In the face of the worst recession for 60 years, even the most resilient of small business owners is likely to feel stressed. Business is down, money is getting tighter and workloads are unrelenting.

Addressing the root causes of stress is essential to ensure the wellbeing and performance of both you and your employees but also to safeguard the overall health of your company. So how should you approach stress and what steps can you take to manage it in your business?

Why tackling stress is good for business
The cost of neglecting stress in your business can be high. The unexpected absence of just one member of staff can greatly affect productivity and efforts to secure cover can be costly and time-consuming. "It is estimated that absence currently costs over £600 per employee per year in direct costs. For a small business with 30 employees this means an average cost of more than £18,000 per year, which is a significant outgoing," explains Fiona Robson, human resources expert at Newcastle Business School.

Your legal obligations as an employer
As well as lost productivity and rising sickness absence, there are legal implications that can escalate the cost of stress to businesses still further. For example, the risk of compensation claims for stress-related injuries and illness are making it more important than ever for employers to exercise their duty of care by reducing the incidence of stress at work.

The Health and Safety at Work Act 1974 states that employers have a general duty to ensure, so far as is reasonably practicable, the health, safety and welfare of their employees at work. This includes taking steps to make sure they do not suffer stress-related illness as a result of their work. The Management of Health and Safety at Work Regulations (1999) also places an obligation on employers to conduct a thorough assessment of the risks employees are exposed to at work.

Identifying the pressure points
For the owner-manager, it's about recognising the issues that cause stress in the business and taking appropriate steps to alleviate it.

• Job insecurity - one of the biggest causes of stress during the current downturn is the fear of redundancy. Don't be tempted to rush through things because you're under pressure; maintaining standard practice and making sure you get it right will pay off in the long term by preventing undue stress and pressure.

• Work overload and excessive pressure can be major stress triggers. The danger of overloading staff to the point that they are no longer effective is a very real issue when operating in a tough market.

• Insufficient workload - beware of ‘underload', not enough work can be just as stress inducing. Managing work and sharing the burden across the whole team is key to keeping employees involved and engaged.

Know the signs
It's all about knowing your people. Are there changes in their behaviour, is their work suffering, do they suddenly become withdrawn or are they increasingly absent? Being constantly vigilant and becoming good at spotting stress in others is a vital skill.

Stress can manifest itself both physically but also mentally. Stressed individuals are prone to making more mistakes and may display behaviour that is irritable and touchy. It is when stress is suppressed that it does the most harm. It is important to create a supportive environment which prevents stress from festering and spiralling to a point where a person is no longer able to come to work.

Work with staff to combat stress
One of the best ways of assessing stress levels in your business is to carry out a stress audit. This can also help you to assess the risks of stress that people in your business may face as part of your health and safety risk assessment.

A stress audit involves talking informally to staff to find out where there may be concerns. It is important to let your people know why you are carrying out the exercise and what you are trying to achieve. Revisiting this every six months demonstrates that you are committed to addressing the concerns raised and enables you to monitor how effectively this is being achieved.

Top tips for managing stress at work

1. Communicate - even when there is nothing to say, keep talking to your people and keep them involved.

2. Manage workloads effectively - take the time to systematically review the way things are done and use technology to your advantage.

3. Get access to good advice - if you don't have a legal or HR expert within your business, signing up to a professional advice service can be a cost effective solution.

4. Offer access to medical advice or a health cover plan – private medical insurance will pay out for treatment and will help get people back to work early.

For more information visit www.northgatearinsoemployerservices.com