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Workplace Stress:

It's enough to make

your employees sick

Workplace Stress

Rising Health Care Costs

Health Effects from Workplace Stress

Cost of Diabetes

Cost of Obesity

Cost of Alcoholism

 

Productivity is up and so are the number of "bummed out, frazzled and overwhelmed" employees.  Combined with the rising cost of health care and health insurance, an aging workforce, and global competitiveness, the U.S. business community is under attack.

While economists, politicians, academics and the media debate the intensity of the The Perfect Labor Storm, employers and their profits are being blown away by this skilled worker crisis.  What is not debated even iota is the skyrocketing cost of health care. 


One of the most insidious and overlooked causes of these increases are health conditions caused or worsened by workplace stress.  What follows are the hard, cold facts of the devastating effects of stress on workers and the unique unrecoverable costs begin absorbed by employers.  Just like the saturated ground after days of torrential rains, bottom lines have absorbed all they can take. 

To survive The Perfect Labor Storm, employers must first understand that prolonged workplace stress cannot be accepted as "just a fact of life of doing business".   Employers have a choice - accept workplace stress as normal and allow the following ravages of stress to overwhelm their workforce or do something about it. .

Success Performance Solutions offers a solution to workplace stress.  Job matching is a proven solution for placing the right people in the right job on the right teams in the right businesses.  Job matching also reduces workplace stress by offering the recognition and rewards that employees value, a motivating culture, and energizing jobs.  

Read more about Solutions for Workplace Stress here or contact us to qualify for a FREE 30-minute consultation.



Workplace Stress

62 percent of American workers say their workload has increased over the last six months. (Source: Kronos, Inc.)

53 percent of American workers say work leaves them “overtired and overwhelmed”.

(Source: Kronos, Inc.)

 

30 percent of workers say they are “always” or “often” under stress at work.

(Source: National Opinion Research Center )

 

54 percent of workers often come home in a sense of fatigue.

(Source: LLuminari® Landmark Study)

 

2 out of 5 workers experience distress due to too much pressure or mental fatigue at work. (Source: LLuminari® Landmark Study)

 

1 out of 5 workers are at risk for stress related health problems.

(Source: LLuminari® Landmark Study)

 

1 in 10 are so tired at the end of the work day that they do not enjoy their non-work time. (Source: LLuminari® Landmark Study)

 

62 percent of workers don't think their employer tries to minimize unnecessary stress.

(Source: LLuminari® Landmark Study)

 

Half of employees don't think their employer has an interest in their well-being.

(Source: LLuminari® Landmark Study)

 

1 in 5 stated that their work regularly interfered with their responsibilities at home and kept them from spending time with their family.

(Source: LLuminari® Landmark Study)

 

Workplace stress costs the nation more than $300 billion each year in health care, missed work and stress reduction efforts.

(Source: American Institute of Stress)

 

Workers who report they are stressed incur health care costs that are 46 percent higher, or $600 more per person, than other employees.

(Source: NIOSH)

 

The risk of a heart attack doubled among permanent after a major round of downsizing, with the risk growing to five times normal after four years.

(British Medical Journal, 2/2004)

 

In workplaces that underwent large-scale expansions, workers were 7 percent more likely to take sick leave of 90 days or more and 9 percent more likely to enter a hospital for some reason.

(Source: National Institute for Psychosocial Medicine)

 

Workers in organizations that were in transition had higher than average levels of cholesterol, blood pressure, and other biochemical markers of heart disease risk.

(Source: National Institute for Psychosocial Medicine)

 


Rising Health Care Costs

In 2003, employer costs for employee health insurance benefits reported by the Bureau of Labor Statistics (BLS) averaged $1.71 per employee hour, an 11.2 increase over the $1.54 per hour average in 2002.

(Source: Employment Policy Foundation, Employment Trends)

Only 45 percent (Source: BLS) of private-sector employees are covered by or participate in employer-sponsored programs, employers who provide health insurance benefits experienced on average cost of $3,80 per hour for participating employees in 2003.  That cost has more than doubled in four years.

(Source: Employment Policy Foundation, Employment Trends)

 


What are the health effects resulting from stressful work conditions?

  • 2x the rate of heart and cardiovascular problems

  • 2x to 3x the rate of anxiety, depression and demoralization

  • 2x the rate of substance abuse

  • 2x to 3x the rate of infectious diseases

  • 5x the rate of certain cancers

  • 3x the rate of back pain

  • 2x to 3x the rate of conflicts

  • 2x to 3x the rated of injuries

  • Chronic distress at work contributes to abdominal obesity

(Source: Lluminari® Landmark Study)


 

Cost of Diabetes

The total annual economic cost of diabetes in 2002 was estimated to be $132 billion, or one out of every 10 health care dollars spent in the United States.


Direct medical expenditures totaled $92 billion and comprised $23.2 billion for diabetes care, $24.6 billion for chronic diabetes-related complications, and $44.1 billion for excess prevalence of general medical conditions. Indirect costs resulting from lost workdays, restricted activity days, mortality, and permanent disability due to diabetes totaled $40.8 billion.


