PHWP: Good Company Newsletter: By the Numbers: A Psychologically Healthy Workplace Fact Sheet

May 20, 2008

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 compiled some of the facts you need in your back pocket.

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

Workplace Stress

• Seventy-four percent of employees say that work is a significant source of stress and one in five has missed work as a result of stress (American Psychological Association, 2007).

• Fifty-five percent of employees said they were less productive at work as a result of stress (American Psychological Association, 2007).

• 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).

Workplace 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).

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

• 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 has increased by an average of 10 hours per week, from 81 to 91 hours (Bond, Thompson, Galinsky, & Prottas, 2002, p. 2).

• In a 2006 survey of full-time workers in the U.S., nearly two-thirds of employees reported an increased workload during the past 12 to 24 months (Accenture, 2006).

• 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).

Work-Life Balance and Flexibility

• Only 29% of employers report that their companies offer work-life balance and just 20% of employees agree (Randstad, 2006, p. 36-37).

• 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).

• Thirty-one percent of adults experience stress as a result of managing work and family responsibilities and 35% cite jobs interfering with their family or personal time as a significant source of stress (American Psychological Association, 2007).

• “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).

• The total estimated cost to employers for full-time employees with intense caregiving responsibilities is $17.1 billion (MetLife Mature Market Institute & National Alliance for Caregiving, 2006, p. 4).

• Forty-three percent of working mothers would be willing to take a pay cut to spend more time with their children and more than 25% indicated that they were dissatisfied with their work-life balance (CareerBuilder.com, 2008).

• Thirty-seven percent of working fathers say they would leave their jobs if their spouse/partner could financially support the family and another 38% would take a cut in pay to spend more time with their children (CareerBuilder.com, 2007).

• 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).

• Work-family conflict was found to predict absenteeism in a study of employer-supported child care (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 and Healthcare Costs

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

• 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).

• 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).

• Two-thirds of U.S. adults are either overweight or obese (Ogden et al., 2006).

• 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 2006, workplace injuries resulted in 5,703 fatalities in the United States (Bureau of Labor Statistics, 2007).

• In 2006, 4.1 million cases of nonfatal work-related injuries or illnesses were reported in the United States; approximately half of these cases required a job transfer, work restrictions or time away from work (Bureau of Labor Statistics, 2007).

• An estimated 3.4 million non-fatal work-related injuries and illnesses were treated in emergency departments in 2004 and approximately 80,000 workers were hospitalized (Centers for Disease Control and Prevention, 2007).

• The total cost of occupational deaths and injuries was $164.7 billion in 2006, and 80,000,000 days were lost due to injuries (National Safety Council, 2008, p. 51).

• In 2005, workers’ compensation costs for employers totaled almost $89 billion (Sengupta, Reno, & Burton, 2007).

• Fifty-two percent of employees say their company does not do enough to promote employee health (Randstad, 2006, p. 36).
• Almost four out of five employees (79%) believe their employers should encourage employees to adopt healthy lifestyles (Towers Perrin, 2004, p. 8).

• 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, 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).

• 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).

• Forty-seven million people lacked health insurance in 2006 and the percentage of individuals covered by employer-based insurance decreased to 59.7% (DeNavas-Walt, Proctor, & Smith, 2007, p. 18-26).

• Between 2006 and 2007, premiums for employer-based health insurance increased an average of 6.1%, bringing the total premium for individual coverage to $4,479 and family coverage to $12,106 (Kaiser Family Foundation & Health Research and Educational Trust, 2007, p. 1).

• The increase in health insurance premiums in 2007 (6.1%) was higher than growth in employee earnings (3.7%) and more than double the 2.6% inflation rate (Kaiser Family Foundation/Health Research and Educational Trust, 2007, 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 for Americans to 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 House and Senate mental health parity bills would raise healthcare premiums by 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 2008 Psychologically Healthy Workplace Award (PHWA) winners report an average turnover rate of 11% compared to 40% nationally, only 21% of their employees report chronic work stress compared to 34% nationally, and PHWA winners report an 82% employee satisfaction rate compared to 66% nationally (American Psychological Association, 2008; American Psychological Association, 2008 [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 Survey Intelligence, 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, 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).

