APA Center for Organizational Excellence: Good Company Newsletter: By the Numbers: A Psychologically Healthy Workplace Fact Sheet

September 8, 2010

By the Numbers: A Psychologically Healthy Workplace Fact Sheet

Whether making the business case to key stakeholders, putting together a presentation or looking for high-impact statistics to include in your organization’s communications, reliable information about healthy workplace issues and practices is hard to come by. We’ve updated our fact sheet with some of the data you need in your back pocket.

Click here to download this fact sheet as a pdf document.

Workplace Stress

Sixty-nine percent of employees report that work is a significant source of stress and 41% say they typically feel tense or stressed out during the workday (American Psychological Association, 2009).

Fifty-one percent of employees said they were less productive at work as a result of stress (American Psychological Association, 2009).

Fifty-two percent of employees report that they have considered or made a decision about their career such as looking for a new job, declining a promotion or leaving a job based on workplace stress (American Psychological Association, 2007).

In 2001, the median number of days away from work as a result of anxiety, stress, and related disorders was 25 – substantially greater than the median of 6 for all nonfatal injury and illness cases (Bureau of Labor Statistics, 2001).

In a study of a large, multi-employer, multi-site employee population, healthcare expenditures for employees with high levels of stress were 46% higher than those for employees who did not have high levels of stress (Goetzel et al., 1998).

Job stress is estimated to cost U.S. industry more than $300 billion a year in absenteeism, turnover, diminished productivity and medical, legal and insurance costs (Rosch, 2001).

Work Demands

One third of U.S. employees are chronically overworked. Furthermore, twenty percent of employees reporting high overwork levels say they make a lot of mistakes at work versus none of those who experience low overwork levels (Galinsky et al., 2005, p. 2).

Twenty-four percent of employees work six or more hours per week without pay, and 47% of management does the same (Randstad, 2007, p. 8).

Eighteen percent of U.S. workers put in more than 48 hours a week (International Labour Organization, 2007).

Between 1977 and 2002, the combined weekly work hours of dual-earner couples with children increased by an average of 10 hours per week, from 81 to 91 hours (Bond, Thompson, Galinsky, & Prottas, 2002, p. 2).

Forty percent of employees said their workload increased in the past 12 months (Metlife, 2010).

Thirty-nine percent of employees experiencing high overwork levels say they feel very angry toward their employers versus only 1% who experience low overwork levels (Galinsky et al., 2005, p. 2).

Eighty-three percent of employees report going to work even while sick, citing heavy workload, need to conserve time off to meet family needs, and a work environment where taking time off is “risky” as their rationale (ComPsych Corporation, 2007).

Eighty-three percent of e-mail users admit to checking their mail once a day while actually on vacation (AOL, 2007).

Work-Life Balance & Flexibility

Fifty-two percent of employees say that job demands interfere with family or home responsibilities, while 43% say that home and family responsibilities interfere with job performance (American Psychological Association, 2007).

More than half of adults report that family responsibilities are a significant source of stress and 55% of employees say that job demands have interfered with responsibilities at home in the past three months. (American Psychological Association, 2009).

“Sandwiched” employees, defined as those who are responsible for child care and the care of parents, are at a greater risk for depression (Neal & Hammer, 2007, p. 208).

Thirty percent of employees polled said family and relationship issues were the most likely cause for taking a “mental health day,” defined as “taking a day off to recover and recharge” (ComPsych Corporation, 2008).

Employees with eldercare responsibilities are estimated to cost employers an additional 8% in health care costs, with even higher costs for blue-collar caregivers (almost 11%) and male caregivers (more than 18%). This differential is estimated to cost U.S. employers an extra $13.5 billion a year. (MetLife & National Alliance for Caregiving, 2010, p. 5).

Nearly one-third of working mothers would take a pay cut to spend more time with their children, and 25% have missed two or more significant events in their child’s life in the last year (CareerBuilder Inc., 2009d).

Thirty-one percent of working fathers say they would leave their jobs if their spouse/partner could financially support the family and another 30% would take a cut in pay to spend more time with their children (CareerBuilder Inc., 2009a).

A meta-analysis found a consistent negative relationship between work-family conflict and both job and life satisfaction (Kossek & Ozeki, 1998).

Work-family conflict is related to general psychological distress and self-reported poor physical health (Frone, Russell, & Barnes, 1996).

In a national study, work-family conflict was found to be related to mood, anxiety and substance abuse disorders (Frone, 2000).

