September 11 and the Madrid train bombings. Enron. The Arthur Andersen and Church scandals. A sluggish economy.

What do all of these have in common? Each of them, in its own way, is contributing to rising stress among American employees, according to recent studies. And while temporary stress - the kind that may push an employee to excel - can sometimes inspire greater productivity and creativity, unrelenting, gnawing stress can break a worker down both physically and emotionally. Unchecked, it can lead to "desk rage," including shouting matches and fistfights that directly impact office morale and turnover.

"A certain amount of stress, often called "good stress," may be acceptable if it comes in small doses," said Westaff Human Resources Representative Gail Jern. "It's something you can handle and then it goes away. 'Bad stress' is where you don't get any reprieve. A worker who has to deal with constant stress can find it difficult to set priorities, contribute to the team, and ultimately it can affect a company's bottom line." (See Side Story.)

While stress certainly isn't new, it's gotten significantly worse along with the threat of terrorism, corporate scandals, and the down economy. In fact, 54 per cent of employees said their job was more stressful than a year ago and 45 per cent said that because of stress they've considered leaving their job in the last year, left a job or plan to do so, according to a CIGNA Behavioral Health survey, "Worried at Work: Mood and Mindset in the American Workplace." As a direct contributor to absenteeism and higher health costs, "bad stress" now costs American industry $300 billion annually, according to the American Stress Institute.

Among the most significant contributors to rising stress levels is the threat of terrorism. Overall, 43 per cent of American workers say that people in their workplace express fear or anxiety about national or world events at least several times a week. Shaken by terrorist acts like 9/11 and the Madrid train bombings as well as the war in Iraq, many American employees are worried that their companies have yet to strengthen security measures or are lax about enforcing them, according to a Harris Interactive poll commissioned by the North Haven, Connecticut-based communications firm, The Marlin Co.

"The economy, war and terrorism are much greater sources of stress than they used to be," said Marlin President Frank Kenna, III. "One reason is that people don't feel they have control over them. So stress over these issues is always there in the background - and it's continuing to build and build."

The Marlin Co. recommends that companies address their employees' anxiety about security problems "because if people are sitting there worrying it's affecting their jobs," Kenna added. "So, even if you're not a compassionate company, you should be motivated by the fact that stress is affecting your dollars and cents."

Large corporations with millions to spend can hire a security company, but smaller companies can also address employees' concerns without spending a cent. One cost-effective measure: Meet with employees to come up with an effective plan and set of guidelines for making sure doors are secure, for example, or to deal with a stranger entering the building.

Another Marlin survey showed that 12 per cent of employees feel that wrongdoing by major institutions like Enron, Arthur Andersen and the Catholic Church have made them worry about the integrity of their own company's leadership. That lack of faith is undermining the performance of individual companies as well as the stock market, experts say. That's why managers need to become more visible to their employees and not just a name on a paycheck.

"Senior management needs to stay in constant communication with employees," Jern said, "to build up relationships. Managers should share good news - both large and small successes - so that employees are encouraged to focus on what the future looks like rather than stand around the water cooler grumbling about past problems."

But the biggest source of anxiety is the economy. Many workers have firsthand knowledge about the impact of layoffs through friends or family members. They've also had to shoulder the extra workloads of those who've had to leave their companies. More than a third of workers, for example, reported an increase in their personal workloads, according to a survey of 1,400 employees by Careerbuilder.com. They also reported staying at work longer hours and taking shorter lunches.

In response to all of this tension, some employers are taking preventive measures to help break up the stress of the day, balance employees' work/life demands, and boost their sense of well-being. More employers, for example, now offer on-site perks - everything from head/neck massages, to fitness centers, child care services, grocery delivery and shoe shines.

"Just a little respite in the middle of the day or help making life's tasks a bit easier can give an employee a much needed mental break and the energy to get back and re-focus on their work," Jern said.

In this economy, it may seem extravagant or a waste of time to offer employees neck massages. But given that stress causes 40 per cent of turnover, in the long run reducing stress and building an employee's sense of well-being and loyalty is a sound investment.

"The primary benefit is that employees say, 'Hey, management cares about me - they're reaching out to help me deal with my stress and I like that.'" Kenna added. "And when your employees are on the same page as management it makes a huge difference in terms of creativity, productivity and idea generation. All of that pays for all the dry-cleaning or shoe-shining you'd ever need."