Deteriorating psychological well-being

Mental health and addiction problems have been estimated to cost the Canadian economy upwards of $30 billion annually.5 And it’s estimated that depression costs the NAFTA economy (Canada and the US) $60 billion (US) a year.6

Disability represents anywhere from 4% to 12% of payroll costs in Canada and mental health issues are now the leading cause of short- and long-term disability.7 It’s estimated that 35% to 40% of long-term disability (LTD) claims in the private sector are because of anxiety, depression and other stress-related conditions. In fact, LTD claims citing mental health as their reason have doubled within the past 10 years.8

Private sector statistics are closing in on public sector ones, in which close to 44.3% of employees cited depression and anxiety as the reasons for going on long-term disability in 2002.9 (Cancer was the second most prevalent reason for claiming LTD, followed by skeletal-muscular problems in both public and private sectors.)

But depression also has hidden costs for an organization — increased behavioural and performance problems, increased absenteeism and errors, as well as reduced productivity, engagement and customer service.

Months of corporate cost-cuttings and downsizings haven’t helped the situation.

Relentless deadlines, 24/7 demands, job insecurity, increasing workloads, bad management and short-term thinking in the business world are cited for the explosion in short- and long-term disabilities and skyrocketing prescription medication costs. It’s now estimated that 14 million working Canadians suffer from depression – many of them undiagnosed.10

The World Health Organization (WHO) agrees, predicting that by 2020, depression will be the second-leading cause of disability in the world, up from fourth place in 1996. The WHO projects mental disorders’ share of the total global disease burden will rise to 15% by 2020, an increase of almost 50% from 1990. Much of that is driven by rising rates of depression.

And the problem is getting worse:

Sufferers are getting younger — 20% to 40% of cases are under 27.

The economic costs of mental illness (all forms) in Canada today are the equivalent of nearly 14% of corporate Canada’s net operating profits and about 3% of the country’s national debt.11

What organizations can do

The problem for employers is that most depressed employees are reluctant to admit their illness due to the stigma attached to depression and other mental health issues and fears of reprimand or dismissal. This only increases the hidden costs to organizations – lowered productivity and increased absenteeism. What can organizations do? They can:

• Implement a comprehensive employee assistance program. This provides employees and managers with a convenient and confidential way to access counseling, information and community resources 24 hours a day, 365 days a year.
• Train managers to recognize signs of depression and anxiety and how they can support team members.
• Implement policies and procedures that support managers and employees dealing or coping with mental health issues.
• Create health and wellness initiatives that educate the workforce, help reduce any perceived stigma and demonstrate that the organization supports the physical and emotional health of its employees. These can include seminars, workshops, flyers and health fairs.
• Establish a disability management process that assists and supports workers on short-term disability in returning to meaningful and productive work in a timely manner.

5 Health Canada, 6 Global Business and Economic Roundtable on Addiction and Mental Health. The Centre for Addiction and Mental Health. 7 Watson Wyatt. 8 Health Canada. 9 Treasury Board. 10 Centre for Addiction and Mental Health

Take from: WORKFORCE RISKS, Part ONE of a three-part series. Sponsored by: Ceridian Canada, 2010. Pg 9-11

Beat performance (review) anxiety

New managers need to thoroughly prepare and show respect for employees

BY CAITLIN CRAWSHAW, FREELANCESEPTEMBER 24, 2009

It's that time of year again -- but this time, you won't be the nervous employee sweating bullets and chewing his nails in the boss's office.

Nope, it's even worse. As a new manager, you'll be on the other side of the table, assessing each and every one of the employees you oversee. It's a new responsibility that may be keeping you up nights, anticipating hostile reactions from defensive staffers who, in some cases, may once have been your peers.

There's a simple reason that new managers dread this process, says Angela Merriott, human resources leader at Edmonton firm Shaw Pipe Protection.

"People struggle with taking constructive criticism, which is where I think the root (of this anxiety) comes from," she says. "When you struggle with taking it, it's really hard to give it to someone else."

This discomfort causes many new managers to skip the tough conversation in favour of a watered-down, friendlier version, says Merriott. "It's easier for people to say, 'Hey, you did a great job!' whether it's based in reality or not."

But even the best worker has something they need to improve on and that's the entire point of a performance review -- to address weak spots and create a plan for professional growth. It's good for the team, the company and even the employee, who need to know what's expected of them and how they can succeed.

A successful performance review starts with good preparation. You, as the manager, need to thoughtfully assess the employee's strengths and weaknesses. Many companies have employees fill out their performance appraisals ahead of time and present them to the manager a week before their meeting.

It's a good practice that allows the manager to identify gaps in communication and involves the employee in the process, she says.

Andreas Hesse, an HR consultant based in Vancouver, says it's crucial that performance reviews be treated as a two-sided conversation.

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"There shouldn't be a drastic change in tone from how you've been interacting with your employee to now," says Hesse, adding that this will only create stress on both sides.

At the meeting, managers should allow employees to talk about their own performance, set goals for the year and help decide professional development plans.

It's also a great opportunity to get an insider's view on what the company could be doing better. "Often managers only ask at an exit interview, when the employee already has one foot out of the door. But, if you're having these conversations regularly, the employees and manager can make improvements."

Treating this conversation as a "two-way street" makes employees feel respected and can help a new manager earn respect, in turn.

"That really improves the working relationship between a manager and staff," he says.

While these strategies can help the conversation go smoothly, there's always a chance an employee will become emotional if they hear something they don't like. When this happens, the best course of action isn't to ignore the reaction, but to talk about it, says Hesse.

"It's important to understand the reason for the emotional outburst, to deal with it and acknowledge it ... and bring it back to the manager's agenda," he says.

If this doesn't work, plan to finish the meeting after the employee has had a chance to cool down. Make sure that you follow up with the employee the next day to see how they're doing. If you don't deal with it, they may start gossiping with their colleagues about the experience, which can create anxiety among those who haven't had their performance review yet, says Merriott.

Both experts agree that conducting a performance review is easier when the manager has given feedback throughout the year -- both informally and formally. In fact, many companies now provide more than one performance appraisal during the year, Merriott says. "Companies are going towards a formal twice-a-year process and having informal discussions on a monthly basis."

She adds that this is a great way to retain "A-people" who may leave a company if they aren't getting consistent feedback. It also makes performance evaluations less stressful for both employees and managers.

"If you're consistently providing feedback, correcting behaviours when you see them and providing positive feedback when there's change, there shouldn't be nerves going into (a performance appraisal)."

Souce: http://www.timescolonist.com/business/Beat+performance+review+anxiety/1356773/story.html