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Costing Violence and Stress at work

Costing Violence and Stress at work. VITTORIO DI MARTINO Bilbao, 25 November 2002. The dimension of violence. The most important security threat to America’s largest corporations (Pinkerton 2000)

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Costing Violence and Stress at work

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  1. Costing Violence and Stress at work VITTORIO DI MARTINO Bilbao, 25 November 2002

  2. The dimension of violence • The most important security threat to America’s largest corporations (Pinkerton 2000) • In the EU, 9 million workers suffer physical violence, 3 million are subject to sexual harassment, 13 million to intimidation and bullying (European Foundation 2000) • In Japan suicide is number two cause of death for bureaucrats, second only to cancer and before heart disease ( Reuters 2001)

  3. The dimention of stress • 26 to 29% Americans , depending on surveys, are affected by stress ( NIOSH, 2001) • 41 million European workers ( 28% ) suffer health problems because of stress.Work-related stress is the second most common work-related health problem, after back pain. ( European Foundation, Dublin, 1996) • In the UK 30% increase from 1990 to 2000 (HSE 2000) • Uganda : «Between 10% and 30% of Ugandan workers are likely to develop mental illnesses due to stressful workingenvironments » Beatrice Wabudeya, State minister for primary health care.( Radio Uganda 30.5.2002)

  4. Inter-action stress/violence violence stress

  5. For the worker • higher risk of accident • physical or psychological illness • deteriorating health • pain, distress, disability and death • stigmatisation and discrimination

  6. For the community • social security costs • compensation claims • disruption in family life • disruption in social life • increased violence

  7. For the organisation DIRECT COSTS • accidents • illness • disability • death • absenteeism • turnover

  8. Violence and absenteeism in the European Union

  9. For the organisation INDIRECT COSTS • reduced morale • reduced commitment • reduced efficiency • reduced performance • reduced productivity

  10. For the organisation INTANGIBLE ASSETS • company image • creativity • working climate • openness to innovation • knowledge-building • continuous learning

  11. The cost of violence and stresss - In the US the cost of stress has been calculated at $350 billion per year (Reed Group, 2001) - Absenteeism for workers exposed to violence is more than 30-40% higher than the average in EU (European Foundation Dublin, 2000) - In the European Union the cost of stress has been calculated at 20 billion Euro each year (European Commission, 1999) - Altogether it has been estimated by a number of reliable studies that stress and violence possibly account for approximately 30% of the overall costs of ill-health and accidents. Based on the above figures, it has been suggested that stress/violence may account for approximately 0.5 to 3.5% of GDP per year.( Hoel, Sparks and Cooper, 2000)

  12. The dynamics Increasing demands for training and recruitment Increased turnover Increased absenteeism Loss of skills Loss of knowledge Declining morale Insurance costs Increased health problemsin the community with reduced labour pool and diminished access to suppliers Retirement funds Safety and health Medical assistance Counselling Diminishing markets for finished products Declining productivity Declining services or profits Increased costs

  13. Regulatory Approach PROMOTING AND ENFORCING REGULATION

  14. Cost/ benefit ApproachREDUCING COSTS AND ENHANCING PRODUCTIVITY Advantages ° better workplace ° less absenteeism ° less turnover ° higher performance ° higher competitiveness Difficulties ° not fully shown ° a variable only ° economics can work the other way around

  15. The developmental approachBUILDING HEALTH, SAFETY AND WELLBEING INTO THE DEVELOPMENT OF THE ASMART@ ORGANISATION ° focus on knowledge ° focus on learning ° focus on quality ° people centred ° functional

  16. From costing to developing

  17. Marketing Production Finance HRD PR violence and stress management

  18. $$$ organisational before after individual

  19. THE HIGH ROAD • Linking mobbing to other health and safety issues • Linking these issues to managerial and economic goals, making the fight against mobbing an integral part of enterprise culture and growth • Activating initiatives and self-sustained action at the workplace • Supporting and stimulating this process and the creation of a virtuous circle by proliferation of best practices

  20. v.dimartino@worldonline.fr

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