Organizational Wellness

Workplace Stress: Understanding, Managing, and Preventing It

Last Updated Aug 21, 2025

Time to read: 16 minutes
Homem sorridente segurando um tablet em uma sala de reunião, com colegas conversando ao fundo em um ambiente de trabalho colaborativo.

Work doesn’t have to feel like a pressure cooker. Yet for millions of employees, that’s exactly what it’s become.

Tight deadlines. Endless meetings. A growing to-do list with no end in sight. It’s no wonder 83% of workers lose sleep over work stress. But this isn’t just about feeling overwhelmed. Chronic workplace stress drives burnout, sabotages performance, and spills into employees’ personal lives—damaging health, relationships, and morale along the way. And the cost? Billions in lost productivity, low engagement, and sky-high turnover.

HR leaders can’t afford to treat this as a personal issue. Stress is systemic—and it’s shaping the future of work.

Want to turn the tide? Discover how to build a work environment where pressure leads to purpose, not panic. Uncover the tools, systems, and strategies that help employees stay energized, focused, and well—while strengthening your organization from the inside out.

A banner asking

What You'll Learn

  • Workplace stress is widespread in the U.S., with 83% of employees feeling stressed daily and over half experiencing burnout-related effects.
     
  • Chronic stress harms both employees (e.g., heart disease, anxiety, burnout) and organizations (e.g., reduced productivity, turnover, lost innovation).
     
  • Stress can be positive (eustress), acute, or chronic, with each type impacting performance and wellbeing differently.
     
  • Common causes include unclear roles, poor communication, lack of flexibility, and organizational change.
     
  • Employers can reduce stress through audits, tailored initiatives, clear communication, ongoing measurement, and access to wellbeing tools and professional support.

What is Workplace Stress?

Workplace stress is the physical, mental, or emotional strain that occurs when job demands exceed an employee’s ability or resources to cope.

It often stems from tight deadlines, heavy workloads, lack of support, unclear expectations, or poor work-life balance. While some stress can be motivating in short bursts, chronic workplace stress takes a toll on wellbeing, productivity, and retention—especially if it’s unaddressed.

Definition of workplace stress as physical, mental, or emotional strain from job demands exceeding employee coping resources.

The Prevalence of Workplace Stress in the U.S. (2025)

Workplace stress is no longer an occasional challenge — for most Americans, it’s a daily reality and their single largest source of personal strain. This persistent pressure is eroding emotional health, undermining relationships, and reducing day-to-day performance. The numbers paint a clear picture of just how widespread the issue has become.

  • Stress as the Norm: The majority of U.S. employees report feeling stressed at work on a daily basis. Eighty-three percent say they experience stress every day, according to The Global Statistics Report.
     
  • Impact on Mental Wellbeing: Nearly 80% of workers believe workplace stress directly affects their mental health, according to the Headspace 2024 Workforce State of Mind Report. More than half (57%) also report experiencing negative effects often associated with burnout, from exhaustion and reduced motivation to disengagement.
     
  • Spillover into Personal Life: The effects of workplace stress don’t stop at the office door. According to the same Headspace report, 71% of employees say work-related stress has contributed to the end of a personal relationship, such as a breakup or divorce — a reminder that its toll extends well beyond work performance.
     
  • Desire for Support: Seventy-four percent of employees report wanting workplace mental health resources specifically tailored to current events and political anxiety. Failure to provide support is a key driver of attrition across America’s workplaces.
     
  • Low Mood Linked to Work: Seventy-five percent of full-time U.S. employees report experiencing some form of low mood, with the majority tying it to the turbulence of global politics and current events as sources of workplace anxiety.
     
  • Stress-Driven Attrition:52% of U.S. employees have considered leaving their jobs due to mental health concerns related to workplace stress.
     
  • Workplace Stress and Engagement: Gallup data finds 62% of employees feel disengaged—primarily due to workplace stress—whichcosts U.S. companies $483 to 605 billion annually in lost productivity.

For HR leaders, the sheer prevalence of workplace stress makes it more than an employee wellbeing issue — it’s a strategic business challenge. Addressing it requires proactive systems and targeted mental health support to protect not only people but also organizational resilience and performance.

The Types of Workplace Stress: Negative and Positive

Workplace stress doesn't look the same for every employee. Some short-term can boost performance in the short term, while other types of stress can chip away at employee wellbeing. When the pressure becomes too much or goes on for too long, employees can become distressed. Such stress saps motivation and often creates a feeling of anxiety and helplessness. It makes focusing and enjoying work difficult. When left unchecked, negative stress in the workplace can trigger employee burnout and quiet quitting

Three types of workplace stress—eustress, acute, and chronic—ranked from least to most damaging.

