Is stress making your staff ill? You could pay dearly for failing to take action.
Do you recognise this man? He's a strong leader. He's bright and capable. He gets things done. He takes on big responsibilities and seems to handle it. Despite his youth he's already senior in the department and looks destined for the board.

Then the picture starts to curl at the edges. Something is going on at home - not surprising considering the 60-hour weeks and four-hour round-trip commute, but, then, everybody's in the same boat, aren't they? And twice the client has lodged complaints - uncharacteristic on this project - and one of them was a pretty serious oversight on his part. Then there's the personality clash between him and a team member that happened three months ago but just keeps festering and is starting to get in the way.

This common scenario shows what's best and worst about the industry, according to Caroline Suggett, managing director of RoM, a construction consultancy that offers executive support and counselling. Best: it's a rewarding playground for dynamic, talented people intent on achieving big things. Worst: it burns them out in the process.

Construction could do with slowing down the rate of combustion. For one thing, it's more humane, and for another, it will help companies get more out its people for longer.

Kicking the cat
Construction is stressful. The CIOB reports that 60% of the calls it gets about occupational health are about stress. Construction is second only to mining in the stress league of industrial production occupations, according to a 1988 study at the University of Manchester Institute of Science and Technology.

Stress costs money. Stressed staff don't just kick the cat any more; they kick their employers. In 1995 social worker John Walker won £175,000 from Northumberland County Council. In 1999 retired housing officer Beverly Lancaster won £67,000 from Birmingham City Council. And last year administrative assistant Olwen Jones won £157,000 from a local authority in Sandwell.

Those are some of the stress cases that went to court. They were all in the public sector, with its unionised, procedure-oriented workforce. Construction may be different, but stress claims represent a growth industry. The TUC reports 6,428 work-related stress claims this year compared with 516 last year. That's a 12-fold increase in one year. If the nation's workforce is that stressed and litigious, it may be short-sighted for managers to assume that construction, with its work-hard play-hard culture of trust, teamwork, camaraderie and entrepreneurship, will be immune forever.

The human condition
Stress is a barrier to attracting and keeping talent. A 1996 study found that among a group of 22 construction lecturers in Northern Ireland, 14% cited stress as the main or major reason for entering the classroom. Before the jibes about "Them as can't…", consider that in the same study 40% of construction managers still in the industry could understand how stress was driving people out of it.

Whether he knows it or not, the bright young construction manager sketched at the beginning is heading for the fire escape. He will either jump or be pushed.

Stressed staff don't just kick the cat, they kick their employers

"If you don't notice the situation and offer support you'll lose your key assets," says Suggett, who agonised for a year over whether or not to call the service she provides "counselling" because it conjures up notions of therapy and weakness. In the end she decided counselling was what it should be called because that's what it is. She now has four clients in her growing executive support and counselling practice, and all of them are directors or partners. Suggett added on the service after 15 years offering marketing and business development consultancy to construction companies. She reckons that in 80% of her total client base there are individuals who need some help with stress.

"Stress gets misinterpreted as underperformance, personality clashes, attitude problems," she says. "That's because under stress you try the same old responses to situations and they don't work. You blame and block. The remedy is to give people back control over outcomes."

Mary Hale is an independent counsellor specialising in stress and work-related issues, used by ICAS, one of the leading employee assistance programme providers. She says stress is caused by the feeling of responsibility without power, when people try to manage events over which they have no control.

"If you make a strong man helpless, you will make him cry or fly into a mad rage," she says. "If people are using language like 'I can't,' 'It's hopeless,' 'I must,' 'You've no idea…,' it means they feel trapped and helpless. One way of dealing with it is to unpack, unpack and unpack, keep asking questions like 'What would happen if...?' and that way start arriving at the art of the possible. Maybe they need to make the difficult decisions, which could mean disappointing somebody, and speaking up in defence of their decisions."

What is to be done?
Possibly because they are too busy, construction companies don't do much about stress. The acme of best practice now seems to be providing free, confidential counselling to employees through employee assistance programmes (EAPs). A few companies do this, including Galliford Try. Human resources director Tony Welch says the service is worth the small cost.

"We find that stress is most often not work-related," he says. "It could be legal, marital or financial, but being able to open up and talk to someone about it makes all the difference."

Counselling services can be an early-warning system. If there is a cluster of calls about bullying in one department, the EAP provider can raise the issue so the company can sort it out. Welch says about 7% of staff have used the service.

At Pearce Retail Services HR director Roger Leveson plans to introduce voluntary, half-day workshops that diagnose stress and explore causes, and provide access to counselling for staff in need of professional advice.

Many claims, and they tend to be big, are settled out of court to avoid publicity

"If anyone believes that their work is putting them under too much stress, we would naturally take their concerns very seriously indeed," says Leveson, but admits that in the world of fast-track retail contracting, there is only so much a company can do.

"There is a dual responsibility between the company and its people. We run 24x7 working, with tight, fast-track programmes for retail clients, who can be very demanding. Even though we are a people-centred organisation, it is not possible to completely ring-fence individuals from the normal pressures of their job. At interview, we explain to prospective recruits that if they are looking for a 40-hour work week, and to work locally most of the time, this is probably not the right organisation and environment for them."

The law
It's not difficult for a company to defend itself against a claim in court, provided it has done some pretty basic things to take care of its staff. The court cases listed above, considered landmark rulings, generated a few basic principles in how to handle stressed workers.

Work caused Walker to suffer a nervous breakdown. The council arguably had no way of knowing this would happen so it was not liable. But when he returned to work he was placed under the same or worse conditions, and broke down again. Rule number 1: If you can see it coming, do something.

Lancaster was shifted from a back-office job to a public-facing one as a housing officer. She said she needed training. Birmingham City Council promised but didn't deliver. The pressures made her clinically depressed. Rule number 2… well, it's rather obvious, isn't it?

