The importance of a strategic approach to stress
Lockton partner Brian Boehmer says a failure to consider and manage how people experience stress in high-pressure working environments can lead firms to lots of problems
The demanding environment of the legal sector can be a breeding ground for stress. Long hours, demanding clients, and high-stakes cases take a toll on mental wellbeing. However, the consequences of ignoring this issue go far beyond employee health. Stress in the workplace is a major source of errors and omissions, leading to increased risk of professional indemnity claims and financial loss for firms.
By taking steps to manage stress and prioritise employee wellbeing, firms can not only create a happier and healthier workforce but also improve their bottom line.
High levels of stress in legal
Work-related stress, depression or anxiety is defined as a harmful reaction people have to undue pressures and demands placed on them at work.
Unfortunately, workplace stress is a common feature of the legal sector. According to a report by legal software firm Legatics and YouGov 92% of lawyers experience stress or burnout because of their job — with over a quarter feeling it daily. Similarly, almost two-thirds of lawyers feel their job has negatively impacted both their mental and physical health.
There are various reasons why lawyers are stressed at work. Working environments can be high-pressure, with long hours and large workloads. Others may struggle from a lack of job satisfaction, particularly given the large volume of administrative tasks that legal work typically demands. Poor work-life balance, lack of recognition and inadequate support are all sources of potential stress.
What’s more, evidence shows the workforce has become more stressed in recent years. Much of this is down to the Covid-19 pandemic, which saw rates of self-reported workplace stress spike. But even now, stress levels at work are still significantly higher than before the pandemic began.
Growing scrutiny of workplace stress
Given the evidence, law firms are coming under increasing scrutiny around how they manage and mitigate stress in the workplace.
In May 2023, the Solicitors Regulation Authority (SRA) issued updated guidance on health and wellbeing in the workplace, after complaints that some firms had an unsupportive, bullying or toxic working environment and culture. The SRA acknowledged that such environments could significantly impact employee wellbeing and mental health.
The SRA has said that it will take regulatory action against firms where it deems there to have been a serious regulatory failure. This could apply in situations where the work environment does not support the delivery of appropriate outcomes and services to clients. Or where it creates a culture in which unethical behaviour can flourish, or where staff are persistently unable to raise concerns or have issues addressed.
Insurers are also paying close attention to how law firms handle workplace stress. As above, firms that fail to handle workplace stress could face potential investigation and regulatory fines. Insurers may also view stressed employees as more likely to commit errors in their work, increasing their exposure to negligence and related claims.
Managing stress to reduce risks
By prioritising employee mental health, firms can create a safer and more productive work environment. This translates to several benefits:
- Reduced risk of claims. Addressing stress can significantly reduce the risk of errors, missed red flags, and communication breakdowns, leading to fewer professional indemnity insurance (PII) claims and potentially lower insurance premiums.
- Improved client service. A happy and healthy workforce is a productive one. Mentally healthy employees are better able to focus, manage complex tasks effectively, and provide superior legal representation to clients.
- Enhanced employee retention. High turnover rates are expensive for firms. Investing in mental health can create a more positive work environment, leading to increased employee satisfaction and retention. Having a stable workforce can also help to eliminate continuity issues and minimise project disruption.
Some key strategies for managing workplace stress include:
- Establish a clear policy on stress and physical and mental health.
- Give employees support in their day-to-day work.
- Ensure workloads are manageable (for example, by dividing up work, or investing in new technologies to drive efficiencies).
- Provide a safe environment for people to raise concerns and address them promptly.
- Train managers to recognise the signs and symptoms of stress, and to manage conflict within teams.
- Encourage employees to take regular breaks and make use of their holiday.
By putting a detailed presentation for insurers together ahead of their insurance renewal, firms can demonstrate that they understand the impacts of stress in the workplace. They should also provide evidence of any action taken to manage stress and its impact on employee retention.
A comprehensive approach to wellbeing
But not all workplace stress is work-related. To ensure employees are adequately supported to manage stress, firms may also consider investing in comprehensive employee benefit packages. These typically provide mental health support via an Employee Assistance Programme (EAP), often at no cost to employees.
An EAP can be a vital resource for employees to use if feeling overwhelmed and stressed. Access to counselling services can also help, offering support across a broad range of topics.
Other benefits that could help with stress management include:
- Salary exchange — in return for cycle-to-work schemes, season ticket loans, and increased employer pension contributions.
- Flexible working — reviewing working patterns may save employees money and valuable time, helping to relieve stress.
- Buy/sell annual leave — this can give employees more regular breaks to reduce burnout, or additional salary.
Firms should ensure all benefits are accessible and visible to employees, with regular and easy-to-understand communication. This will ensure help can reach those in need.
Contact us for more information, or visit our People Solutions page.
