Employee stress ‘costing UK businesses millions each year’

-

Nearly half of employees in the UK technology and professional services industries experience high levels of stress, leading to significant financial and operational risks for businesses, according to new research.

The study, conducted by Walking on Earth (WONE),  a precision health platform for workplace stress, surveyed 1,000 full-time employees across the UK and US, revealing that stress-related issues cost UK employers more than £4 million annually.

The research notes the impact of workplace stress on absenteeism, productivity and workforce stability. Employees experiencing high stress take eight times more sick days than those with lower stress levels and are 3.7 times more likely to resign. Within professional services, 12 percent of employees are at risk of compliance violations and operational failures due to stress-related difficulties.

The findings suggest that many businesses remain reactive in their approach, spending heavily on stress-related health issues rather than addressing the root causes. WONE warns that without intervention, stress will continue to affect retention, performance and financial stability.

HRreview Logo

Get our essential weekday HR news and updates.

This field is for validation purposes and should be left unchanged.
Keep up with the latest in HR...
This field is hidden when viewing the form
This field is hidden when viewing the form
Optin_date
This field is hidden when viewing the form

 

Sector-Specific Stress Challenges

The study found notable differences in stress levels across the finance, legal and technology sectors. Employees in the legal sector reported the highest levels of stress, with 52 percent affected. Legal professionals experiencing high stress were also 1.6 times more likely to feel mentally disengaged than those in finance or technology.

In the technology sector, highly stressed employees were 1.4 times more likely to make mistakes and miss deadlines compared to their peers in other industries. In finance, high-stress employees were 1.5 times more likely to experience workplace hostility, potentially due to frustration and conflict.

Reeva Misra, founder and CEO of WONE, said that businesses need to take stress more seriously.

“For too long, employee stress has been seen as an HR issue rather than a financial and operational risk. But the data is clear: stress is actively undermining workforce stability, driving up costs and impacting business resilience. We’ve reached a tipping point and inaction is no longer an option.”

Stress Among Working Parents in the Legal Sector

Separate findings from the Modern Families Index (MFI) 2025: Legal Sector Report by Bright Horizons Family Solutions show that working parents in the legal industry face higher stress levels than those in other professional services. Over a third (36%) of legal sector parents reported “high” stress, compared to 29 percent across all industries and 23 percent in other professional services.

Only 9 percent of legal sector parents reported low stress levels, significantly lower than the 18 percent recorded in the overall survey. The report also found that 71 percent of legal professionals experienced childcare breakdowns that interfered with work in the past year, compared to 64 percent across all sectors.

Despite these pressures, legal professionals reported feeling more supported by their employers than those in other sectors. Nearly three-quarters (72%) said their organisation cares about their work-home balance and 73 percent felt comfortable discussing family-related issues with their employer.

Employee Stress Mitigation Guide

The research highlights the need for employers to move beyond reactive measures and integrate stress management into business risk strategies.

“Without intervention, businesses will continue to see widespread declines in performance and retention,” Misra said. “The smartest strategy is prevention—embedding stress management into the core of business risk planning, using science-driven solutions that protect both employees and the bottom line.”

The whitepaper’s guide to stress mitigation includes:

  • Offer Preventive Health Support for Individuals
    Providing employees with science-backed tools to recognize and manage stress early can enhance resilience, improve productivity and prevent burnout before it becomes a business risk.
  • Take a Systemic Approach to Organisational Change
    A sustainable stress-risk mitigation strategy requires organizations to address workplace culture, leadership behaviors and operational policies that contribute to employee stress, while also preparing for increasing regulatory expectations.
  • Build a Stress Measurement Dashboard
    Measuring both the drivers and outcomes of employee stress through data-driven insights allows organizations to predict and mitigate stress before it impacts performance and business outcomes.
  • Align People and Risk Functions
    Bridging the gap between HR and Risk functions enables businesses to proactively identify people-related risks, implement targeted solutions and elevate stress resilience as a strategic priority.
  • Take a Holistic Approach
    The most effective organizations move beyond isolated well-being initiatives and create integrated strategies that support employees across physical, mental, financial and social dimensions to drive long-term success.

Alessandra Pacelli is a journalist and author contributing to HRreview, where she covers topics including labour market trends, employment costs, and workplace issues.

Latest news

Lucy Standing: Older workers are back in the centre of the hiring debate – ready to lead the response?

For HR leaders, the argument is simple: the people being filtered out of your hiring process are not past their best.

One in 10 women quit work after pregnancy loss, report finds

Research suggests inconsistent workplace support following pregnancy loss and maternity leave is contributing to resignations and poorer mental wellbeing.

Fear of becoming obsolete grips workers as AI reshapes careers

More than two in five workers worry their skills could become outdated as AI reshapes hiring demands and increases pressure to keep learning.

Ford rehires 350 engineers after AI fails to deliver

Carmaker says veteran engineers have helped improve quality, mentor younger staff and retrain AI systems after automated checks fell short.
- Advertisement -

Low harassment reporting may hide workplace misconduct, employers warned

Low workplace harassment reporting rates may reflect a lack of trust in reporting systems rather than an absence of misconduct, new research suggests.

Jennifer Liston-Smith joins Halo Workplace Nurseries board

HRreview columnist Jennifer Liston-Smith has joined Halo Workplace Nurseries as chief purpose officer to help develop its workplace nursery compliance platform.

Must read

Paul Burrin: Using people science to improve workplace performance

Paul Burrin introduces the term People Science to explain the profound impact HR analytics can have on workplace performance.

Chris Milligan: Talent management in 2019 must rapidly change

Adepto's CEO and founder Chris Miligan discusses the importance of transforming our talent management strategies in 2019.
- Advertisement -

You might also likeRELATED
Recommended to you