Recession blues?
by Dave Johnson, Editor
June 4, 2009
Research doesn’t show injuries increasing
In April we received this email,
edited here for brevity:
Mr. Johnson,
I am a police officer in
Edmonton, Alberta. I have been
researching the effects of low morale
usually associated with job stress/job
dissatisfaction on officer safety performance.
Have you noted a relationship
between employee morale (job satisfaction)
and employee performance
with respect to safety?
Olena Fedorovich
Dear Olena,
Excellent question. With the economy
in the tank, you would think employee
morale is taking a bath. I emailed your
question to 112 occupational safety and
health experts; and searched the Internet
to review published research.
I learned there is no easy answer for
you. Safety and health experts disagree
vehemently on whether low morale leads
to an increase in injuries.
From consultant Bob Veazie: “Yes, LOW
MEANS MORE
INJURIES.” (The emphatic capitalization is his.)
“The short answer is yes, the potential for errors
and injuries is greatly increased by low morale,” said
Michael Topf, president of Topf Initiatives.
We also received these responses:
“I’ve seen less than sterling EHS performance during
times of a robust economy, when morale was
seemingly high, and commendable EHS performance
during times of stress,” reported Chris Laszcz-Davis,
principal of The Environmental Quality Organization.
“I looked at this question during my research for
my Ph.D. One of the surprising things I found was
that plants with a more positive attitude had workers
who were willing to take more chances in their general
behavior toward safety,” recalled Henry Lick, former
director of industrial hygiene for Ford Motor Company.
Are you sufficiently confused, Olena?
The problem is a paucity of empirical evidence connecting
morale, job satisfaction and job distress to safety
outcomes. The expert responses I received often carried
qualifiers: “I believe,” “I would think,” “It’s tough to
determine,” “I suspect.” Dee Woodhull, a consultant with
ORC Worldwide, said it best: “This (low morale, high
distress equals more injuries) seems to be one of those
myths in the safety profession we assume is true.”
Stick to the facts
Mired in opinion and mythology, Olena, let’s stick
to the facts:
• Levels of distress among employees have been
rising long before the current recession. Time magazine
ran a cover story on June 6, 1983: “Stress: The
Epidemic of the 80s.” Dan Petersen, in an interview
with ISHN published July 18, 2003, said:
“In the last 10 to 15 years I have never seen the
number of pissed off and angry people working
in companies.”
• Occupational injury rates have plummeted
during this timeframe. By 2007, the incidence rate
for private industry had dropped to 40 percent of
its 1972 value, according to the Bureau of Labor
Statistics.
• “The rate of growth of the workplace incidence
and illness rate drops about 2.5 percentage
points during the 20 months leading up to the
(recession) trough, before bottoming out in sync
with economic activity,” writes Frank A. Schmid,
director and senior economist for the National
Council on Compensation Insurance, Inc. (NCCI), in
a paper, “Workplace Injuries and Job Flows,” published
March 28, 2009.
“Of particular interest is the Great Depression,”
writes Schmid. “The recession-related drop in (injury)
frequency growth during the Great Depression was
the most extensive of all recessions.”
One myth of the Great Depression was punctured by
John Kenneth Galbraith in his 1954 book, “The Great
Crash: 1929.” Galbraith wrote that the image of speculators
hurling themselves from Wall Street windows
in a suicide wave following the stock market crash is
“part of the legend of 1929. In fact, there was none.
The suicide statistics for New Yorkers show only a
slight deviation from those of the country as a whole.”
So here is the situation: 1) the U.S. economy is as
bad as it’s been in 50 years; 2) distress levels have been
increasing for decades; 3) during that time injury rates
have dropped significantly; 4) historical statistics show
no correlation between recessions, depressions and
increased injuries (author Schmid calls this “the dog
that did not bark”).
Why doesn’t the dog bark?
What gives, you’re probably wondering, Olena.
Here are potential reasons for the decline in injuries
despite hard times and increasing distress:
• Workplace injury rate under-reporting.
According to a 2008 House Committee on Education
and Labor hearing report, under-reporting estimates
range from 33 to 69 percent. Among the reasons
cited: OSHA logs are maintained by employers, who
might have an incentive to under-report to avoid
inspection, or win safety performance contests.
• Fear of job insecurity. As a result, safety complaints
and reports of minor types of injuries that can
be covered up can decline. “Fear of job loss causes
many in the workforce to travel under the proverbial
radar to not be noticed,” said James Leemann of the
Leemann Group LLC.
• Fear drives risk aversion. “What causes risk
aversion?” asked A&K Ross Associates in a paper
presented at the 2005 International Rail Safety
Conference in Cape Town, South Africa. “Basically
fear. Fear of blame, fear of job loss or promotion, fear
of media scrutiny when things go wrong, fear of prosecution.”
The result, according to the authors: “An
overly cautious approach to safety.”
All caution was tossed out the window in the consumer
spending spree and extreme risk-taking of financial institutions
in the years leading up to the recession. But now,
bewildered by a recession with no end in sight, risk aversion
has reach new heights, according to a September,
2008 Merrill Lynch Survey of Fund Managers. Investors
have taken a “flight to safety” with the most risk-averse
mindset yet recorded, according to the survey.
• Survival first. “Most folks I know today are
grateful to have a job and anxious to work safely and
effectively,” said Laszcz-Davis.
“I do not think a ‘morale meltdown’ precipitates an
increase in at-risk behaviors or more injuries,” said
Leemann. “It results in just the opposite behavior.
Most people are in such a survival mode the last thing
they want to do is lose their job.”
