{"id":2143,"date":"2022-11-23T08:00:33","date_gmt":"2022-11-23T08:00:33","guid":{"rendered":"https:\/\/learn.brightbreaks.com\/learn\/?p=2143"},"modified":"2024-03-27T09:55:22","modified_gmt":"2024-03-27T09:55:22","slug":"the-hidden-cost-of-employee-stress-and-how-to-reduce-it","status":"publish","type":"post","link":"https:\/\/learn.brightbreaks.com\/learn\/blog\/the-hidden-cost-of-employee-stress-and-how-to-reduce-it\/","title":{"rendered":"The Hidden Cost of Employee Stress\u2014and How to Reduce It"},"content":{"rendered":"\t\t
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Employee stress is costing us trillions of dollars.<\/p>

Widespread mental health challenges and low engagement result in a slew of negative consequences for individuals and the companies they work for: burnout, absenteeism, lower job performance, higher healthcare costs, higher turnover rates\u2026<\/p>

Most workers simply aren\u2019t doing well<\/a>: 59% feel stressed, and 44% feel stressed for a large portion of their day. And these numbers are only increasing\u2014daily feelings of stress, worry, anger, and sadness remain above pre-pandemic levels.<\/p>

<\/p>

So just how much is employee stress costing us? And how can we reduce stress so employees and businesses can thrive? Here\u2019s a quick look at the numbers and some proven stress-reducing solutions for employees.<\/p>

\u00a0<\/h2>

The Financial Toll of Employee Stress<\/h2>

We often toss around phrases like \u201cI\u2019m so stressed\u201d during a harried workday but the financial impact of employee stress is much greater than we realize: It\u2019s expensive for individuals, their families, their workplaces, and the economy at large.<\/p>

Just how expensive is it? Let\u2019s take a look.<\/p>

Mental Health Challenges Cost $1 Trillion Each Year<\/h3>

Employee mental health is at an all-time low<\/a>: 84% of workers reported at least one mental health challenge in the past year, and 37% cited work as \u201ca top factor affecting their mental health.\u201d<\/p>

The World Health Organization notes that elements of poor working environments, such as excessive workloads or low job control, often pose a risk to mental health<\/a>. And when mental health deteriorates, so does productivity.<\/p>

The price tag of poor mental health is a $1 trillion loss of global productivity each year<\/a> due to depression and anxiety.<\/p>

Low Engagement Costs $7.8 Trillion Each Year<\/h3>

Gallup estimates that employee engagement accounts for 11% of global GDP. That\u2019s a lot of money riding on employees being present and enthusiastic\u2014yet nearly 85% of employees worldwide are still not fully engaged<\/a> at work.<\/p>

So what happens when engagement dips? Absenteeism, accidents, quality defects, shrinkage, and turnover all rise, which leads to the heftiest hit to financial performance we found in our research: $7.8 trillion<\/a>.<\/p>

Turnover Costs $1 Trillion Each Year<\/h3>

It\u2019s expensive to lose an employee. In addition to the knowledge gap often left in their wake, there\u2019s the time and money spent on recruiting, interviewing, and training\u2014not to mention the work that may be left undone while a replacement is found.<\/p>

So just how much is turnover costing? A whopping $1 trillion in the US alone<\/a>.<\/p>

Here\u2019s a little rundown of the numbers by Gallup:<\/p>