Positive Stress (Eustress)

Some people benefit from a certain amount of pressure. Positive stress comes from a challenging or exciting situation, and is usually linked to increased productivity and positive mood, according to a study published by PLos One. It encourages employees to step out of their comfort zones or learn new skills, and makes them feel good while they work toward their goals.

You can recognize eustress among your employees when they:

  • Prepare for a major presentation with visible energy and focus.
  • Take ownership of a high-stakes project that aligns with their skills and goals.
  • Learn a new tool and express curiosity and enthusiasm.
  • Step into a leadership role or a stretch assignment with a proactive mindset.
  • Work under a tight but realistic deadline with strong collaboration and morale. 

In each scenario of positive stress, employees are engaged, slightly stretched, but still in control.

Acute Stress

Sometimes, your employees can be stressed in response to specific situations, such as a tough meeting or unexpected feedback. This is acute stress, a short-term feeling that spikes during high-pressure moments.

Acute stress isn't always harmful. In small doses, it can sharpen your team's focus and push individuals to perform. But when the spikes happen too often without recovery, they can add up and compromise performance and wellbeing.

Chronic Stress

While stress isn't always bad, chronic stress can harm workers' physical and emotional health, which can also affect an organization's success. Here is how long-term stress affects everyone in the workplace, according to the Occupational Safety and Health Administration:
 

Chronic Stress Effects on EmployeesChronic Stress Effects on Employers
Contributes to heart disease, high blood pressure, digestive problems, frequent headaches, and poor sleepReduced productivity, slower work rate, employee disengagement
Can lead to depression, anxiety, irritability, burnout, and emotional exhaustion Increased absenteeism
May show signs of withdrawal, restlessness, emotional outbursts, and risky coping behaviorsLower morale and team cohesion, high turnover
Reduced concentration and clouded thinkingWorkplace safety risks, as fatigued, stressed workers are more likely to overlook safety protocols and cause accidents 

Common Causes of Stress at Work

Several factors can cause workplace stress, but here are some common ones to consider:

  • Unclear roles or unrealistic expectations: When employees' responsibilities are unclear or when they are expected to do too much with too little, they're left overwhelmed and unsure of how to succeed, as reported by the WHO.
     
  • Poor communication and leadership gaps: Inconsistent communication or leaders who seem unavailable or out of touch can create confusion and frustration. In a Grammarly survey, 43% of knowledge workers reported increased workplace stress as a result of poor communication skills.
     
  • Lack of autonomy or flexibility: Micromanagement or rigid schedules can make employees feel stuck and powerless in their roles. For instance, employees with low control over work time show depressive symptoms and psychological distress, as found in a study by Healthcare.
     
  • Organizational change and job insecurity: Mergers and acquisitions often fuel anxiety and distract employees from their day-to-day work. Shifting strategies, such as the adoption of AI or major restructuring, can leave employees uncertain about their roles or future with the company.
State of Work-Life Wellness 2025: Download the free report

Top Signs of Workplace Stress

The signs of work-related stress can be behavioral, physical, or emotional.

Behavioral Red Flags Managers Should Watch For

Workplace stress often reveals itself in subtle behavioral changes before escalating. Watch for behavioral red flags, such as aggressive behaviors, increased sick days or absenteeism, and decline in productivity.

The Physical and Emotional Cost to Employees

The toll of ongoing workplace stress follows employees at home and, eventually shows up in both the body and mind. Recognizing the physical and emotional costs early gives you a chance to intervene before stress escalates to burnout.

Physical Costs of Workplace Stress on EmployeesEmotional Costs of Workplace Stress on Employees
Recurring headachesHeightened anxiety or panic
Digestive issuesDetachment
Fatigue and low energyLoss of motivation
Weakened immune response (getting sick more often)Depression or persistent low mood

The Negative Business Consequences of Workplace Stress  

Stress in the workplace can have far-reaching implications that HR leaders shouldn't overlook. Below are key work stress concerns for employers and why addressing them is critical for business health and employee engagement.

Turnover

High-stress employees are more likely to resign. Men with high stress are about 2.9 times more likely to leave their jobs, while women are about 1.5 times more likely compared to low-stress peers, according to a study published in BMC Public Health.

When employees quit, your organization can face:

  • Increased recruitment costs and reduced funds available for development or engagement activities.
     
  • Loss of institutional knowledge, which can slow project execution.
     
