VBI Article on Business Stress

by JMoorE_8900_nh2024 | Dec 18, 2024 | Business

Value Builders International

The Hidden Cost of Stress in the Workplace: How Formal Axiology Can Help Businesses Measure, Manage, and Reduce Stress

Stress is often considered an unavoidable part of modern business life, affecting employees, managers, and even business owners. While a small amount of stress can occasionally boost productivity, chronic stress can have profoundly negative effects on both individuals and the overall company performance. Business owners who ignore the damaging impact of stress risk higher employee turnover, decreased productivity, and even financial loss. In this article, we’ll explore the negative effects of stress in the workplace, provide statistics that highlight its toll, and explain how the science of formal axiology and the Hartman Value Profile (HVP) can be leveraged to measure, manage, and reduce stress.

The Impact of Stress on Businesses

1. Decreased Productivity and Performance: One of the most immediate impacts of stress in the workplace is a drop in productivity. Stressed employees are less able to focus, make decisions, and maintain a high level of performance. According to the American Institute of Stress, workplace stress costs businesses in the U.S. approximately $300 billion annually due to factors such as absenteeism, turnover, diminished productivity, and health costs. Employees who feel overwhelmed by stress are less likely to meet their goals, and the overall quality of their work can suffer.

2. Increased Employee Turnover: High levels of stress can also lead to increased turnover, which is expensive for companies in terms of both direct and indirect costs. A report from the Society for Human Resource Management (SHRM) shows that replacing a salaried employee can cost a business up to 9 months’ salary, depending on the role. Stressed employees are more likely to burn out, seek employment elsewhere, or require medical leave, leading to disruptions in workflow and an unstable work environment.

3. Health Costs and Absenteeism: Chronic stress is linked to various health issues, including heart disease, depression, anxiety, and sleep disorders. According to the Centers for Disease Control and Prevention (CDC), stress-related absenteeism costs U.S. employers an estimated $1,685 per employee per year. Employees under constant stress are more likely to take sick days, and their poor health can affect team dynamics, cause delays in projects, and increase health insurance premiums for the business.

4. Impact on Managers and Business Owners: Stress doesn’t just affect employees—it impacts managers and business owners as well. Stressed leaders may struggle to maintain perspective, make sound decisions, and lead effectively. This can create a ripple effect, where the stress of leadership trickles down to employees, further exacerbating workplace tensions and contributing to a toxic work environment.

The Science of Formal Axiology and the Hartman Value Profile (HVP) as Solutions

To tackle workplace stress, businesses need more than just surface-level solutions like wellness programs or time off. They need to understand the root causes of stress at an individual and systemic level. This is where the science of formal axiology and the Hartman Value Profile (HVP) can make a real difference.

1. Measuring Stress with the Hartman Value Profile: The HVP is a unique tool grounded in the science of formal axiology that can provide deep insights into an individual’s value structure. It measures a person’s ability to think clearly in three distinct dimensions: Intrinsic (people-oriented), Extrinsic (task-oriented), and Systemic (rule- or structure-oriented). When these dimensions are out of balance, stress levels rise.

For example:

An overly systemic person might become stressed in an unpredictable environment where rules are unclear or not followed.
An overly extrinsic individual may feel overwhelmed by too many tasks without a clear sense of their priority.
Someone with high intrinsic value may feel stressed when they are not able to establish meaningful relationships or feel disconnected from others.

By measuring how a person perceives and prioritizes these three dimensions, the HVP can help identify the underlying causes of stress in both employees and managers. Unlike surface-level assessments, this tool offers a deeper understanding of how different types of stress affect individuals based on their unique value structure.

2. Developing Custom Stress-Reduction Coaching Programs: Once stress triggers have been identified through the HVP, businesses can develop customized coaching programs to help employees and leaders reduce and manage stress effectively.

For instance:

Intrinsic-focused individuals may need support in balancing their relationships at work. Coaching can focus on improving communication skills, conflict resolution, and building better connections with colleagues.
Extrinsically focused employees might benefit from productivity coaching, helping them prioritize tasks, manage time effectively, and avoid overwhelm in busy periods.
Systemically strong employees can be coached to accept flexibility and ambiguity in certain situations, reducing the frustration that comes from rigidity or unpredictable processes.

By tailoring stress-reduction strategies to the specific value dimensions of each individual, businesses can create a more sustainable approach to managing stress. These personalized coaching sessions can significantly improve workplace morale, performance, and employee retention.

The Business Case for Reducing Stress:

Improved Employee Engagement: By managing stress levels effectively, businesses can see a rise in employee engagement. Engaged employees are more likely to be motivated, productive, and loyal to the company. According to Gallup, companies with highly engaged employees are 21% more profitable than those with low engagement levels.

Better Decision-Making: When stress levels are controlled, employees and managers alike are able to make clearer, more thoughtful decisions. High stress clouds judgment and impairs cognitive function, leading to hasty or poorly informed decisions that can harm the business. The HVP helps individuals understand how their value structure may impact their decision-making processes under stress, allowing for targeted interventions that enhance clarity and focus.

Increased Innovation: Stress can stifle creativity and innovation. When employees feel overwhelmed, they are less likely to take risks or think outside the box. By using the HVP to measure and manage stress, businesses can create an environment where employees feel safe to innovate, knowing they have the tools and support to manage their workload and mental health.

Conclusion:

Stress in the workplace is a serious issue that can have negative consequences for employees, managers, and the overall success of a business. However, with the right tools and strategies in place, stress can be measured, managed, and significantly reduced. The Hartman Value Profile offers a scientifically grounded method to understand the root causes of stress, allowing businesses to develop custom coaching programs tailored to individual needs. By investing in stress management, business owners can increase productivity, lower turnover, and create a thriving work environment where both people and profits flourish.

Reducing stress is not just about improving the work environment—it’s about ensuring the long-term success and sustainability of the business itself.