Legal/Insurance
The average cost of a successful stress claim in the UK is currently over £100,000. In addition to the personal cost involved, the damage caused to an employer’s reputation by this type of claim is significant. There are also related costs of lost productivity (for the individual and the team), additional HR and management time, and possibly professional fees. Bullying and harassment claims in many organisations are more frequent than stress claims and can also be prove extremely costly.
Insurance costs such as employer liability; health insurance; accident insurance and absence cover premiums have risen significantly for many employers over the last few years and projections show that they will continue to rise unless employers adopt new ways of managing the organisation. From April 1st 2008 Corporate Manslaughter charges are another risk that employers of all types will need to protect themselves against.
A Wellness Management approach is an effective way of reducing the risk of claims for stress, bullying and harassment. Furthermore, some insurance companies have agreed to reduce their premiums for organisations that implement a Wellness Management strategy. Savings in insurance premiums go straight to the bottom line as extra profits. Costs due to stress and bullying and harassment have the reverse effect of directly impacting budgets and profits.