The per capita annual costs of health care for people with diabetes rose from $10,071 in 1997 to $13,243 in 2002, an increase of more than 30%. In contrast, health care costs for people without diabetes amounted to $2,560 in 2002.

Direct Costs of Diabetes

  • Estimated at $92 billion in 2002, compared to $44 billion in 1997.

  • Represents 19% of total personal health care expenditures in the U.S. However, diagnosed diabetes patients account for only 4.2% of the total U.S. population.

  • $40.3 billion was spent for inpatient hospital care and $13.8 billion for nursing home care for people with diabetes.

  • Diabetes-related hospitalizations totaled 16.9 million days in 2002. Rates of outpatient care were highest for physician office visits, which included 62.6 million visits to treat persons with diabetes.

  • Cardiovascular disease is the most costly complication of diabetes, accounting for more than $17.6 billion of the $91.8 billion annual direct medical costs for diabetes in 2002.

Indirect Costs of Diabetes

  • Estimated to be $40 billion in 2002.

  • In 2002, diabetes accounted for a loss of nearly 88 million disability days.

  • 176,000 cases of permanent disability were caused by diabetes, at a cost of $7.5 billion.

 


Cost of Obesity

Taxpayers foot the doctor's bill for more than half of obesity-related medical costs, which reached a total of $75 billion in 2003, according to a new study.


The public pays about $39 billion a year -- or about $175 per person -- for obesity through Medicare and Medicaid programs, which cover sicknesses caused by obesity including type 2 diabetes, cardiovascular disease, several types of cancer and gallbladder disease.

What is the cost of overweight and obesity?

Total cost: $117 billion , Direct cost: $61 billion,* Indirect cost: $56 billion (comparable to the economic costs of cigarette smoking)

 

What is the cost of heart disease related to overweight and obesity?

Direct cost: $8.8 billion (17 percent of the total direct cost of heart disease, independent of stroke)

What is the cost of type 2 diabetes related to overweight and obesity?

Total cost: $98 billion (in 2001)

What is the cost of osteoarthritis related to overweight and obesity?

Total cost: $21.2 billion, Direct cost: $5.3 billion, Indirect cost: $15.9 billion

What is the cost of hypertension (high blood pressure) related to overweight and obesity?

Direct cost: $4.1 billion (17 percent of the total cost of hypertension)

 

What is the cost of gallbladder disease related to overweight and obesity?

Total cost: $3.4 billion, Direct cost: $3.2 billion, Indirect cost: $187 million

 

What is the cost of cancer related to overweight and obesity?

Breast cancer: Total cost: $2.9 billion, Direct cost: $1.1 billion, Indirect cost: $1.8 billion

Endometrial cancer: Total cost: $933 million, Direct cost: $310 million, Indirect cost: $623 million

Colon cancer: Total cost: $3.5 billion, Direct cost: $1.3 billion, Indirect cost: $2.2 billion

 

What is the cost of lost productivity related to obesity?

The cost of lost productivity related to obesity (BMI > 30) among Americans ages 17–64 is $3.9 billion. This value considers the following annual numbers (for 1994):

  • Workdays lost related to obesity: 39.3 million
  • Physician office visits related to obesity: 62.7 million
  • Restricted activity days related to obesity: 239.0 million
  • Bed-days related to obesity: 89.5 million

Cost of Alcoholism

Alcoholism causes 500 million lost work days annually. Absenteeism among alcoholics or problem drinkers is 3.8 to 8.3 times greater than normal (Bernstein & Mahoney, op. cit.) and up to 16 times greater among all employees with alcohol and other drug-related problems.
(US Department of Labor)

Family members of alcoholics and substance users use ten times as much sick leave and have higher than average health care claims than family members of non alcoholic and substance using families.
(HSS and NCADD Fact Sheet)

Up to 40 percent of industrial fatalities can be linked to alcohol use. Forty-seven percent of all industrial injuries are attributed to alcohol use.
(NCADD Fact Sheet)

60% of alcohol-related work performance problems can be attributed to employees who are not alcohol dependent, but who occasionally drink too much on a work night or drink during a weekday lunch
(JSI Research & Training Institute)

Drug-using employees take three times as many sick benefits as other workers. They are five times more likely to file a worker's compensation claim
(Strategic Planning for Workplace Drug Abuse Programs, NIDA)

Alcoholism causes 500 million lost work days annually. Absenteeism among alcoholics or problem drinkers is 3.8 to 8.3 times greater than normal (Bernstein & Mahoney, op. cit.) and up to 16 times greater among all employees with alcohol and other drug-related problems.
(US Department of Labor)

Family members of alcoholics and substance users use ten times as much sick leave and have higher than average health care claims than family members of non alcoholic and substance using families.
(HSS and NCADD Fact Sheet)

Up to 40 percent of industrial fatalities can be linked to alcohol use. Forty-seven percent of all industrial injuries are attributed to alcohol use.
(NCADD Fact Sheet)

60% of alcohol-related work performance problems can be attributed to employees who are not alcohol dependent, but who occasionally drink too much on a work night or drink during a weekday lunch
(JSI Research & Training Institute)

Drug-using employees take three times as many sick benefits as other workers. They are five times more likely to file a worker's compensation claim.
(Strategic Planning for Workplace Drug Abuse Program)