The demanding environment of the professional services sector can be a breeding ground for stress. Long hours, demanding clients, and high-stakes cases take a toll on mental wellbeing. However, the consequences of ignoring this issue go far beyond employee health. Stress in the workplace is a major source of errors and omissions, leading to increased risk of professional indemnity claims and financial loss for firms.
By taking steps to manage stress and prioritise employee wellbeing, firms can not only create a happier and healthier workforce but also improve their bottom line.
High levels of stress in the workplace
Work-related stress, depression or anxiety is defined as a harmful reaction people have to undue pressures and demands placed on them at work.
Unfortunately, stress in the workplace isn’t uncommon. According to Health and Safety Executive (HSE) data, an estimated 875,000 employees (opens a new window) suffered work-related stress, depression, or anxiety in 2022/23. In the same year, these factors were responsible for 17.1 million lost working days. What’s more, evidence shows we’ve become more stressed in recent years. Much of this is down to the COVID-19 pandemic, which saw rates of self-reported workplace stress spike. But even now, stress levels at work are still significantly higher than before the pandemic began (opens a new window).
Employees in the professional services sector are particularly prone to stress. Working environments can be high-pressure, with long hours and large workloads. Lack of recognition, inadequate support, discrimination, and even the commute to work are all sources of potential stress.
The benefits of a mentally healthy workforce
By prioritising employee mental health, professional services firms can create a safer and more productive work environment. This translates to several benefits:
Reduced risk of claims: addressing stress can significantly reduce the risk of errors, missed red flags, and communication breakdowns, leading to fewer professional indemnity insurance (PII) claims and potentially lower insurance premiums.
Improved client service: a happy and healthy workforce is a productive one. Mentally healthy employees are better able to focus, manage complex tasks effectively, and provide superior legal representation to clients.
Enhanced employee retention: high turnover rates are expensive for firms. Investing in mental health can create a more positive work environment, leading to increased employee satisfaction and retention. Having a stable workforce can also help to eliminate continuity issues and minimise project disruption.
By contrast, failure to manage work-related stress can be detrimental for employees’ wellbeing and performance. For professional services firms, this could lead to claims or regulatory issues.
Managing stress to reduce risks
Given these consequences, insurers will give close attention to how firms are managing workplace stress and prioritising employees’ wellbeing.
Key strategies to manage workplace stress include:
Establish a clear policy on stress, and physical and mental health
Give employees support in their day-to-day work
Ensure workloads are manageable
Provide a safe environment for people to raise concerns, and address them promptly
Train managers to recognise the signs and symptoms of stress, and to manage conflict within teams
Encourage employees to take regular breaks and make use of their holiday
To prepare for insurance renewal, firms should put together a detailed presentation for insurers. Firms should demonstrate that they understand the impacts of stress in the workplace. They should also provide evidence of any action taken to manage stress and the impact on employee retention.
A comprehensive approach to wellbeing
By implementing the above strategies, professional services firms can help their employees to experience less stress in the workplace. However, not all workplace stress is work-related.
According to Deloitte (opens a new window), nearly half of Gen Zs and millennials cited long-term financial concerns as a source of stress. This reflects ongoing concerns around the cost-of-living. Family health and welfare, and day-to-day finances were other top factors contributing to high stress levels. This demonstrates the broader challenge of tackling workplace stress and mental health.
To address this, firms should consider investing in comprehensive employee benefit packages (opens a new window). These typically provide mental health support via an Employee Assistance Programme (EAP), often at no cost to employees.
An EAP can be a vital resource for employees to use if feeling overwhelmed and stressed. Access to counselling services can also help and offers support a cross a broad range of topics.
Other benefits that could help manage stress include:
Financial education – for example, signposting free resources for money and debt management, or structured financial education programmes in person or via webinars
Discount and reward schemes – help employees save on their regular purchases, including food shopping, insurance, and general household purchases
Salary exchange – in return for cycle-to-work schemes, season ticket loans, and increased employer pension contributions
Flexible working – reviewing working patterns may save employees money and valuable time, helping to relieve stress
Buy/sell annual leave – this can give employees more regular breaks to reduce burnout, or additional salary
Firms should ensure all benefits are accessible and visible to employees, with regular and easy to understand communication. This will ensure help can reach those in need.
Contact us (opens a new window) for more information, or visit our People Solutions (opens a new window) page.
