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High-Pressure Workplaces Lead to Higher Costs, Studies Show

  • Several studies have shown that high-pressure workplaces incur greater expenses than low-pressure ones
  • Company leaders often promote this type of work environment in the belief that it can create better productivity and profits
  • Negative effects of this company culture include higher health care costs, less worker engagement, and increased employee turnover

Summary by Dirk Langeveld

Companies have been striving, often with minimal success, to fill available job openings as the economy recovers from the shock of the COVID-19 pandemic. The labor challenge is prompting businesses to reassess their company culture, and several studies suggest that high-pressure workplaces can be less effective than business leaders think.

Highly competitive workplaces are often associated with increased productivity and profits, but they can also result in higher expenses as well. Research shows that these costs can be incurred in a number of ways:

  • Increased health care costs as employees are more likely to suffer ailments related to workplace stress
  • Greater disengagement from work, leading to more instances of absenteeism and errors
  • Higher employee turnover, with the company incurring the costs of advertising job openings and onboarding new workers
  • Other issues also arise from high-pressure workplaces, including employees being more likely to use vacation time to get a breather from their duties, lower productivity from disengaged workers, and less interest from job candidates due to a negative perception of company culture

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