The Rising Cost of Workplace Stress for UK Employers

Stress at work remains a pressing issue for UK organisations in 2025. According to the latest Health and Safety Executive (HSE) figures, 776,000 workers were suffering from work related stress, depression or anxiety in 2023/24 (HSE). Over the same period, 33.7 million working days were lost due to work related ill health and workplace injury, costing the UK economy £21.6 billion (HSE Annual Statistics).

The BBC recently reported that UK employees face some of the highest levels of job stress in Europe. Many employees highlight unrealistic workloads, a culture of constant availability, and limited control over their work as key factors behind rising stress levels.

For employers, this means tackling workplace stress is not a “nice to have.” It is a business priority.

What causes workplace stress?

While every organisation is different, some of the most common causes of work related stress include:

• Excessive workloads – employees consistently asked to deliver more than is achievable in their contracted hours.
• Lack of autonomy – having little say over how or when work is done.
• Poor role clarity – unclear responsibilities, conflicting demands, or shifting priorities.
• The “always on” culture – digital tools that create the expectation of constant availability.
• Limited recovery time – breaks and downtime squeezed, making it hard for employees to properly recharge.

When left unaddressed, these issues lead to lower productivity, higher sickness absence, and increased staff turnover.

The cost of ignoring stress

Research from CIPD shows that stress remains one of the top causes of long term workplace absence. Beyond absence costs, stressed employees are more likely to disengage, make errors, or look for alternative employment.

Ignoring stress is ultimately more expensive than taking proactive steps to manage it.

What employers can do

Here are practical steps businesses can take to reduce stress and create healthier, more productive workplaces:

1. Review workload and capacity
   Carry out regular reviews to ensure employees’ workloads are realistic and achievable.
2. Promote autonomy
   Where possible, give staff flexibility over how and when they complete tasks.
3. Be clear on priorities
   Ensure every employee understands their role, responsibilities, and what success looks like.
4. Encourage breaks and downtime
   Discourage a culture of constant availability. Senior leaders should model healthy behaviours, such as not sending late night emails.
5. Recognise the hidden work
   Value and acknowledge tasks like mentoring, emotional support, or team coordination that often go unnoticed but add to employee load.
6. Open communication
   Create an environment where staff feel safe to raise concerns about workload or stress without fear of judgement.

Why this matters for SMEs

Smaller businesses often feel the impact of stress more acutely. With leaner teams, the absence of even one employee can put pressure on the whole organisation. Addressing stress not only protects employee wellbeing, it also protects business continuity, reputation, and long term success.

Workplace stress is not just about individual resilience; it is about how work is designed and managed. Employers who take proactive steps to reduce stress create healthier teams, lower costs, and higher engagement.

If you would like to explore how your business can better support employee wellbeing and reduce workplace stress, hr inspire can help. From HR health checks to policy reviews and management training, we work with SMEs to build sustainable people practices that benefit both employees and the business.