office, struggling to stay on top of their work and fearing for the future of their jobs — all of which leads to stress. And therein lies perhaps the cruelest irony of all. The job stress and burnout that result from running a leaner, meaner operation often leads to lower productivity, higher absenteeism and increased use of employers’ health plans. In short, the way we work is not only costing American workers their health but American businesses money.
Job stress should not be confused with pressure or challenges. Everyone faces pressure and challenges on the job. The National Institute for Occupational Health and Safety (NIOSH) defines job stress as “the harmful physical and emotional responses that occur when the requirements of the job do not match the capabilities, resources, or needs of the worker.” In other words, unlike pressure or challenge, job stress is marked by an absence of control and feelings of being overwhelmed at work. The effects of this phenomenon can be devastating.
A growing body of evidence suggests that job stress is associated with a wide variety of physical ailments, including cardiovascular disease, musculoskeletal disorders and psychological illness. A 1992 St. Paul Federal and Marine Insurance Co. study found that problems at work have a more direct affect on workers’ health than any other life stressor, including family or financial problems. Consider the following:
Job stress is as much a business issue as it is a health issue. Job stress costs American businesses hundreds of billions of dollars a year in employee burnout, turnover, higher absenteeism, lower production and increased health care costs. The American Psychological Association estimates that 60 percent of all absences are due to stress-related issues, costing U.S. companies more than $57 billion a year.
Perhaps the single biggest expense issue facing any American business, big or small, is the rising cost of health insurance. According to the Kaiser Family Foundation’s “2004 Annual Employer Health Benefits Survey,” employer-sponsored health insurance premiums increased an average of 11.2 percent in 2004 — the fourth consecutive year of double-digit growth. Premiums for employer-sponsored health insurance rose at about five times the rate of inflation and workers’ earnings: 2.3 and 2.2 percent respectively. According to a 2004 New York Times article, health care costs are the second largest structural cost for manufacturers behind corporate income taxes.
Job stress is a key driver of health care costs. According to the Journal of Occupational and Environmental Medicine, health care expenditures are nearly 50 percent greater for workers reporting high levels of stress. This should come as no surprise. Many studies suggest that stress is a contributing factor in the development of chronic and degenerative conditions, such as heart disease and diabetes. While these conditions are ones that people can live with, they are expensive to treat. To the extent that stress contributes to these conditions, reducing stress will have positive benefits in terms of bringing health care costs down.
Many companies understand the impact of job stress on their business and have taken steps to address it. There has been a steady proliferation of employee assistance, wellness and stress-management programs in the marketplace. While these kinds of programs can be highly effective at helping employees cope with job stress, they don’t address the root causes of the problem. Research indicates that the single greatest cause of job stress is unhealthy workplace practices and conditions.
There are a number of organizational qualities that promote job stress. These include:
In many respects, the qualities of a healthy workplace mirror the six building blocks of a Winning Workplace. It means creating an organization that emphasizes trust, respect and fairness. It means communicating openly and honestly with employees and providing them with a vehicle to provide feedback. It is a matter of recognizing the contributions of workers and providing them with opportunities to grow as individuals and professionals. It means encouraging employees to work together as a team. And it means designing jobs with enough flexibility that employees do not have to sacrifice their personal lives in order to meet work objectives. Building such a work environment has a direct impact on the health of employees and an indirect affect on costs and productivity. In other words, a healthy workforce contributes to a healthy business.
(Editors Note: I recently interviewed Kenneth Feinberg for Mediate.com about his career over the last 30 years. He has managed the settlement of complex and difficult claims in the wake...By Robert Benjamin