Case for Analysis: Stressed Out at Work?

Help Is on the Way

Nowadays, it seems more and more employees are increasingly stressed at work. As discussed
earlier in the chapter, high levels of intense stress can have serious consequences for individuals and
their organizations. There are many possible explanations for this increase in employee stress,
including a stubborn recession, intense global competition, persistently high unemployment and
demanding performance work cultures. Compounding the problem is that many employees are
struggling with personal and financial issues at home. When a spouse or partner loses a job or is
forced to accept fewer hours or less pay by his employer, the reduction in family income is stressful.
Many employees still have to pay their mortgages, subsidize living and healthcare expenses for
elderly parents, pay for their childrens education, have their automobiles repaired, and so forth.
Even though these personal issues occur outside of work, they still affect the employee as these
stressors can spill over into the employees work domain.

Another source of stress for employees is related to layoffs. During the most recent recession,
several companies and organizations have let go of tens of thousands of employees. Although layoffs
are exceptionally hard on the victims who are let go, there is also evidence that the survivors of
layoffs (i.e., those employees who stay with the organization and do not get laid off) experience high
levels of stress regarding all of the changes and fear over the future of their own jobs. Some layoff
survivors feel guilt over seeing the firing of their coworkers and friends. Also, these surviving
employees often have to absorb the work of their co-workers who are no longer with the
organization. And, many survivors wonder if (and when) theyll be next. Research suggests that
some of these survivors may ultimately experience lower levels of commitment to and trust in their
organizations, a drop in motivation and satisfaction levels, and possibly reduced work performance.
Also, some survivors of layoffs may quietly initiate job searches with other organizations. Research
suggests that after a layoff occurs, the percent of employees who voluntarily leave the organization
can increase by 31 percent. Also, employees who engage in job searches (while in their current jobs)
will be more distracted and less focused on their actual jobs. This lack of focus has serious
implications for the overall effectiveness of their organizations.

High-performance work cultures can also take a toll on employees stress levels and mental health.
Within a period of about six months, three engineers who worked for the Renault plant outside of
Paris, France, committed suicide. It was alleged that prior to their deaths, each of them complained
about the unreasonable workloads, high-pressure management tactics, exhaustion, and humiliating
criticism in front of colleagues during performance reviews. Performance reviews have been the
source of stress for employees at other companies, as well. General Electric has stopped calling its
lower performers bottom 10s (as in bottom 10 percent in performance rankings) and instead has
begun referring to them as less effectives. At Goldman Sachs Group, managers were fond of
setting unobtainable stretch goals in the past. Recently, these managers were counseled to set
both achievable and stretch goals with employees. This way, employees can feel a sense of
accomplishment while simultaneously being pushed to do more than they thought possible.

What are organizations doing to combat stress among their employees? Many encourage their
people to use employee assistance programs (EAPs) or wellness programs. Within the past year or
so, there has been an increase in employee requests for financial planning, debt counseling, and
legal assistance. Also, many employees are taking advantage of phone and inperson counseling
services; a common request is for family and relationship counseling. In addition, experts
recommend that organizations modify their cultures so as to decrease the prevalence and harmful
effects of stress. For example, managers should encourage employees to share their concerns with
teammates or trusted co-workers, ask for help and not keep problems inside, minimize blame when
good ideas dont pan out, and create a listening environment where minor issues are identified
before they morph into major issues.

To help decrease employees stress levels, some firms are offering their current employees
additional perquisites and benefits as a way to keep them from jumping ship. For example, USAA,
the financial services company based in San Antonio, Texas, helps relieve employees stress by
offering concierge service (i.e., someone who runs chores for employees while theyre at work).
Similarly, General Mills provides its employees with personalized services at its headquarters
location to relieve employees of having to do a lot of chores on the weekend. The company hopes
that instead, employees will rest and spend time with family. Discovery Communications of Silver
Spring, Maryland, recently opened a subsidized childcare center for employees children. Yum!
Brands (which owns KFC and Taco Bell) will follow suit and open a new childcare center at its
corporate office in Irvine, California. Intel is offering its employees children educational scholarships
in the amount of $4,000. The company hopes this and other generous benefits will help keep good
employees through these stressful times.

Are these prerequisites and extra benefits enough to significantly lower employees stress levels
during these challenging economic times? Probably not, but they might just signal to surviving
employees that their organizations care about them; and this in itself is a positive result that may
help boost employee retention and morale.

DISCUSSION QUESTIONS

1. What are the primary reasons why many employees are experiencing high levels of stress at work
nowadays? Identify and describe these reasons.

2. Why do many of the survivors of layoffs experience stress? Conventional wisdom would suggest
that these employees should be happy that they didnt get laid off. Explain your answer.

3. What are companies doing to decrease the stress levels of their employees? To what degree do
you think that these steps will help them retain valued employees?