Stress on the job: An executive update

Abstract

Executive Overview As recently as 1990, stress-related claims were the fastest growing segment of the Workers' Compensation System, and insurance costs seemed on a never-ending upward spiral. Now we find that while claims and costs may be down in some states, stress itself may be on the rise. Some of the sources of stress—such as downsizing, violence, technology, and diversity—are a part of the current business environment. Major changes have taken place recently in a number of states regarding the applicability of Workers' Compensation coverage, especially for stress-related injuries and illnesses. The multiple sources and effects of workplace stress, coupled with an elusive liability environment, require management to carefully consider their responses to this problem area. The potential negative ramifications of stress for companies and their employees are so substantial that it is crucial that managers act to aid their employees in the development of their coping skills and to reduce excessive stress in the workplace itself.