Employees are experiencing higher stress levels due to the economic downturn, which is leading to behavioral issues in the workplace. Workloads have increased while resources have decreased, as employers have instituted cost-cutting measures like layoffs, pay cuts, and reduced vacation time. This stress is manifesting in rising rates of absenteeism, injuries, and lawsuits related to stress. Violence and aggressive behaviors in the workplace have also increased as employees feel more pressure and insecurity about their jobs and finances. Employers need to focus on open communication, continuing development opportunities for employees, and promoting programs to help employees manage their stress.

1. Employees Behaving Badly:Symptoms of a Stressed Economy

2. About Pivotal Experience: 25+ years/ Private/ Canadian Market Position: broadest range of HR solutions Outsourced HR management HR Help Desk HR Projects Outsourced Payroll Recruiting

3. Workplace Stress Bad Economy Layoffs Greater workloads, increased productivity Longer hours Smaller/Cramped workspaces Office Clutter Shorter response time requirements Shifting responsibilities Reduction of vacation Diverse workforce with different process methods

4. Current Economic Situation

5. Employer’s Responses Temporary Layoffs Terminations Reduction of pay Work-share

6. The stages of stress

7. 2004 Study Results Employees who feel overworked make more mistakes Higher benefit usage/costs Managers must distinguish positive stress signals Some stress is good and necessary

8. Response to Symptoms Drug & Disability claims are increasing 1 in 4 employees agreed workplace stress is overwhelming, became physically ill Health & Safety H&S budget cuts result in more casualties People don’t report injury for fear of job loss Legal 90% increase in employees suing for stress-related issues Employer has a duty to accommodate

9. Aggressive Workplace Behaviours 1 in 5 admitted to being more ruthless 1 in 3 said they would be self-promoting in order to ensure they prove their value Nearly half would stay in a job for fear of low seniority at a new organization 1 in 10 would take a pay cut to keep their current job

10. Increased Workplace Violence Prepardis Inc. forecasts incidents could rise Continued layoffs combined with pressure of providing for families Workers are on edge fearing loss of job, finances, home, etc. Recent examples Bill 168

11. Increased Workplace Violence Nearly 1/5 of incidents involve violent victimization Men and women equally likely to report violence 27% of incidents involving male victims resulted in injuries, 17% involving women Violence more common in certain employment sectors

12. Personal finance is the number one source of stress; five times higher than the next highest, health.

13. Increase in Mental Health Issues 91% of people w/ personal debt report deterioration in mental health due to stress and depression Long-term health effects physical health problems-psychosomatic disorders, heart conditions and cancer Mental health symptoms

14. Recession Fatigue: a form of chronic psychological stress caused or heightened by an individual’s economic circumstances, and severe prolonged enough to degrade their personal effectiveness in work or non-work situations

15. Reactions to recession fatigue Sense of frustration, uncertainty, disappointment, ineffectiveness Fatigue, confusion, malaise Personal isolation from family/friends at work and home Dilemma between the temptation to quit or give into despair

16. Practical features of Recession Fatigue Heavy drain on resources, personnel and business High input / low output Fragmentation of human and physical resources Declining personal efficiency Decline in innovation, new projects and initiatives Increase idle resources Increasing misemployment

17. What does this mean for employers? Employees will take time off to deal with financial problems Take extended work breaks sometimes trying to deal with financial stress Spend excessive time at work dealing with personal financial problems Decreased job productivity

18. Other Concerns… Relationship between societal economic downturns and an increase in disability rates CIPD in UK survey of 1300 HR practitioners in 2003: Found casual absence increased 10% LTD increased

19. Decline in Employee Engagement Visible decline in engagement Engaged employees will help companies pull through the recession Companies are cutting back on engagement investment Decreasing levels of loyalty and trust

20. Leading Financial Issues Addressed by EAP, 2008

21. What can YOU do? Prepare for the inevitable recovery Be resilient and manage performance and growth Your best capital is the employees and their creativity

22. Strategies Open communication; good or bad Know where you DON’T want to cut costs Focus on what will never change Cut non-essential services; ask for input Get employees to assist in cost cutting Always treat employees with respect, especially if cutting headcount

23. Strategies Continue to focus on careers, growth and development Promote EAP programs Try to prevent serious financial stress Improve employee engagement Help employees stay healthy and resilient

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