How Emotional Intelligence Skill Development can Impact The Very Real Cost of Stress
In the latest StressPulse(SM) survey by Compsych workers not only continue to have sustained high stress levels, the stress is having a significant negative impact on both productivity and absenteeism (see data below). Dr. Richard A. Chaifetz, Chairman and CEO of ComPsych said “Many employees have reached a point of unprecedented burnout.”
Impact of Stress Upon Daily Productivity
- 45% lose 15 – 30 min. per day in productivity due to stress
- 34% lose 1 hour or more per day in productivity due to stress
- 21% productivity unaffected by stress
Impact of Stress Upon Attendance
- 52% miss 1 to 2 days per year due to stress
- 30% miss 3 to 6 days per year due to stress
- 18% miss more than 6 days per year due to stress
While these numbers are significant if you were to calculate the actual cost of stress on productivity and absenteeism in terms of wasted salary dollars you would find that the numbers are staggering — and they are a drain on the bottom line. Let me show you what I mean.
Here’s one way to calculate the cost in wasted salary dollars. Take the percentages found in the ComPsych survey for lost time of productivity due to stress and calculate the hours per year lost for three sizes of departments/organizations — 150 people, 300 people, and 4000 people. Then calculate the days per year lost for those three sizes of organizations. To determine the impact in salary dollars I calculated the cost for each of the three groups assuming average salaries of $50,000 per year, $70,000 per year, and $100,000 per year making the assumption that there are 230 workdays per year (after taking out weekends, holidays, and vacations).
Impact of Stress on Productivity
| Hours per Year Lost for a Group of… |
| Survey Findings 45% lose 15-30 minutes/day/person 34% lose 1-hour or more/day/person 21% productivity unaffected Total Hours/Year Lost Total Days/Year Lost |
150 people 7,763 11,730 — 19,493 2,437 |
300 people 15,526 23,460 — 38,986 4,874 |
4,000 people 201,000 312,800 — 513,800 64,225 |
| Cost (estimated) | |||
| If average salary per year is $50,000 If average salary per year is $70,000 If average salary per year is $100,000 |
$529,804 $740,848 $1,060,095 |
$1,059,608 $1,481,696 $2,120,190 |
$13,936,825 $19,524,400 $27,937,875 |
The estimated waste calculated in salary dollars is significant, even for an organization of 150 people with average salaries of $50,000 per year. Following are the numbers and dollars for attendance losses due to stress.
Impact of Stress on Absenteeism
| Hours per Year Lost for a Group of… |
| Survey Findings 52% miss 1-2 days/year/person 30% miss 3-6 days/year/person 18% miss 6+ days/year/person Total Days/Year Lost |
150 people 117 202 162 481 |
300 people 234 404 324 963 |
4,000 people 3,120 5,400 4,320 12,840 |
| Cost (estimated) | |||
| If average salary per year is $50,000 If average salary per year is $70,000 If average salary per year is $100,000 |
$104,569 $146,224 $209,235 |
$209,139 $292,448 $418,905 |
$2,786,280 $3,903,360 $5,585,400 |
Stress is the result of negative emotions and beliefs that occur when people are unable to cope with the demands of their environments, be it work or home. From my 16 years of teaching applied Emotional Intelligence skill-building programs I can tell you that for most people 70-80% of their stress occurs at work all throughout the day and it builds as the day goes along. Unfortunately not many of them are practical for use at work in-the-moment of stress (see my blog related to emotional intelligence and stress).
The average improvement identified by participants of our Emotional Intelligence training programs two to three months after the training is 35% reduction in stress. Applied to the group of 150 people with an average salary of $50,000 per year for productivity and absenteeism that would yield a savings of $220,030 per year [($529,804 + $104,569) x .35]. Also because stress is linked to health problems (hypertension, heart disease, autoimmune disorders, chronic pain, etc.) individuals and the organization benefit in these areas along with reduced healthcare costs.
Stress is a real drain on individuals, organizations and the bottom line. It is not just a good idea to reduce stress at work, it’s good business. There are effective training programs that consistently deliver immediate, significant and sustained reductions in stress.