  • Reduced employer brand appeal.
     
  • Lower team stability.

Presenteeism

Stressed employees may physically show up to work, but they aren't entirely focused, so they don’t get much done. Presenteeism quietly drains team performance, often costing your organization more than absenteeism because it's invisible and cumulative. 

Presenteeism Consequence Impact
Reduced productivity and qualityEmployees who continue to work under stress often operate in survival mode, leading to slower task completion and more mistakes.
Prolonged stress and burnoutWithout time to rest or reset, stress compounds, prolonging fatigue and making it harder to bounce back to peak performance.
Erosion of team dynamicsChronic stress can make employees irritable or withdrawn, creating communication breakdowns and loss of collaboration.
Hidden financial costsWhile employees appear present, the output can cost more than absenteeism through missed deadlines or client dissatisfaction.

Presenteeism often links job stress to employees' decision to quit, according to a study published by the International Journal for Equity in Health. Stressed workers who stay on the job despite being disengaged are more likely to leave eventually.

Lost Productivity

Workplace stress costs U.S. companies over $300 billion annually, mainly due to productivity loss through presenteeism and absenteeism, according to research by the University of Massachusetts. Stressed employees may struggle to focus at work and make more errors, leading to missed deadlines and lower-quality output. Over time, the impact of reduced efficiency across teams can strain client relationships and limit organizational growth.

Banner for a free guide on maximizing employee productivity, featuring a smiling employee and a CTA to download.

Poor Morale

A very high 81% of businesses in Britain face low employee morale and productivity, with 27% of leaders attributing this to stress and burnout, according to a Celonis survey. When stress becomes a constant in the workplace, employees feel undervalued and disconnected from the organization's mission. This erosion of enthusiasm and pride in their work can have a wider impact and make it harder to foster a positive workplace culture.

Curious about how much burnout is costing your organization? Start calculating now with our free burnout calculator to see its financial impact.

Reduced Innovation

Long-term workplace stress narrows employees’ focus to short-term survival, leaving limited mental bandwidth for creativity and problem-solving. Teams under pressure may avoid taking risks or experimenting with unconventional ideas, hindering innovation and the organization's ability to adapt to change and seize new opportunities.

How Companies in the United States Manage Workplace Stress

To lower stress at work, many U.S. organizations are adopting structured support that helps employees build their resilience and support mental wellbeing. Here are some key approaches businesses are using.

Offering Tools for Self-Regulation and Resilience

The U.S. workplace stress-management market is growing rapidly, generating $3.9 billion, and is expected to grow by 7% by 2032, based on a Global Market Insights report. Organizations are investing in solutions like Wellhub’s stress-relief tools to help employees manage stress before it exhausts them. Some of these tools include:

  • Mindfulness and meditation apps: Organizations offer employees access to apps like Calm, Headspace, and Meditopia that offer guided meditation to promote focus and emotional balance.
     
  • Sleep optimization tools: Businesses also offer tools like Sleep Cycle to help employees establish better sleep habits, which is crucial for resilience and overall mental clarity.
     
  • Employee-created wellness challenges: Tools like Wellhub’s Challenges let employees design and participate in their own wellbeing initiatives. For instance, teams can create step-count competitions or hydration reminders to boost their engagement by making wellness a fun, shared goal.
     
  • Holistic wellbeing network: With a single subscription to workplace wellbeing platforms, organizations are offering employees access to tools and resources for improving physical fitness, mindfulness, nutrition and sleep.

Offering Flexible Scheduling and Time-Off Policies

When it comes to managing stress, control over time is powerful. Many companies are adopting flexible schedules, compressed workweeks, or results-only work environments (ROWE) to help employees regain a sense of balance. Others are going beyond legal minimums to offer generous PTO and mental health days.

This can be a game-changer. Over half of workers say stress is keeping them up at night, and 47% say it’s degrading their mental wellbeing—the leading cause of emotional health issues today. Giving people room to breathe is one of the most compassionate and cost-effective actions a company can take.

Educating Managers on Mental Health

Even the best programs can fall flat without manager buy-in. That’s why many HR teams are training managers to recognize signs of burnout and respond with empathy. This includes teaching people leaders how to conduct mental health check-ins, point employees to resources, and model psychologically safe behaviors.

Your managers are on the front lines of employee experience. When they’re equipped to lead with emotional intelligence, stress doesn’t spiral—it gets caught and addressed.

Encouraging Daily Micro-Breaks

Some companies are tackling stress in five-minute intervals. And it’s working.

