Costing Violence and Stress at work VITTORIO DI MARTINO Bilbao, 25 November 2002

The dimension of violence The most important security threat to America’s largest corporations (Pinkerton 2000) In the EU, 9 million workers suffer physical violence, 3 million are subject to sexual harassment, 13 million to intimidation and bullying (European Foundation 2000) In Japan suicide is number two cause of death for bureaucrats, second only to cancer and before heart disease ( Reuters 2001)

The dimention of stress 26 to 29% Americans, depending on surveys, are affected by stress 26 to 29% Americans, depending on surveys, are affected by stress ( NIOSH, 2001) 41 million European workers ( 28% ) suffer health problems because of stress. Work-related stress is the second most common work-related health problem, after back pain. 41 million European workers ( 28% ) suffer health problems because of stress. Work-related stress is the second most common work-related health problem, after back pain. ( European Foundation, Dublin, 1996) In the UK 30% increase from 1990 to 2000 In the UK 30% increase from 1990 to 2000 (HSE 2000) Uganda : «Between 10% and 30% of Ugandan workers are likely to develop mental illnesses due to stressful working environments » Beatrice Wabudeya, State minister for primary health care. ( Radio Uganda ) Uganda : «Between 10% and 30% of Ugandan workers are likely to develop mental illnesses due to stressful working environments » Beatrice Wabudeya, State minister for primary health care. ( Radio Uganda )

Inter-action stress/violence violence stress

For the worker higher risk of accident physical or psychological illness deteriorating health pain, distress, disability and death stigmatisation and discrimination

For the community social security costs compensation claims disruption in family life disruption in social life increased violence

For the organisation DIRECT COSTS accidents illness disability death absenteeism turnover

Violence and absenteeism in the European Union

For the organisation INDIRECT COSTS reduced morale reduced commitment reduced efficiency reduced performance reduced productivity

For the organisation INTANGIBLE ASSETS company image creativity working climate openness to innovation knowledge-building continuous learning

The cost of violence and stresss - In the US the cost of stress has been calculated at $350 billion per year (Reed Group, 2001) - Absenteeism for workers exposed to violence is more than 30-40% higher than the average in EU (European Foundation Dublin, 2000) - In the European Union the cost of stress has been calculated at 20 billion Euro each year (European Commission, 1999) - Altogether it has been estimated by a number of reliable studies that stress and violence possibly account for approximately 30% of the overall costs of ill-health and accidents. Based on the above figures, it has been suggested that stress/violence may account for approximately 0.5 to 3.5% of GDP per year.( Hoel, Sparks and Cooper, 2000)

The dynamics Increased absenteeism Increased turnover Loss of skills Loss of knowledge Declining morale Increased costs Declining services or profits Declining productivity Insurance costs Retirement funds Safety and health Medical assistance Counselling Increasing demands for training and recruitment Diminishing markets for finished products Increased health problems in the community with reduced labour pool and diminished access to suppliers

Regulatory Approach PROMOTING AND ENFORCING REGULATION AdvantagesDifficulties ClearSmall DirectMicro “Scientific”Informal EffectiveNetworking

Cost/ benefit Approach REDUCING COSTS AND ENHANCING PRODUCTIVITY Advantages Advantages  better workplace  less absenteeism  less turnover  higher performance  higher competitiveness Difficulties ° not fully shown ° a variable only ° economics can work the other way around

The developmental approach BUILDING HEALTH, SAFETY AND WELLBEING INTO THE DEVELOPMENT OF THE A ORGANISATION  focus on knowledge  focus on learning  focus on quality  people centred  functional

From costing to developing Costs are quantified. Mobbing is a major health and safety cost for the enterprise Costs are balanced against the advantages of investing in a mobbing -free environment The elimination of mobbing is an integral part of the development of a successful enterprise

FinanceProduction PR HRD Marketing

beforeafter organisational individual $ $ $

THE HIGH ROAD Linking mobbing to other health and safety issues Linking these issues to managerial and economic goals, making the fight against mobbing an integral part of enterprise culture and growth Activating initiatives and self-sustained action at the workplace Supporting and stimulating this process and the creation of a virtuous circle by proliferation of best practices