"It's a load of bunkum," said one employment solicitor who advises the construction industry, referring to how flimsy many cases turn out to be. In February, the Court of Appeal quashed all but one in a set of four stress cases. The cases, grouped under Hatton v Sutherland, cleared the air in its return to basic principles of duty of care.

So what about that 12-fold increase in stress claims? What's the problem if most fail in court? There's the rub, according to Paul Mander, a partner with City law firm Berwin Leighton Paisner. He says many claims, and they tend to be big, are settled out of court to avoid publicity.

Stress causes trouble in other ways. Think of the employee who "goes off sick". As weeks turn into months and parties start circling each other, the employee has a potent array of weapons. There is the unfair dismissal and personal injury suites of actions, but also since 1995 the Disability Discrimination Act (DDA). Under the Act an employee can claim unlimited compensation for having been discriminated against because they have a condition that affects their ability to perform – stress-related conditions included. An IDS survey of 9,000 DDA cases from 1996 to 2000 found that the second most common condition (18.2%) of applicants was "depression, bad nerves, or anxiety" – and 18% of these claims succeeded.

Partnering and stress

Partnering increases job satisfaction and makes work more fun, according to a straw poll of nine senior managers in construction, writes Sandi Rhys Jones. “It’s quite simple. Partnering removes the stress of confrontation,” says Ward Kennard, business development manager of Walter Llewellyn and Sons. “The job becomes the client, with everyone working closely together for the job – including the client. For instance, on one occasion the architect on a project couldn’t get the drawings completed on time, so we provided the necessary help to get the work done.” Another manager from a major contractor who does not want to be named says, “To get things done in this business, you need high levels of adrenalin.” The real issue, he says, is negative stress, which drains energy. His experience is that partnering contracts are generally less stressful because there is no ring-fenced margin. You can get on with designing the job without the stress of tendering and litigation clearing at the end. According to Terry Hodgkinson, director of Lemmeleg Building and Contracting, if partnering is ingrained in the fabric of the organisation, work is less stressful. “But the learning curve itself can be stressful, particularly in building and maintaining the appropriate culture,” he says. Hodgkinson believes non-work issues often cause stress. To address this he has developed an IT site strategy to cut the amount of time spent away from home. Three sites are now operating in this way. Andy McGrath of retail specialist Pearce has worked on a number of partnered projects. He says stress levels are markedly less than with traditional methods. However, Pearce has a flat management structure and he sees difficulties in applying partnering effectively to multi-layered organisations, where the partnering philosophy does not trickle down. Like most activities, partnering depends on preparation. It takes time and effort to establish the right relationship with partners. That done, though, it seems that partnering is a calmer way of working. Sandi Rhys Jones is founder of RhysJones Consultants. Call 020 7724 6735

A sense of proportion

One middle-aged regional director of a major contractor says stress is an unpleasant part of his job that he would like to change. “It’s all those bolts out of the blue,” he says. “Subcontractors submitting claims or requests for extensions with no warning, or inaccurate cost reporting, where you had predicted a margin of £140,000 and you’re told too late there’s actually a hole of £250,000 and you’re left wondering how do I deal with this and how do I tell others?” Occasionally he goes to his line manager. “But I choose what I’m going to see him about. I think about it carefully, and usually I already have a solution in mind. I don’t expect an immediate sympathetic ear.” As a site manager in former years, he used to get very stressed. Now he’s more philosophical and better able to keep a sense of proportion. One of the problems, he adds, is that managers get promoted too early. They may have been good joiners or engineers, or very aggressive, but are not yet equipped to manage. Recently he ordered a panicked junior colleague to go home and not stay all night as he was planning because at the 11th hour he and the tendering team had lost confidence in a ground solution they were proposing. The regional director had asked whether anybody really believed it would work. No one could put hand to heart, so he said they’d have to change it. The young man, an engineer and former site manager, steeled himself for an all-nighter. “’No,’ I said. ‘You will go home, live a normal life, phone the client at nine, say details will follow by the afternoon, will that be okay?’ He did, and it was. “I could see by the guy’s face that he was suffering. He was on this big guilt trip because he’d played a part in arriving at the faulty solution. I thought: am I going to support a business where people have to work all night? I mean once in a while in a predictable way, yes. But in a crisis?”

Handling stressed staff

Diane Sinclair, lead advisor on public policy for the Chartered Institute of Personnel and Development, says it’s better to implement staff well-being policies before people start going off sick. But if a line manager encounters a situation that threatens to end in a tribunal and there is no human resources department to help, here are some tips:
  1. Record every step in the process. The information will be used in court or at a tribunal so keep it fair and objective
  2. Give the employee time off and reasonable help, including financial support for counselling
  3. Consider re-assigning the employee away from a potentially stressful duty, or reducing responsibilities temporarily
  4. After six months of absence the rate of return is amazingly low, so keep in touch and consider a re-entry programme, even if it’s just a regular social visit so colleagues can play a part in rehabilitation
  5. An absent member of staff means more work for remaining colleagues. Managers have to predict and manage that as well
  6. Dismissal on grounds of capability could be the right route. If you think so, get legal advice. The procedure must be followed carefully and transparently

Better to burn than rust

Stress isn’t necessarily a bad thing. Too little can be as bad as too much. Management should treat it as any other health risk. Take these basic steps:
  1. Introduce policies on bullying or harassment
  2. Initiate anonymous reviews where workers assess their managers
  3. Promote healthy responses to stress through literature or posters
  4. Provide a confidential counselling service
  5. Investigate mentoring, coaching, a buddy system - anything that reduces isolation
  6. Teach managers how to recognise stress and deal with it
  7. Take an organised approach to staff training and development