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Organizational stress: Why we need to manage stress at work

Organizational stress: Why we need to manage stress at work

by Tim Wayne on May 7, 2016

It should come as a surprise to nobody that work can stress us out. Stress isn’t always bad; stress can motivate us, and help us prepare for the unexpected.

However, chronic stress can have a dire impact on our personal well-being — which can in turn impact the performance of our business or organization. This is what we call organizational stress, and it should come with a toll big enough to grab the attention of employees and managers alike.

The high costs of high stress

When we’re stressed out, it can tax our bodies and minds to surprising lengths. Organizational stress has been demonstrated to increase costs through higher health benefit payouts, more absenteeism, higher turnover, and increased workers’ compensation claims.

Researchers estimate that the combined cost of employee stress in the United States rounds out to around $300 billion per year. Regardless of your workplace’s management style, this fact alone should make stress management a priority for everyone involved in your organization — and this begins with effective management.

Management strategies to reduce organizational stress

Managers have the power to reduce stress in a number of ways, and it all starts with open lines of communication. (And this means much more than a passive ‘open door policy’.) Leaders need to regularly reach out with employees to share ideas, concerns, and constructive feedback.

They should not only measure and facilitate performance, but also resolve obstacles and other everyday stressors that might impede an employee’s workday. Employers can also reduce stress by offering greater flexibility, ample rewards, and motivational strategies.

The infographic below, produced for the Online MBA Program at Pepperdine University’s Graziadio School of Business and Management, illustrates the impact that organizational stress can have on businesses, and what we can do about it to make employees happier and more productive at work.

Surviving Organizational Stress

Tim Wayne

Tim Wayne

Tim Wayne is a digital content marketer and contributor to several healthcare blogs. He is interested in healthcare, education, and small business management. Since graduating from USC with a Bachelor’s Degree in English Literature, Tim has worked with websites across a wide range of industries in writing website copy and promoting content online.

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