Employers need to pay more attention to the levels of stress and anxiety in the workplace, key NHS advisers say.
The National Institute for Health and Clinical Excellence said the cost of work related mental illness was £28bn - a quarter of the UK's total sick bill.
Bad managers were the single biggest cause of problems, the group claimed.
But it said simple steps such as giving positive feedback, allowing flexible working and giving extra days off as a reward could cut the impact by a third.
As well as taking measures like these, NICE urged employers to invest in training for managers and
More than 13 million working days a year are lost because of work related stress, anxiety and depression.
Once the pay of staff, lost productivity and replacing ill employees are taken into account, the cost to employers hits £28.3bn a year.
To convince employers to act, NICE has designed a calculator to show the potential savings of supporting staff more.
It suggests that for the average firm of 1,000 staff, £250,000 a year could be saved.
Professor Cary Cooper, an expert in workplace psychology from Lancaster University who helped draw up the recommendations, said: "You cannot overestimate the importance of saying 'Well done' to staff, but so often it does not happen.
"Managers will tell you when you are doing something wrong, but not when you are doing it right."
Recession
But he said the problem was not just to do with staff taking time off.
"Presenteeism, where people come to work but add no value, is if anything more of a problem, especially during a recession.
"People are so scared that they go to work when they are not fit to," said Prof Cooper.
His remarks are supported by a recent survey by the Chartered Institute of Personnel and Development which revealed a quarter of UK workers describe their mental health as moderate or poor, yet nearly all continued to work regularly.
The NICE report said with the right environment work can even be a force for good as it can offer stability, purpose, friendship and distraction.
Dame Carol Black, the government national director for health and work, who produced a report calling on employers to take more of an interest in the health of their workforce last year, welcomed the recommendations.
She said it provided "clear, practical advice to promote mental well-being".
But a spokesman for the Confederation of British Industry said: "The mental health of staff is something firms have been making a priority.
"More and more schemes have been set up to support staff in recent years." mentoring for staff to help career development.
I read this article with interest because for those of us in people development, the issues raised are clearly understood by those companies that have an embedded culture of staff development (or organisations that bring in a senior manager with such a vision).
This is a real challenge for organisations that have a task oriented managerial ethos, relying on reactive, micro-management of staff which can often lead to a fear culture. I understand this is often of a focus on "getting it done" but tends to be a self perpetuating cycle of fire fighting.
Staff retention, especially of quality staff is becoming more difficult despite the recession.
We would recommend three key things for MD's to consider
1. What would be the impact if your managers stopped "doing" and instead, caused their team to tackle the tasks?
If the answer is that things wouldn't get done then why are we carrying these personnel costs?
2. What would happen to the company and staff stress levels if all our staff improved their motivation, skill and knowledge levels?
The answer is probably obvious so the real question is why we are not getting this benefits (see first point).
3. What happens when people from our A team leave?
Hassle, increased work load, reduction in departmental performance? Higher recruitment costs?
Mdina is a management development company but developing managers in isolation is often not enough. The managers have to have the motivation and tools to be able to develop their staff long after the 3rd Party development companies has left.
Our answer to this problem is DART which is the complete management tool for managing the performance and motivation of every staff member in an organisation. It also helps to highlight star performers that are at risk of leaving. The system manages the progression and succession of key personnel as they develop their skills and can even be used as a state of the art system for tracking performance incentives.
See www.mdina.co.uk/dart for more information.
Mark
Posted by: Mark Jacobs | November 13, 2009 at 04:10 PM