HR MANAGEMENT - How Does Employee Stress Affect the Organization?

How Does Employee Stress Affect the Organization?

by Michelle Reynolds, Demand Media

Employee stress can snowball into a mountain of negativity affecting your business.

As the economic environment places more pressure on businesses to succeed, competition becomes fierce. Business owners may face brutal burdens to keep their companies functioning at a profit, and a trickle-down effect can occur resulting in the creation of employee stress. If not addressed, the stress experienced by workers can work against attaining business goals. Managers and business owners can ward off the potentially negative organizational effects of employee stress by becoming familiar with the signs of stress in business and implementing some simple remedies.

Effects of Stress

Your organization may experience a variety of negative effects as a result of stressed workers. You might notice an increase in instances where an employee becomes argumentative or easily agitated. He may exhibit a change in behavior, such as smoking heavily or eating unhealthy foods. The staff member may make more mistakes and demonstrate a general decline in performance. Frequent absenteeism or being late to work may also be stress indicators. Your business can suffer dramatically from a resulting lack of customer service, uncompleted projects, orders not being placed or a noticeable decline in sales.

Causes

Work-related stress can occur when employees feel they are not being fairly compensated or sense a lack of respect from their peers or managers. An over-abundance of rules or a lack of opportunities for advancement can contribute to the creation of stress. Employees may become stressed if they are not provided with a means to air their concerns, or if management is consistently unclear in communication. Employees who are micro-managed and who are not empowered to make decisions frequently experience stress. Team members who consistently experience a work environment where they do not feel valued may not be compelled to work to their potential. The result may reflect a business that is not achieving its financial or strategic goals.

Other Effects

Stress can also produce “counterproductive work behaviors,” which may include personality changes in employees, disrespect for coworkers or customers and exhibiting extreme anger toward managers. At some point, employees might begin disregarding safety procedures and company policies, thus jeopardizing themselves or others in the workplace. Stress in employees can also be brought on by personal issues occurring outside the business. Your company may suffer a loss in revenue if customers stop frequenting your business because of continual exposure to the adverse impact of employee stress.

Stress Management

You can help your employees avoid stress, and thus maintain business objectives, by providing workers with the means to communicate issues that bother them. Regular performance reviews, options for career development and a sense of autonomy in their jobs enable staff members to enjoy their work. You might make lifestyle coaching available as part of employee benefits, offering healthy ways to mitigate the onset of stress. Recognizing when an employee is overburdened with ongoing projects and then arranging for assistance for the worker is a simple stress-reduction measure. Making an effort to create an enjoyable work environment will positively affect employee productivity and your business.