Low pay, which many workers complain about, comprises 56% reported significant impact on stress levels, an increase from 49% in 2019, according to the American Psychological Association's (APA) recent survey. Based on a study of 1,501 U.S. employees conducted between July 26 and August 4, 2021, the data, was noted as one of the highest levels observed by Vaile Wright, a clinical psychologist and the APA's senior director of health-care innovation.
Factors Causing Workplace Stress
Workplace stress has increased across various factors. After low pay, 54% of employees find long hours stressful, and 52% stress about a lack of growth opportunities, up from 46% and 44% in 2019, respectively. Despite increased attention to employee well-being during the pandemic, with improved access to mental health resources, the most impactful support for workers is increased pay, where one in three individuals prefers more money as their top desired work benefit.
Having numerous mental health and connection programs is good, says Wright to CNBC Make It. However, if employees don't feel they have enough resources to care for their families, it ultimately leads to stressed employees.
How Can it Be Addressed?
Addressing pay-related workplace stress involves a combination of organizational policies and individual strategies. Here are ways to alleviate pay-related stress:
Fair and Competitive Compensation
Ensure that employees receive fair and competitive compensation for their roles. Regularly review and adjust salaries to align with industry standards and employee contributions.
Transparent Pay Practices
Communicate clearly about the organization's pay structure and policies. Provide transparency regarding how salaries are determined, including performance, experience, and market rates.
Performance Recognition
Implement a performance recognition system that rewards employees for their contributions. Recognize and celebrate achievements through bonuses, incentives, or merit-based salary increases.
Career Advancement Opportunities
Offer opportunities for career growth and advancement within the organization. Establish clear pathways for promotion and development, linking career progression to increased compensation.
Regular Compensation Reviews
Conduct regular reviews of compensation structures to ensure they remain competitive and equitable. Address any disparities in pay to maintain fairness and employee satisfaction.
Financial Education Training and Programs
Provide financial education programs to help employees manage their finances effectively. Offer resources and workshops on budgeting, saving, and financial planning.
Employee Benefits
Enhance employee benefits beyond salary, such as health insurance, retirement plans, and other perks. Consider additional benefits like flexible spending accounts or wellness programs.
Incentive Programs
Introduce incentive programs tied to individual or team performance. Design programs that motivate employees by linking their efforts to tangible rewards.
Performance Feedback and Development
Provide regular performance feedback and opportunities for skill development. Recognize and reward employees who demonstrate continuous improvement and growth.
Support for Financial Well-being
Offer resources or counseling services to support employees in managing financial stress. Provide assistance programs or financial planning workshops.
Alleviating workplace stress related to pay involves a holistic approach that combines fair compensation practices, clear communication, career development opportunities, and additional benefits to create a positive and supportive work environment.