Conflict between work and family roles was found to lower the perceived quality of both work and family life which, in turn, influences organizational outcomes such as productivity, absenteeism and turnover (Higgins, Duxbury, & Irving, 1992).

Research suggests that work-to-family conflict is related to employee turnover and intention to quit (Grandey & Cropanzano, 1999; Greenhaus, Parasuraman, & Collins, 2001; Kirchmeyer & Cohen, 1999).

In a study of employer-supported child care, work-family conflict was found to predict employee absenteeism (Goff, Mount, & Jamison, 1990).

Research has demonstrated a negative relationship between work-to-family conflict and organizational commitment (Casper, Martin, Buffardi, & Erdwins, 2002).

The existence of programs that facilitate work-life balance is related to organizational commitment and job satisfaction (Scandura & Lankau, 1997).

Ninety-one percent of employees surveyed agreed that employees are more likely to behave ethically at work when work-life balance is good and 60% believe that job dissatisfaction leads to unethical decision-making at work (Deloitte, 2007).

Employee Health & Healthcare Costs

Seventy percent of all deaths in the U.S. are attributable to chronic diseases (Center for Disease Control and Prevention, 2003).

Two‐thirds (sixty-six percent) of adults living in the U.S. have been told by a health care provider that they have one or more chronic conditions (American Psychological Association, 2009, p. 9).

The costs of chronic diseases make up more than 75% of the $2 trillion health care costs in the U.S. (Centers for Disease Control and Prevention, 2003).

More than six in ten American adults (63.1%) were either overweight (36.6%) or obese (26.5%) in 2009 (Gallup Organization, 2010).

Forty-four percent of workers have gained weight in their current job and nearly one-third (32%) say that work related stress contributed to their weight gain (CareerBuilder Inc., 2010b).

In a study of six large, private- and public-sector employers, modifiable risk factors were associated with approximately 25% of total group-level health expenditures (Anderson et al., 2000, p. 49).

Productivity losses related to personal and family health problems cost U.S. employers $1,685 per employee a year, or $225.8 billion annually (Stewart, Ricci, Chee, & Morganstein, 2003).

In 2008, workplace injuries resulted in 5,214 fatalities in the United States (Bureau of Labor Statistics, 2010).

In 2008, 4.6 million cases of nonfatal work-related injuries or illnesses were reported in the United States. Almost half of these cases required a job transfer, work restrictions or time away from work (Bureau of Labor Statistics, 2010).

The total cost of occupational deaths and injuries was $183 billion in 2008 (National Safety Council, 2010).

In 2007, workers’ compensation costs for employers totaled $85 billion (Sengupta, Reno, & Burton, 2009).

In a National Business Group on Health/Watson Wyatt Survey (2009), employers cited “employee’s poor health habits” and “underuse of preventative services” as the top two challenges to maintaining affordable benefit coverage.

Fifty-two percent of employees say their company does not do enough to promote employee health (Randstad, 2006, p. 36).

Only 2% of employers offer comprehensive smoking cessation benefits as recommended by the U.S. Centers for Disease Control and Prevention (National Business Group on Health & StrategyOne, 2007, p. 3).

In a survey of American employees, only 42% reported that their company offers healthy food options (Nationwide Better Health, 2007, p. 1).

Forty-six million people lacked health insurance in 2008 and the percentage of individuals covered by employer-based insurance decreased to 58.5% (DeNavas-Walt, Proctor, & Smith, 2009, p. 20).

Between 2008 and 2009, premiums for employer-based health insurance increased an average of 5% for families, bringing the total premium for individual coverage to $4,824 and family coverage to $13, 375 (Kaiser Family Foundation & Health Research and Educational Trust, 2009, p. 1).

Mental Health Issues

Mental health problems led to 156 million visits to doctors’ offices, clinics and hospital outpatient departments in 2005, making it one of the top three reasons why Americans seek medical treatment (Agency for Healthcare Research and Quality, 2008).

Mood disorders are estimated to cost more than $50 billion per year in lost productivity and result in 321.2 million lost workdays (Kessler et al., 2006).

Clinical improvement of depression is associated with fewer sick days (Simon, et al., 2000).

In 1990, mental health disorders cost the U.S. economy almost $79 billion in lost productivity (Rice & Miller, 1996, as cited in U.S. Department of Health and Human Services, 1999).

An estimated 19.2 million U.S. workers (15.3%) reported using or being impaired by alcohol or hung over at work at least once in the past year – 19% reported doing so monthly and 11% weekly (Frone, 2006, p. 151).

