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Stress-Related Illness At Work Can No Longer Be Ignored By Organizations Striving To Be Competitive. Why Does Health Matter?

Workplace stress, anxiety and burnout are becoming more and more pronounced and widespread throughout the workforce. In July 20, 2000 the Economic and Business Roundtable on Mental Health published a study, "The Unheralded Business Crisis in Canada - Depression at Work" that showed that the cost of these and other mental illnesses at work is growing exponentially. Unfortunately there are many other hidden costs that can also be ascribed to this source of unhealth or "dis-ease". Organizations where staff are working under conditions of debilitating stress or along side others who are over-stressed experience:

  • decreasing employee satisfaction;
  • increased use of Employee Assistance Program services (EAP);
  • social and work disruption caused by individuals who under-perform or who are often absent, increasing the stress on everybody;
  • increased conflict;
  • lowered innovation and collaboration and motivation;
  • decreasing meeting of deadlines; and
  • most serious of all, a reduced quality of customer service.

Clearly all these indirect costs add up to more than those measured above. In fact, in Canada in 1999, the associated costs of lowered productivity absenteeism and drugs prescribed specifically for these illnesses are currently estimated over $8 billion. That is equivalent to 13.4 % off the annual operating profits of Canadian enterprises.

However all is not black. A study by Sears Roebuck in the USA has shown that where there is an increase of 5% in employee satisfaction, there occurs a 1.3% increase in customer loyalty. In turn this provides an increase in the bottom line of 0.5%. So where staff and managers begin to thrive, all other company success measures begin to move in the right, more profitable direction. As health rises, innovation, collaboration and productivity increase. Processes flow more smoothly. Staff retention is improved dramatically.

What is really interesting about today's situation is the wall of silence and denial about this in our organizations. In spite of the scale of what this increasing "dis-ease" is costing, it is not measured and little or no leadership attention or focus is given to this scourge. Most of the executives we have spoken to about this issue, claim to have it well under control. "We have a wonderful EAP program!" they say.

It is possible to build healthy organizations. It is also possible to measure your progress towards that goal with leading indicators. The Sears study shows how these indicators predict future performance.

Read further.............


What Do We Mean By A Healthy Organization?

Every human being or human system such as an organization has three states on a continuum. At one end there is Distress or Dis-ease in the middle is Normality and at the other extreme is Health.

A state of Distress or Dis-ease is that sum of personal and work environmental conditions and stress that result in the individuals in an organization performing individually and collectively below expectations and potential as well as below the industry average. Where (2 + 2 < 4) In the human being this could be compared to an average couch potato.

The state of Normality is that condition where the individual performance and the organizational performance is at expected levels and comparable to the industry average. Where (2 + 2 = 4) e.g. a regular exerciser or active sportsman or woman.

Health then, is that state in individuals and their organizations that allows them to perform at levels far above what might possibly be expected, even by themselves - certainly higher than any of their competitors. This is where the organization becomes best in class, regenerative, agile and resilient. (Where 2 + 2 > 4) e.g. a world class athlete continually moving beyond his or her own limitations.

If no ongoing stimulation of the healthy system takes place, this healthy system will gradually lapse into a new form of normality, with its resulting restricting paradigms, fixed attitudes and behavioral habits that naturally grow out of the new way of working.


What Are The Sources Of "Dis-Ease" In Organizations?

Many studies of health at work have pinpointed that there are two avoidable causes of stress in the organization. The reverse is also true, that there are two dependable sources of generating health and thriving in the workplace. The most important source of health is the leadership style and behavior of the individual's immediate supervisor, the second source is the organizational practices that spark creativity, collaboration and the impulse to take initiative to make things happen in extra-ordinary ways.

Our research with clients has continued to show that the leadership behaviors that encourage health are:

  • giving vision and direction while allowing individuals freedom to innovate and take personal initiative
  • sharing clear expectations of what is required
  • giving frequent recognition and praise for good work and consistent feedback on performance
  • resolving conflicts fairly and appropriately
  • encouraging development and learning
  • being supportive , trustworthy and treating everyone with respect

The same research shows that the organizational practices that create a compelling place to work are:

  • clear company goals and the celebration of all successes
  • encouraging participation in decision making
  • having shared values that are practiced throughout the organization
  • supplying the right materials, tools and equipment to do the job
  • encouraging communication and knowledge transfer
  • clear, fair rewards


How Do We Move Our Organizations To Health?

As the Quality movement showed in the early 1980's the route is clear. There are three vital management tasks needed. They are Measurement, Attention and Focus.

Health is a leading indicator of future success. We have created a Health Index that clearly shows where the individual employee and the overall organization is on the scale of Dis-ease to Normality to Healthy. The survey instrument asks every individual in the organization to rate their own well-being and the supporting leadership behaviors and organizational practices. These results not only reveal the departments where stress is becoming destructive, but also the level of thriving, innovation etc. It pinpoints in detail what interventions or training are required to move the whole organization towards health.

Management Attention is needed to monitor both the ongoing level of health and the interventions moving the organization towards health.

The Focus on health is a focus on future success and needs as much attention as sales and other short-term results. Focusing on creating the desirable leadership behaviors and organizational practices that support health have shown remarkable short-term results.

The move to health can happen fast. A consulting company working with a trans-national retailer with 140 stores across Canada, has in only six months after administering our an Employee Engagement Survey and helping them follow a change process, they found that the turnover of their store management dropped from 38% to 13% in six months.


The Competitive Edge

The competitive edge today is the ability of an organization to tap the creative brain-power of its employees and to help them translate good ideas into customer centered products and services. Only in a Healthy organization can this happen. Health is the underlying driver of all success. Are enough leaders giving organizational health enough measurement, attention and focus? Probably not. However this is not because it is difficult or expensive. Our clients have proved it. Moving towards health saves a great deal of money and releases human energy and creativity.


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