Reducing stress and raising resilience to support a healthier workforce

Workplace stress is more than a personal struggle – it’s a strategic challenge. Hybrid working, shifting expectations and the pressure to perform are leaving employees feeling overwhelmed, particularly among younger generations.

While occasional stress can sharpen focus, long-term exposure to pressure erodes productivity, motivation and wellbeing.

Recent research from Barnett Waddingham shows that 37% of workers feel poor mental health is affecting their productivity – a figure that rises to 44% among Millennials. Gen Z employees are the most affected, with 63% having taken extended sick leave in the past five years. Among them, stress (85%), anxiety (78%) and burnout (74%) were the leading causes. Across all age groups, 46% of UK employees have taken extended sick leave during the same period.

In this context, effective stress management isn’t a ‘nice to have’ – it’s essential for a resilient, high-performing workforce.

Understanding the true cost – and cause – of workplace stress

The World Health Organization estimates that 12 billion working days are lost annually to depression and anxiety, costing the global economy $1 trillion a year. But numbers alone don't tell the full story.

To tackle stress meaningfully, employers need to go beyond surface-level metrics. That means turning data into intelligence – spotting patterns in absence, engagement and feedback – and understanding how stress plays out differently across roles, age groups and work styles.

For example, Gen Z may be more likely to report burnout, while older employees may experience presenteeism. Parents, carers, neurodivergent employees and others each face distinct pressures. Real-world insight, informed by proven analytical methods, helps employers respond with targeted, relevant support – not blanket policies.

The employer’s role in managing stress

A staggering 91% of workers reported experiencing high or extreme levels of stress in the past year and our younger generations are three times more likely to need time off due to stress-related health issues compared to older workers.  

When employers create the conditions for psychological safety, flexibility and meaningful recognition, people are better able to manage pressure – and perform at their best.

This doesn’t require big budgets or radical change. It requires the right balance of technology and human understanding. Small, thoughtful shifts – driven by insight – can make a significant impact.

Line managers and HR professionals are key players in this effort. As the first to notice changes in behaviour or performance, they need the confidence and capability to respond effectively. Initiatives like Mental Health First Aid training – a licensed, evidence-based programme – equip them with tools to recognise mental health challenges, communicate with care and signpost individuals to appropriate support.

Five targeted ways to support employee wellbeing

1. Equip managers and HR to spot and support

Training for line managers and HR teams is essential to help them recognise signs of stress, respond compassionately and provide appropriate signposting. Mental Health First Aid, for example, builds practical skills and confidence to support those in need.

2. Make support easy to access – and actively used

Resources like employee assistance programmes, wellbeing apps and mental health services are only valuable if employees know about them. Regular, timely promotion – especially via line managers – helps increase awareness and usage. Some organisations offer tools for mindfulness, meditation and breathing exercises that employees can access as needed.

3. Create a culture of psychological safety

Encouraging open conversations about stress and wellbeing builds trust and connection. Consider peer support groups, buddy systems, or an open-door policy where employees feel safe discussing pressures without judgement.

4. Design flexibility around real needs

The pandemic reshaped expectations around flexibility, but policies must reflect the lived reality of your people. Offering options like flexible hours, remote or hybrid arrangements and even 'work from abroad' policies shows genuine support – and reduces pressure.

Encouraging employees to take regular breaks – using methods like the Pomodoro Technique – and to fully use their annual leave also promotes balance and recovery.

5. Foster a culture of recognition

Appreciation builds resilience. Whether through a quick shoutout, spot reward, or formal programme like 'Thank You Fridays', acknowledging effort helps people feel valued and more engaged. Financial rewards or additional time off can also go a long way.

6. Incorporate stress-reducing activities

Wellness programmes – such as yoga sessions, art workshops, or guided nature walks – can offer employees a chance to decompress. Quiet rooms, relaxation lounges or wellbeing days help reinforce the message that recovery is part of high performance.

7. Measure what matters

Evaluating the impact of your wellbeing initiatives helps ensure they remain effective. That means listening to employee feedback, monitoring uptake of services and adjusting strategies as your workforce evolves.

Why does it matter?

Stress left unmanaged can quietly erode performance and morale. But when employers take an evidence-based, people-centred approach, the benefits are wide-reaching – from lower absence and turnover to a more engaged, motivated team.

At Barnett Waddingham, we help organisations apply real-world insight to workforce challenges – combining smart analytics with human understanding to shape tailored, practical solutions.

Discover how our Employer DNA approach can help your organisation create a healthier, more resilient workforce.