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765 Managing Workplace Stress
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Impact of Stress on Employer

The World Health Organization (WHO) calls stress the health epidemic of the 21st century.

Image of worker under stress looking at notes on a wall and placing hands on her head.
The World Health Organization calls stress the health epidemic of the 21st century.

The financial impact of job-related stress is staggering. In the United States, the cost to employers is estimated at $300 billion per year. This large number comes from a variety of stress-related issues, including:

  • Lower productivity: Stressed employees often have trouble focusing, completing tasks efficiently, or meeting deadlines.
  • Absenteeism: Workers under stress are more likely to miss work due to physical or emotional health issues.
  • Staff turnover: High stress leads to burnout and resignation, which increases recruitment and training costs.
  • Workers' compensation: Stress-related injuries or errors can result in claims that impact insurance premiums and budgets.
  • Medical insurance and related expenses: Stress contributes to chronic health conditions such as heart disease, anxiety, and depression, which drive up health care costs.

Stress is currently the number one productivity issue in the workplace. Most employers recognize that high stress levels are directly linked to poor performance, lower morale, and ultimately, a loss of profit.

Key Statistics on Stress and the Workplace

  • 60% of lost workdays each year are due to stress-related issues, according to occupational health research.
  • It’s estimated that 70% to 90% of visits to health care providers are connected to stress-related conditions, such as headaches, high blood pressure, fatigue, and anxiety.
  • The Wall Street Journal reported that one-third of people surveyed had considered quitting their jobs because of stress—and 14% actually did.

These statistics make it clear: job stress is not just a health concern—it is also a major business issue. Employers who ignore the signs of stress in their workforce may experience more workplace accidents, decreased employee engagement, and higher costs overall.

Proactive stress management is not a luxury—it’s a business necessity. By recognizing the signs and sources of stress, and taking action to reduce them, employers can create a healthier, more productive work environment for everyone.

Knowledge Check Choose the best answer for the question.

1-6. What is the number one productivity issue in the workplace today?