Stress and the way of handling it has strategic and fundamental importance for the organization. There are three main reasons for this:
Stress causes considerable direct and indirect costs. It’s been proven that damages and losses due to the psychological stress and illness occur way before the medical diagnose. The indirect costs appear first and may be caused by employees’ mistakes, unnecessary conflicts, low commitment, lack of trust, lack of creativity, no flexibility or unused opportunities. Those costs are followed by the direct costs which the company has to pay when the employees are eventually signed off sick by their doctor.
Stress prevents other prospective benefits and income in the current operational situation which would be possible if the level of stress of the employees was not high.
Stress can severely damage the working atmosphere and corporate culture and thus blocks the perspective of new solutions and innovations.
Reference: Stress-medizin. Beratung, Vorbeugung, Behandlung. C.Haurand, H. Ullrich, M. Weniger. Medizinische Wissenschaftliche Verlagsgesellschaft. Berlin 2015