Stress Costs Formula

Company executives are good at weighing hard costs. They’re not as good at evaluating how soft costs affect the bottom line, which is the main reason the stress issue hasn’t come to the forefront until now. Based on research studies and information from the book, Stress Costs, Stress Cures by author Ravi Tangri, there is now a formula for measuring the hard costs of stress.

• 19% of absenteeism
• 40% of turnover
• 55% of employee assistance programs
• 30% of short and long-term disability
• 10% of drug plan costs
• 60% of total workplace accidents
• Total costs of workers comp and lawsuits because of stress

Good Business Sense

Although these hard-hitting numbers are undeniable, most companies haven’t yet developed strategies to combat stress in the workplace. This includes effective training in individual skills as well as addressing sources of stress in business practices and processes, organizational structures and company cultures. 

If leading companies follow best practices regarding management, sales, marketing, training and other key areas of business operations, it makes good business sense to incorporate best practices in reducing workplace stress too. It’s time to take action on the human resources and financial costs of workplace stress overload. At Inroads, we work with business executives and employees to help them learn how to manage their stress for optimum performance.