Jovana Trifunović

How much does stress cost?

Work constitutes a significant part of people's lives, and their mental health and well-being are crucial both on a personal level and for the sustainability of companies and economies...

Jovana Trifunović

Consultant


We live in an era where companies have realized that their focus should be on employees and their well-being, which has become even more apparent after the crisis of 2020, which had significant consequences for people's mental health. Today, people represent the most valuable "asset" of a company, and without them, there is no sustainable business or good business performance.
The issue of stress and burnout syndrome is becoming increasingly prominent. The World Health Organization defines burnout syndrome as the result of chronic workplace stress that has not been successfully managed and is characterized by three dimensions: a sense of exhaustion, mental distance from work, and reduced professional efficacy. In addition, the World Health Organization highlights work-related depression, which leads to reduced productivity or the inability to work, as one of the leading causes of illness worldwide. Work and the workplace constitute a significant part of people's lives. The average person spends at least 40 hours a week at work, and according to a 2020 Eurostat study, the average duration of working life in European Union countries is estimated at 35.7 years. This shows that work is essential to people's health and mental well-being. According to the European Agency for Safety and Health at Work research, workplace stress is Europe's second most commonly reported work-related health problem. Whether working in offices or factories, employees are increasingly experiencing workplace stress and high work pressure caused by various factors. Psychosocial risks refer to all aspects of work that can cause damage to employees' mental or physical health. High levels of psychosocial risks are usually the result of inadequate job planning, poor work organization, poor management of employees, and dysfunctional interpersonal relationships in the workplace. Exposure to these risks leads to increased workplace stress to the extent that it often causes damage to mental or physical health. Psychosocial risks and workplace stress are among the most challenging issues in occupational safety and health and significantly affect individuals, organizations, and national economies. In addition to the fact that stress and constant psychological pressure can lead to serious health problems, such as mental health issues, cardiovascular diseases, musculoskeletal disorders, or diabetes, workplace stress negatively affects not only the health of workers but also the performance of companies and the overall national economy. In other words, work-related stress is costly. When viewed from the organizational level, stress is expensive because it adversely affects workplace productivity, leading to more frequent absenteeism or high employee turnover. At the societal level, poor health associated with chronic work-related stress and constant exposure of employees to psychosocial risks can burden public health institutions and lead to lower economic productivity, thus negatively impacting a country's gross domestic product (GDP). According to research funded by the European Union, the costs incurred by European companies due to work-related depression in just one year are estimated at a staggering 617 billion euros. Most of this amount consists of employer costs resulting from employee absenteeism and presenteeism (272 billion euros) and lost productivity (242 billion), while the remainder relates to healthcare and social care costs. Issues related to mental health and stress are often misunderstood and stigmatized. However, if viewed as an organizational problem, psychosocial risks and stress are as significant as any other occupational safety and health risk. The fight against psychosocial risks and workplace stress can be costly for companies, but the reality is that ignoring this problem can cost them even more. Therefore, the question arises: what best practices should companies implement to prevent workplace stress? The initial steps that should be taken directly related to workplace stress include determining reasonable working hours, workload, acceptable deadlines, and clearly defining job tasks and responsibilities. Additional benefits from previous company practices that have proven significant in reducing workplace stress include the possibility of flexible working hours and remote work, extra days off, encouraging social interactions among employees outside working hours, or implementing a four-day workweek, which has become popular in some countries recently. The justification for this trend is based on the assumption that productivity will increase if the number of working hours is reduced. However, there is no universal formula for solving the problem of stress, burnout, or work-related depression. Still, companies must become aware of these issues to find and implement practices that will simplify and improve the lives of their employees during and outside working hours.