Encouraging regular micro-breaks—like stretching between meetings, standing walks, or “no meeting” blocks—helps employees reset throughout the day. These intentional pauses can improve focus, lower tension, and create a culture that treats wellbeing as a daily practice, not just a perk.

Bonus: When paired with wellbeing tools or platforms like Wellhub, these breaks can be tracked and celebrated through engagement features like gamified streaks and team rewards.

Making Mental Health Affordable

Let’s talk barriers. Cost is the biggest reason employees don’t access therapy. In fact, 36% of those not currently in therapy say expenses are what’s standing in the way.

Companies that cover or subsidize mental health services through Employee Assistance Programs (EAPs), HSA contributions, or partnerships with digital therapy platforms are helping close that gap. And they’re seeing results—51% of employees say counseling is very or extremely important to their wellbeing.

Ad for Wellhub’s “Burnout Battle Plan” featuring a purple booklet image and list of benefits like a 6-step plan, practical burnout tools, and productivity boosts. Purple button says “Download your free action plan.”        Ask ChatGPT

Streamlining Workloads Through Tech and Process Improvements

Stress often stems from one thing: overload. U.S. companies are increasingly investing in workflow automation tools, AI assistants, and project management platforms to help reduce the volume of low-impact, repetitive tasks employees face each day.

When you remove friction from people’s workflows, you return time, energy, and mental space. That makes a huge difference—especially in teams that have been operating lean.

Example: A team using AI to draft internal documents or summarize meetings might save hours each week, giving employees more time for focused, meaningful work.

Training for Role Clarity and Expectation Management

Ambiguity is one of the most overlooked causes of workplace stress. When employees don’t know what’s expected—or have unclear boundaries around responsibilities—it creates chronic tension and second-guessing.

That’s why many organizations are investing in manager training and communication frameworks to ensure expectations are clearly defined and regularly reinforced. Simple steps like updating job descriptions, aligning on goals, or setting up recurring 1:1s can go a long way toward reducing unnecessary stress.

Designing Workspaces That Support Focus

Whether teams are hybrid, in-office, or fully remote, companies are reevaluating the environments in which work happens. And that’s not just about aesthetics—it’s about minimizing distractions and giving employees control.

For example:

  • Offices are introducing quiet zones and phone-free areas.
     
  • Remote-first companies are offering stipends for noise-canceling headphones, ergonomic chairs, and dual monitors.
     
  • Teams are adopting “deep work” hours when Slack and email are paused.

All of these design decisions signal one powerful message: “We respect your brainspace.”

Reducing Meetings—and Making the Rest Better

Ah, meetings. A necessary evil—or a major stress trigger? U.S. employers are rethinking how they meet to give employees more time to focus and less reason to feel drained. Common strategies include:

  • No-Meeting Wednesdays
     
  • 25-minute and 50-minute meetings (instead of 30/60)
     
  • Requiring an agenda for every invite
     
  • Async updates for recurring status meetings

Even a small improvement in meeting quality can create massive stress relief across a team—especially when it leads to fewer interruptions and more autonomy.

How To Reduce and Prevent Workplace Stress: Tips for Employers

Employers can make a difference when it comes to helping workers manage stress. By identifying stressors and rolling out initiatives, organizations can create a healthier, more resilient workforce.

Four-step guide to reduce workplace stress: audit stress, set SMART goals, launch and communicate, and measure impact in real time.

Step 1: Conduct a Comprehensive Workplace Stress Audit

This is where you turn gut feelings into real data. The goal? Understand the who, where, and why behind employee stress.

How to Do It:

  • Run anonymous surveys using tools like Culture Amp or SurveyMonkey. Ask about workload, clarity of expectations, team dynamics, and physical/remote environments.
     
  • Hold listening sessions — both 1:1 and in small groups — where employees can speak candidly.
     
  • Review stress indicators from your HRIS:
    • PTO usage spikes
    • Increased sick days
    • Exit interviews citing burnout
    • Low engagement scores
  • Assess specific areas, such as:

    Stress SourceQuestions to Ask
    Workload“Do you have enough time to do your job well?”
    Manager relationships“Do you feel supported and heard by your direct supervisor?”
    Role clarity“Are your job responsibilities clearly defined?”
    Environment“Is your physical or remote workspace conducive to focus and wellbeing?”

This audit is your springboard. You can’t fix what you can’t see.

Step 2: Set SMART Goals and Align Initiatives

Once you’ve diagnosed stressors, it’s time to act — with intention and clarity.

How to Do It:

  • Use SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound).
     