Employees who abuse drugs cost their employers approximately twice as much in medical and workers compensation claims as those who are drug-free (National Institute of Drug Abuse, 2008).

The Congressional Budget Office projects that the Wellstone-Domenici Mental Health Parity Act will raise overall national health plan premiums by an average of only 0.4% (Congressional Budget Office, 2007).

Employee and Organizational Outcomes

For the average company, turnover costs more than 12% of pre-tax income and for those at the high end, those costs can reach almost 40% of earnings (Saratoga, 2006).

Lost productivity due to presenteeism is almost 7.5 times greater than that lost to absenteeism (Employers Health Coalition, 2000, p. 3).

The top five reasons employees stay with a particular company are: exciting and challenging work; opportunities for career growth, learning and development; high-quality co-workers; fair pay; and supportive management (Kaye & Jordan-Evans, 2008, p. 10).

APA’s 2010 Psychologically Healthy Workplace Award (PHWA) winners report an average turnover rate of 9% compared to 41% nationally, only 30% of their employees report chronic work stress compared to 41% nationally and PHWA winners report a 73% employee satisfaction rate compared to 65% nationally (American Psychological Association, 2010 [graph]).

In a study of 24 publically traded companies, those with high morale outperformed similar companies in their same industries by almost 2.5 to 1, while the stock prices of companies with medium or low morale lagged behind their industry peers by more than 1.5 to 1 (Sirota, 2006).

Companies that invest more than average in employee training outperform the market by 45% and have returns that are 86% higher than those companies that spend less than average (Bassi, Ludwig, McMurrer, & Van Buren, 2000).

Companies with higher growth in profitability have engagement levels that are more than 20% higher than those of their counterparts and provide more growth and development opportunities (Hewitt Associates LLC, 2004, p. 1).

In a study of 50 global companies, those with highly engaged employees increased operating income 19% and earnings per share almost 28% over one year, while companies with low employee engagement levels showed declines of 32% in operating income and 11% in earnings per share (Towers Perrin, 2008, p. 5).

Eighty-five percent of employees who participated in a wellness program in the past three years agreed that the programs are effective in promoting good health (Guardian Life Insurance Company of America, 2008, p. 7).

In a 2009/2010 report, companies with the most effective health and productivity programs achieved 11% more revenue per employee, delivered 28% higher shareholder returns and had lower medical trends and fewer absences per employee (TowersWatson, 2010, p. 2).

A meta-evaluation of 56 peer reviewed journal articles on worksite health promotion programs shows an average 26.8% reduction in sick leave absenteeism, an average 26.1% reduction in health costs, an average 32% reduction in workers’ compensation and disability management claims costs and an average $5.81 savings for every dollar invested (Chapman, 2005).

The Recession

Nearly seven in ten (68 percent) employed Americans report that their employers have taken steps such as putting a freeze on hiring or wages, laying off staff, reducing work hours, benefits or pay, requiring unpaid days off or increasing work hours in the past year as a result of the weak economy. (American Psychological Association Practice Organization, 2009).

More than half (55%) of adults in the labor force during the recession have suffered a spell of unemployment, a cut in pay, a reduction in hours or have become involuntary part-time workers (Pew Research Center, 2010, p. i).

The economic downturn prompted 22% of employers to implement last-minute changes to a component of their 2009 health care benefit program(s) with reductions to health care subsidy contributions, benefit plan design and incentive programs (Hewitt Associates LLC, 2008, p. 2).

More than half (54%) of employees report that they are likely to look for new jobs once the economy turns around (Adecco, 2009, p. 3).

Almost a third (32%) of adults now say they are not confident that they will have enough income and assets to finance their retirement, up from 25% who said that in February 2009 (Pew Research Center, 2010, p. ii).

Nearly half (48%) of employed Americans who plan to look for a new job when the economy is more stable cite a loss of trust in their employer as a result of how business and operational decisions were handled over the last two years as a reason for leaving (Deloitte, 2010, p. 3).

Forty-seven percent of employers think that employee trust has declined as a result of the way their company has managed its cost reductions (Hewitt Associates LLC, 2009, p. 2).

Nearly a quarter (23%) of employers rate their organization’s employee morale as low (CareerBuilder Inc., 2009c).

References

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Suggested Reference: American Psychological Association Practice Organization. (2010). Psychologically Healthy Workplace Program Fact Sheet: By the Numbers. Retrieved from http://www.phwa.org/dl/2010phwp_fact_sheet.pdf