As much as we like to see the glass half full, the truth is, it’s been a rough few years for pretty much everyone. Between mass layoffs, a pandemic, and the ever-present fear that robots are coming for our jobs, there’s plenty for modern workers to worry about.
According to data, 41% of employees experience “a lot of stress” at work. And those who feel tense during the workday are more than 3X as likely to look for work somewhere else.
But there is a bright side. By taking the initiative to fight employee stress where it counts, you can transform your company into a haven of productivity and wellbeing.
Why traditional approaches fail
Job stress is estimated to cost the US more than $300 billion due to absenteeism, low productivity, and accidents. Even worse, workplace stress has been reported to cause 120,000 deaths in the US each year.
“We've moved beyond ‘wellbeing as a strategy’ and now you should think about becoming a totally ‘Healthy Organization,” says Josh Bersin – one of many HR experts who has long been sounding the alarm about the threat of employee burnout.
Unfortunately, most people leaders and human resources (HR) departments are too busy responding to market forces and cost pressures to take a more proactive approach to employee wellbeing. Here’s how Peter Cappelli and Ranya Nehmeh put it: “Implementing wellness programs to help employees manage stress is like building trauma centers to deal with car accidents.”
Not a bad idea, but don’t mistake a treatment for a cure.
In their article for Harvard Business Review, HR’s New Role, Cappelli and Nehmeh suggest that the root causes of employee stress can actually be attributed to HR’s shift in focus from employee advocate to department of cost-cutting:
“During periods of slack labor markets, HR started prioritizing cost-cutting measures over employee advocacy, leading to increased work demands, reduced job security, pay cuts, and diminished benefits such as training and development opportunities. This shift created a more stressful work environment for employees, contributing to their stress levels.”
Wellness initiatives like meditation or yoga are great as part of a larger, more holistic program – but workplace stress is a vicious cycle. Bandaid initiatives that don’t address the core stressors can’t offer a viable way out.
Instead, focus on structural changes that alleviate feelings of job insecurity and workload imbalance so that you can support your employees before these issues become a problem.
Reducing employee stress: 5 strategies to fight the root causes
Despite research showing that for every $1 invested in employee mental health, businesses can benefit from a $4 return on investment (ROI), many companies stay focused on protecting the bottom line at the expense of topline growth.
But not everyone. Today, 94% of large employers say they’ve increased their mental health care coverage, or put new programs and systems in place to support their employees. Here are five ways to reduce employee stress by targeting its underlying causes.
1. Get back to advocating for employees
Some companies see HR as a profit driver, others see it as a cost-cutting function. But data doesn’t have a horse in this race and according to research, companies with highly engaged employees are 21% more profitable than their competitors.
History shows time and time again that investing in your culture when times get tough can put your business in a prime position when markets bounce back. While competitors are busy trying to get their employees’ heads back in the game, your people will feel supported to do their best work.
For example, Patagonia is famous for its mission-driven employee perks and benefits. The outdoor clothing brand is committed to supporting the whole employee, not just their productivity. That promise even includes paid activism time so that employees can become advocates for the environmental causes they care about.
Don’t get stuck spinning your wheels with the same old perks and benefits. There are plenty of ways to advocate for the things your employees really care about.
Action steps:
- Create opportunities for employees to advocate for important causes during work hours.
- Give employees the opportunity to have their voices heard through regular check-ins – remember to listen and act on their feedback and concerns.
- Recognize individual achievements to show employees that they are both seen and valued.
2. Enhance communication
That company newsletter isn’t just about the warm fuzzies. Great communication has been shown to boost employee retention to the tune of 4.5X. Even if you’re not in the middle of a restructuring, maintaining open communication about job security, work-life balance, the challenges of constant connectivity, and future opportunities for growth, can go a long way in reducing regrettable departures.
Focus on implementing transparent and open communication channels to keep employees informed about upcoming changes and challenges.
Action steps:
- Provide regular updates on organizational goals and company direction to reduce uncertainty and anxiety.
- Create an open-door policy where employees feel comfortable speaking up without fear of judgment.
- Keep communication from leadership open, honest, and frequent via executive blogs, newsletters, or even a company town hall meeting.
3. Invest in employee development
These days, promotions are rare, with only 4.5% of employees receiving one within the first two years of being hired. As wages struggle to keep up with inflation, employees struggle to maintain their livelihood.
So what can you do? First and foremost, pay your people more. If you’re not in a position to re-evaluate your compensation strategy, focus on what Cappelli and Nehmeh refer to as “rebuilding your internal labor market”.
For example, leading employer brands like AT&T are leaning into employee upskilling as part of their retention strategy. The company has put its money where its mouth is with programs like the $1B Future Ready program, which prepares employees for upcoming changes in technology.
Action steps:
- Create clear pathways for career progression, backed by defined goals and performance metrics.
- Get rid of any unnecessary training and feedback from supervisors and replace it with tailored training sessions relevant to employees’ roles and skills development goals.
- Launch mentorship programs that foster guidance and support, while encouraging internal mobility.
4. Offer real flexibility
“By embracing remote work and flexible hours, we’ve seen happier, more productive employees who feel truly empowered,” says Joel Gascoigne, Buffer co-founder and CEO.
But not all workplace flexibility perks are created equal. With 61% of on-site employees saying they prefer a hybrid work arrangement and 28% saying they prefer to be fully remote, what works for one employee won’t always work for another.
Companies like Buffer truly walk the talk when it comes to employee flexibility. Their approach includes Unlimited Time Off (UTO), flexible work hours that align with employees’ peak productivity hours, and transparent communication policies to ensure team members stay connected across time zones.
Action steps:
- Offer flexible work hours and remote work options, but skip cost-cutting practices like “hoteling,” where workers have to reserve a desk when they need it.
- Implement a results-focused work environment, where output matters more than hours spent at a desk.
- Many causes of stress are personal. Support your employees’ individual needs by allowing them to manage their start and end times.
5. Make inclusion a reality
Equitable treatment is critical to your success with stress management. Not only that, it’s great for your bottom line. Data shows that diverse companies earn 2.5x higher cash flow per employee.
Ice cream giant Ben & Jerry’s goes beyond just talking about diversity, equity, and inclusion (DEI): “We believe creating a more just and equitable society requires an acknowledgment of the truth as well as taking action.”
With its unapologetic commitment to social justice, internal training, and inclusive hiring, Ben & Jerry’s stands out in demonstrating how DEI can create a supportive and less stressful work environment.
Action steps:
- Be aware of the many different types of diversity and set clear hiring goals to ensure an inclusive and effective team.
- Create employee resource groups (ERGs) and employee assistance programs (EAPs) for employees to share experiences anonymously and access support as needed.
- Make sure growth opportunities are distributed on a clear and meritocratic basis to maintain the integrity of your performance management process and reduce favoritism.
For a stronger future, start by fighting work stress
Dealing with the real reasons behind employee stress is essential for creating a positive and productive workplace. While typical approaches focus on quick fixes, it's time to take a different approach.
By recognizing and addressing the core causes of stress, you can make your company a safe and supportive place for employees to thrive. It's not just about offering meditation or yoga sessions. It’s about making meaningful changes to support employees and prevent stress from becoming a bigger issue.
Ready to break the cycle? Build a better work environment with Breezy Perform. You’ll get access to easy goal management features, prebuilt feedback templates, and a manager review comment generator to give employees the feedback they crave and nip work-related stress in the bud.