  • Examples:
    • “Reduce burnout-related PTO usage by 15% over the next six months.”
    • “Increase participation in wellbeing activities by 30% by Q2.”
  • Align initiatives directly to root causes, like:

    Stressor IdentifiedInitiative to Launch
    Unpredictable workloadsPilot a workload planning tool + weekly capacity check-ins
    Lack of manager supportLaunch leadership training on emotional intelligence
    Poor work-life balanceIntroduce Focus Fridays or email blackout hours
    Physical discomfortProvide stipends for ergonomic desks or noise-canceling headphones for remote workers

💡 Pro Tip: Frame these initiatives as tools to help—not mandates to control. Your tone matters.

Step 3: Launch, Communicate, and Celebrate

Rolling out initiatives without communication is like shouting into the void. If your employees don’t know what’s changing — or why — the impact is limited. Communication builds trust, and reinforces that you’re listening.

How to Do It:

  • Create a launch plan that includes:
    • Email announcements
    • Manager toolkits
    • Town hall presentations
  • Repeat your message across channels: Slack, posters, intranet, 1:1s.
     
  • Celebrate early wins to build momentum. For example:
    • “We’ve seen a 10% drop in missed deadlines since launching our workload balance tool!”
    • “120 employees joined our first mindfulness session!”

Step 4: Measure Impact and Adjust in Real Time

Reducing stress isn’t a one-and-done project. It’s a process. Regular check-ins ensure your efforts are working—and help you pivot when needed.

How to Do It:

  • Track metrics, such as:

    MetricWhy It Matters
    AbsenteeismStress often hides in PTO and sick leave data
    Engagement scoresThese reflect how employees feel — and signal burnout early
    Turnover and exit interviewsAre employees leaving because of stress?
    Participation in wellbeing initiativesTells you whether programs are resonating
  • Ask for feedback quarterly, not just annually.
     
  • Adjust your strategy based on what’s working — or not.

Reduce Workplace Stress by Supporting Employee Wellbeing

Stress is draining your workforce. From low morale and presenteeism to rising attrition and burnout, the effects of chronic workplace stress show up in your bottom line. And without targeted support, it only gets worse.

A holistic employee wellbeing program can change that. It gives your people the tools to manage stress before it spirals. With access to mental health support, mindfulness resources, sleep tools, and self-guided wellness challenges, employees build the resilience they need to thrive. 

Speak with a Wellhub Wellbeing Specialist to reduce workplace stress and support long-term employee and business health.

Company healthcare costs drop by up to 35% with Wellhub*

Company healthcare costs drop by up to 35% with Wellhub*

See how we can help you reduce your healthcare spending.

[*] Based on proprietary research comparing healthcare costs of active Wellhub users to non-users.


Share


Wellhub Editorial Team

The Wellhub Editorial Team empowers HR leaders to support worker wellbeing. Our original research, trend analyses, and helpful how-tos provide the tools they need to improve workforce wellness in today's fast-shifting professional landscape.


Subscribe

Our weekly newsletter is your source of education and inspiration to help you create a corporate wellness program that actually matters.

Enter your email

By subscribing you agree Wellhub may use the information to contact you regarding relevant products and services. Questions? See our Privacy Policy.

By subscribing you agree Wellhub may use the information to contact you regarding relevant products and services. Questions? See our Privacy Policy.

Subscribe

Our weekly newsletter is your source of education and inspiration to help you create a corporate wellness program that actually matters.

Enter your email

By subscribing you agree Wellhub may use the information to contact you regarding relevant products and services. Questions? See our Privacy Policy.

By subscribing you agree Wellhub may use the information to contact you regarding relevant products and services. Questions? See our Privacy Policy.

You May Also Like

beneficios laborales que promueven la retención de talento
Organizational Wellness

What Are Fringe Benefits? | Wellhub

Learn about the different types of fringe benefits, their tax implications, and how they can benefit both employers and employees.

Woman at a conference table looking at her cell phone.
Organizational Wellness

Open Enrollment 2025: Key Dates & HR Strategies | Wellhub

Open Enrollment 2025 is around the corner – get key dates, expert HR tips, and proven strategies for a stress-free, high-engagement benefits enrollment season.

Homem sorridente segurando um tablet em uma sala de reunião, com colegas conversando ao fundo em um ambiente de trabalho colaborativo.
Organizational Wellness

Employee Benefits Guide for HR Leaders | Wellhub

Unsure about managing your employee benefits package? Learn how to increase productivity and engagement with this complete guide to employee benefits.