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Is workplace stress cutting into your bottom line?

20 September 2011 - 6:39pm

Many companies simply don't investigate how much the wellbeing of their employees affects their annual profits.

You only have to look at the findings of private health insurance provider Medibank Private - which found that stress cost the Australian economy $14.81 billion in 2008 - to draw your own conclusions.

According to their report: "The productivity losses incurred through workplace stress reduce overall business productivity resulting in lower GDP, private consumption, investment, imports, exports and industry production."                

These effects are widespread and can be damaging to business on multiple levels.

Medibank Private states: "The burden of workplace stress on employers is significant and represents an area in which preventive measures may produce strong economic and productivity gains for the employer and the broader economy."

Preventative measures can include a range of initiatives, from awareness campaigns, to exercise programs and business health plans.

Company-provided health benefits are also a fantastic way to make your business more appealing to potential employees and could lead to an overall higher rate of staff retention.

They may also help improve the wellbeing of workers - a point worth noting as stress-related absenteeism resulted in a direct cost to employers of $3.4 billion.