SMALL BUSINESSES AND STRESS

Introduction

Current estimates from the Chartered Institute of Personnel and development state the cost of stress to businesses ranges from £5billion to £11billion each year. The Uk has seen mental health problems surpass physical ailments as the main cause of long-tem illness.

Britain's small business sector is more prone than other sectors to suffer from poor work-life balance. Research undertaken by Bibby Financial Services found that 98% of small business owners and managers report feeling stressed at work. Over a quarter of those surveyed said that they felt under pressure from three-quarters to all of the time.

Small businesses have been the primary source of employment creation over the last 10 years and as such are making a significant contribution to the economy. They are functioning in a fast-changing and increasingly competitive market where flexibility, innovation and action-focused problem solving are important to their success.

In recent years a number of global factors have contributed to the stress experienced by small businesses:

Increased pressure to out-plan, out-innovate and out-perform competitors leading to reengineering, restructuring and redirecting of systems, policies and careers which if badly managed can cause stress

Technological changes that often fail to take into account employee well-being Downsizing with job losses or the threat of layoffs often leading to increased pressure and anxiety, and a reduction in performance

Inability to balance work and home life

Looking after the business

Few small businesses have the resources and budgets to invest in workplace health and well-being initiatives, they are using all of their resources in order to stay in business. Work-related stress affects both large and small businesses but employees who work for small businesses may experience higher stress levels. Because small businesses have fewer employees and resources, employees are often placed in work overload situations. The small business employee needs to be a generalist taking on a variety of roles and tasks at the same time. In addition people often assume these roles and responsibilities with little or no training.

Many small businesses are understaffed. Seasonal demand fluctuations, shrinking profit margins, lack of capital and lack of awareness and understanding of human resources needs, and ongoing uncertainty often lead to inadequate staffing levels. All too often the focus is on survival. This is Ok in the short-term but businesses cannot afford to risk high levels of employee stress and low levels of employee satisfaction impacting on their ability to meet customer expectations. Decreased income leading to under-investment in employee health and well-being will lead to further loss of income…and thus become a viscous circle.

Work-related stress can prove costly to the owner of a small business, the employees, the customers and the business itself. Ignoring employee health and well-being or making it a low priority can result in:

Reduced productivity and performance Poor decision making

Increase in mistakes which may lead to more customer complaints Poor morale and motivation

Negative impact on customer servicer Increased absenteeism

Increased staff turnover and difficulty finding reliable workers Poor workplace relations

Compensation claims

Damage the reputation of the business e.g. being seen as greedy and unfair

Stress often has a cumulative effect. If one member of staff takes time off it puts added pressure on the people covering for them. Given the competitive business environment and the importance of producing and delivering high quality goods and services it is important that small business owners take action to ensure employee health and well-being:

An full awareness of the signs of strain in themselves and their employees Putting in place support systems to educate staff about stress management Identifying the causes and effects of stress

Developing and implementing strategies to address them Monitoring the impact of these interventions

Sources of stress in small business environment include:

Work overload

Interpersonal conflict

Role ambiguity

Hostile and incompetent managers

Lack of personal fit with the job

Lack of recognition

Lack of clear job description or reporting structures

Fear uncertainty

Doubts about career progress

Prejudices based upon age, gender, ethnicity or religion

The conflicting demands of work and family

All of these can impact upon the attitude and performance of those working in the business. As an employer, the small business owner has a legal duty to ensure employees are not made ill by their work, which includes taking steps to ensure employees are not made physically or mentally ill by stress. The employer must include stress as part of their overall health and safety risk assessment. Failure to do so could leave the employer open to a compensation claim.

Looking after yourself

The small business owner faces a range of pressures and demands that can result in stress. These include; working in isolation, fear of bankruptcy or loss of credit, the threat of business closure to prevent future losses, management problems and employee related issues. They have to work hard in order to keep their business going and too often this has a detrimental impact on their relationships with family, their work and their health and well-being. It is important that small business owners take care of themselves, not putting the needs of the business before self-care. Treating themselves well means they are in a better position to look after the business. This means:

Getting enough rest ( eight hours a night) Eating a healthy diet

Exercising so you are more alert and fit, both mentally and physically Learning relaxation techniques

Daily meditation

Facing your fears and then taking some action to feel more in control Learning to detach

Avoiding setting too many tasks or goals Learning how to say "no"

Practicing better time management, which includes learning to do one thing at a time

Looking at the positives and the negatives

Learning to view things objectively rather than emotionally

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