The link between stress and business performance

6 Minutes

A Path to Prevent Burnout

Excessive stress is widely recognised as a health hazard, but its impact on business performance must also be addressed. The detrimental effects of stress, such as decreased strategic thinking and creativity, along with the high costs of burnout in terms of absenteeism, turnover, and diminished productivity, make it a significant threat to your bottom line. Recent studies suggest that wellness programs often fall short of expectations in reducing healthcare spending and absenteeism.
Instead, organisations must adopt approaches prioritising employee well-being while improving business performance. Drawing from my experience as a leader and working with leaders, I offer two insights into effectively achieving both objectives.

1. Create a Work Environment That Reduces Stress

High-stress situations arising from unclear expectations, unreasonable deadlines, or a chaotic workspace trigger the fight-or-flight response in employees. This hampers long- term thinking, strategic planning, and innovation, eventually leading to burnout. Organisations should focus on creating a secure work environment and integrating stress reduction habits into daily workflows to counteract this effect.

• Increase psychological safety: Foster trust and collaboration by setting clear goals, encouraging open dialogue, and creating a work environment that embraces failure as a learning opportunity.
• Incorporate regular break times: Allow employees to mentally disengage from challenging tasks every couple of hours, promoting focus and sustained performance. Encourage short walks and establish a culture where breaks are valued.

• Support private workspaces: Open offices can be distracting and increase stress levels. Consider offering private workspaces or implementing “quiet hours” to provide employees with focused, uninterrupted work time.

• Establish boundaries around work hours: Blurring the line between work and personal time increases job stress. Communicate expectations regarding after- hours availability and limit non-urgent communication outside of designated work hours.

• Explore flexible work policies: Embrace a work environment that accommodates individual needs by allowing staggered hours and customised work arrangements to promote work-life balance.

2. Build Employee Engagement

Extensive research has shown that higher employee engagement yields numerous benefits, including reduced stress, improved health, job satisfaction, increased productivity, job retention, and enhanced profitability. To foster engagement, leaders should prioritise transparency, appropriate role alignment, autonomy, growth opportunities, and recognition, and instil a sense of purpose.

• Promote transparency: Ensure employees understand how their work contributes to short- and long-term company goals, fostering a sense of purpose and reducing ambiguity-related stress. Regularly communicate organisational objectives and progress, and clarify decision-making processes.

• Align employees with the right roles: Regularly check in with employees to understand their interests, goals, and passions and align their responsibilities accordingly. Assign meaningful projects that leverage their strengths and provide the necessary support for success.

• Foster autonomy: Empower employees by offering control over project management, task selection, and time allocation. Autonomy leads to reduced
burnout rates and increased satisfaction. Gradually transition employees to independent work after providing initial guidance and feedback.

• Demonstrate commitment to growth and progression: Support employee development through learning opportunities and career advancement. Encourage internal mobility to match employees’ evolving aspirations. Building trust by investing in their growth creates a stronger bond.

• Cultivate a culture of recognition: Publicly acknowledge and appreciate the efforts of team members, fostering a positive work environment and reducing stress. Encourage peer recognition to enhance a sense of belonging and support among employees.

• Instil a sense of purpose: Connect employees’ work to a larger purpose by illustrating the impact on the company, other departments, and society. Share stories that highlight the positive outcomes resulting from their contributions. Emphasise the meaningfulness of their work during the recruitment process, attracting candidates who align with the organisation’s purpose.

By implementing these steps, leaders can combat burnout, improve employee well- being, and enhance business performance. Shifting the focus from individual perks to organisation-level approaches is crucial in creating healthier work environments. It is not just about reducing worker stress; it is about cultivating a workforce of happier, more engaged, and productive employees. The benefits extend beyond the individual level and positively impact the business’s overall success.
Recognising the link between stress and business performance is a pivotal first step.

Organisations must commit to transforming the concept of “workplace wellness” and adopt holistic strategies that prioritise employee well-being and organisational outcomes. By creating a work environment that decreases stress and builds employee engagement, leaders can proactively prevent burnout, foster a positive and productive workplace culture, and achieve sustainable success.