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Damage from stress payouts are only tip of the iceberg for employers


    Date:
    8 Feb 2001

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    The bad publicity generated by large pay settlements for victims ofwork-related stress causes more concern to employers than the actual sumawarded says Cary Cooper, Professor of organisational psychology at theManchester School of Management.

    According to Cooper, "The longer term problem of bad publicity leads toserious problems in attracting and retaining good employees. Employerswould be wise not to ignore the damage such litigation can do to theirreputations. Take for example the 300,000 recently awarded to theprimary school teacher and the coverage it attracted".

    He adds, "The tight labour market means there is intense competition atthe top for the best talent and prospective employees are becoming moreand more choosy about the type of organisation they want to work for -employer brand in today's climate really does matter".

    Cooper says, "Employers should try and concentrate on preventativemeasures to avoid cases reaching the tribunal stage. Organisations needto take action such as a risk assessment, which shows they have taken thenecessary steps to satisfy their legal duty of care to employees. Astress audit is also a good idea to diagnose potential problems andidentify those individuals most at risk".

    Last year, employers experienced a record 164,000claims for stress-related illness and injury - up by more than a third onthe previous year. Each day 270,000 people in the UK take time off workdue to stress, and each year stress costs seven billion pounds throughlost production, sickness payments and NHS charges.

    More information
    Stress and Employer Liability, by Professor Cary Cooper, can be ordered from the Chartered Institute of Personnel and Development (CIPD) on 01752 202301, priced £18.99

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