• Humans could be naturally risk-averse.
Behavioral economists have discovered “losses hurt
twice as much as gains feel good, driving our risk-taking,”
writes Michael Shermer in “Irrational Economic
Man,” published January 11, 2009 in City Journal magazine.
“So deep and powerful an economic emotion is
this aversion that it may be an evolved trait,” he writes.
• The innate pursuit of esteem. This pursuit
“makes people loss averse,” write Tyler Cowen and
Amihai Green in a paper published February 13,
2003, “Esteem and Risk Aversion.” “When esteem
enters the picture, individuals are more likely to be
strongly risk-averse,” the authors write.
• Low moods. Symptoms of low mood — fatigue,
loss of motivation and interest, pessimism, and the
behavioral inability to feel rewarded by previously
pleasurable activities — function to reduce risk-taking,
according to Daniel Nettle in an article published
in the Journal of Theoretical Biology.
As the mood state deteriorates, the riskiness of behavior
will decline until it becomes highly risk-averse. Low
moods sap individuals of the energy, enthusiasm and
optimism needed to believe risks will pay off.
To sum it up, Olena, plenty of evidence exists that
low moods, low self-esteem, risk aversion, and fear
of job loss — recession blues — all contribute to
reduced risk-taking and lower injury rates. Historical
injury statistics tied to business cycles bears this out.
Distress and injuries: a shaky connection
There’s one more point we should make, Olena. In
your email, you connect low morale, job distress and
job dissatisfaction, as though they are one and the
same. Research tells a different story:
• “An individual’s actual level of morale has
no influence on their level of distress, and vice
versa,” write Peter Cotton and Peter M. Hart in
“Occupational Wellbeing and Performance: A Review
of Organizational Health and Research,” published in
the July, 2003 Australian Psychologist. “The factors
influencing levels of morale are not the same as those
determining levels of distress.”
To simplify the authors’ model, morale and job satisfaction
are more a function of one’s cognitive states,
a matter of making mental judgments, evaluations and perceptions about work. Distress —
or its opposite: energizing, motivating stress — emanates more from
side, anxiousness, anger, guilt,
sadness, energy, enthusiasm and pride.
• “Stress researchers have failed to link indicators
of occupational stress to relevant organizational
outcomes,” which would include injuries, state
Cotton and Hart.
This “failure to link” is also referenced in the 2006
book, “Human Safety and Risk Management,” by A
Ian Glendon, Sharon Clarke and Eugene F McKenna.
The relationship between job distress, job dissatisfaction
and injury is moderated by several factors, according
to the authors: safety knowledge, safety motivation,
safety culture, social support from co-workers, relationships
with supervision, management concern and
support, and personality type.
• The “selling of distress.” In our review of relevant
research, we discovered most claims of a connection
between job distress and costly injuries
were made by organizations or associations with a
vested interested in promoting the prevalence and
cost of job distress — stress reduction coaches
and consultants, stress institutes, etc. Most of the
research relates distress to the costs of increased
absenteeism, presenteeism (mentally checking out
while still on the job), high turnover, substance abuse
and stress-related workers’ comp claims (typically
cases of subjective mental anguish or back injuries,
not more objective injuries such as body blows, falls,
crashes or amputations).
We don’t want to diminish the damage caused by
job distress. It’s real, and it’s costly. But the impact
is on one’s overall well-being, especially mental and
physical health, more than traumatic injury causation,
according to research.
NIOSH makes this point in its booklet, “Stress…
at Work,” (NIOSH Publication 99-101) stating: “Job
stress poses a threat to the health of workers, and in
turn, the health of organizations.”
Important findings
So Olena, we’ll leave you with three discoveries we
made in the course of our research:
1 — Injury rates follow business cycle behavior,
but counter-intuitively. According to the NCCI report,
“Workplace Injuries and Job Flows,” in recessions job creation
plummets while job destruction soars. Job destruction
(layoffs) decreases the growth rate of workplace
injury and illness rates. Why? The most inexperienced
workers are laid-off first, and the longest-tenured workers
survive. Approximately 30 percent of all reported injuries
in manufacturing are associated with workers who have
been with their current employer for less than one year,
according to the Bureau of Labor Statistics. Coming out
of a recession, when hiring increases (job creation), injury
rates will rise as more inexperienced workers land jobs.
2 — Focusing on the morale, job satisfaction, and
distress of employees can lead to a “blame the worker”
mindset. “Substantial improvements in the levels
of occupational wellbeing will only be achieved by
focusing on improving leadership and managerial practices
and other aspects of organizational climate,” write
Cotton and Hart. “Organizational climate is the strongest
determinant of individual morale. Organizational
development programs that improve the quality of
leadership practices and organizational climate are
likely to have a greater impact on reducing workers’
compensation premiums than traditional occupational
health and safety risk management approaches.”
3 — “Personality is the strongest determinant of
individual distress, write Cotton and Hart. Look for
“withdrawal behaviors” that negative emotions trigger:
absenteeism, turnover, submitting stress-related comp
claims, lack of participation, decreasing volunteerism,
and isolation and alienation (leading in extreme cases
to potential violent outbursts). Keep in mind that after
personality, morale and organizational culture are the
two biggest influences on withdrawal behaviors.
So if officers in your Officer Safety Unit are not
wearing body armor or carrying radios when they
should, don’t be too quick to pin it on the recession,
poor job satisfaction, or distress. Step back and look
at your organization and the level of communication,
social support, training and education and concern
and empathy on the part of supervisors and managers.
Regards,
Dave Johnson, Editor
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