• In a 2007/2008 report, companies with the most effective health and productivity programs achieved 20% more revenue per employee, had 16.1% higher market value and delivered 57% higher shareholder returns (Watson Wyatt, 2007).

• 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).

References

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Agency for Healthcare Research and Quality. (2008, April). Mental health woes remain one of the top reasons for doctor visits. Retrieved May 19, 2008, from http://www.ahrq.gov/research/apr08/0408RA33.htm

American Psychological Association. (2007, October 4). Stress in America. Retrieved May 18, 2008, from http://apahelpcenter.mediaroom.com/file.php/138/Stress+in+America+REPORT+FINAL.doc

American Psychological Association. (2008, March 10). Top employers show investing in health and well-being leads to business success. Retrieved May 5, 2008, from http://apahelpcenter.mediaroom.com/file.php/146/National%2BPHWA%2B2008%2BRelease.doc

American Psychological Association. (2008, March 10). [Graph] Psychologically healthy workplaces have lower turnover, less stress and higher satisfaction. Retrieved May 5, 2008, from http://apahelpcenter.mediaroom.com/file.php/145/phwa_chart_08_lg.pdf

Anderson, D. R., Whitmer, R. W., Goetzel, R. Z., Ozminkowski, R. J., Wasserman, J., Serxner, S., & Health Enhancement Research Organization (HERO) Research Committee. (2000). The relationship between modifiable health risks and group-level health care expenditures. American Journal of Health Promotion, 15, 45-52.

AOL. (2007, July 25). Think you might be addicted to email? You’re not alone. AOL’s third annual “Email Addiction” survey. Retrieved April 3, 2008, from http://corp.aol.com/press_releases/2007/07/think-you-might-be-addicted-email-youre-not-alone

Bassi, L. J., Ludwig, J., McMurrer, D. P., & Van Buren, M. (2000). Profiting from learning: Do firms’ investments in education and training pay off? American Society for Training & Development White Paper. Retrieved April 2, 2008, from
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Bond, J. T., Thompson, C., Galinsky, E., & Prottas, D. (2002). Highlights of the national study of the changing workforce. No. 3. New York, NY: Families and Work Institute.
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Bureau of Labor Statistics. (2001). [Table R67] Number and percent distribution of nonfatal occupational injuries and illnesses involving days away from work by nature of injury or illness and number of days away from work, 2001. Retrieved May 18, 2008, from http://www.bls.gov/iif/oshwc/osh/case/ostb1222.pdf

Bureau of Labor Statistics. (2007, October 16). Workplace injuries and illnesses in 2006. Washington, DC: U.S. Department of Labor. Retrieved May 18, 2008, from http://www.bls.gov/news.release/pdf/osh.pdf

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CareerBuilder.com (2008, May 7). Forty-three percent of working moms would take a pay cut to spend more time with their kids, CareerBuilder.com’s annual Mother’s Day survey finds. Retrieved May 20, 2008, from
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Casper, W. J., Martin, J. A., Buffardi, L. C., & Erdwins, C. J. (2002). Work-family conflict, perceived organizational support, and organizational commitment among employed mothers. Journal of Occupational Health Psychology, 7, 99-108.

Chapman, L. S. (2005, July/August). Meta-evaluation of worksite health promotion economic return studies: 2005 update. American Journal of Health Promotion, 19(6), 1-11. Retrieved April 2, 2008, from
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Congressional Budget Office Cost Estimate. (2007, March 20). S. 558 mental health parity act of 2007. Retrieved March 20, 2008 from: http://www.cbo.gov/ftpdocs/78xx/doc7894/s558.pdf

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