Work-related stress is defined as a harmful reaction people have to undue pressures and demands placed on them at work.
Unfortunately, stress in the workplace isn’t uncommon. According to Health and Safety Executive (HSE) data, an estimated 875,000 employees (opens a new window) suffered work-related stress, depression, or anxiety in 2022/23. In the same year, these factors were responsible for 17.1 million lost working days. What’s more, evidence shows we’ve become more stressed in recent years. Much of this is down to the COVID-19 pandemic, which saw rates of self-reported workplace stress spike. But even now, stress levels at work are still significantly higher than before the pandemic began (opens a new window).
By taking steps to manage stress and prioritise employee wellbeing, companies can not only create a happier and healthier workforce but also improve their bottom line.
Managing stress to reduce risks
By prioritising employee mental health, businesses can create a safer and more productive work environment. This translates to several benefits:
Reduced risk of claims: addressing stress can significantly reduce the risk of errors, missed red flags, and communication breakdowns, leading to fewer liability claims or accidents, and potentially lower insurance premiums.
Improved client service: a happy and healthy workforce is a productive one. Mentally healthy employees are better able to focus, manage complex tasks effectively, and provide superior services to clients.
Enhanced employee retention: high turnover rates are expensive for firms. Investing in mental health can create a more positive work environment, leading to increased employee satisfaction and retention. Having a stable workforce can also help to eliminate continuity issues and minimise project disruption.
Reduced absenteeism: an estimated 33.7 million working days have been lost in the UK in the 2023/24 financial year due to work-related ill health and non-fatal workplace injuries, according to the Health and Safety Executive (opens a new window). Stress, depression or anxiety accounted for almost half of the days lost (16.4 million) during this period.
Key strategies to manage workplace stress include:
Establish a clear policy on stress, and physical and mental health
Give employees support in their day-to-day work
Ensure workloads are manageable (e.g. by dividing up work, or investing in new technologies to drive efficiencies)
Provide a safe environment for people to raise concerns, and address them promptly
Train managers to recognise the signs and symptoms of stress, and to manage conflict within teams
Encourage employees to take regular breaks and make use of their holiday
By putting together a detailed presentation for insurers ahead of their insurance renewal, businesses can demonstrate that they understand the impacts of stress in the workplace. They should also provide evidence of any action taken to manage stress and its impact on employee retention.
A comprehensive approach to wellbeing
Not all workplace stress is work-related. To ensure employees are adequately supported to manage stress, firms may consider investing in comprehensive employee benefit packages (opens a new window). These typically provide mental health support via an Employee Assistance Programme (EAP), often at no cost to employees.
An EAP can be a vital resource for employees to use if feeling overwhelmed and stressed. Access to counselling services can also help and offers support a cross a broad range of topics.
Other benefits that could help manage stress include:
Salary exchange – in return for cycle-to-work schemes, season ticket loans, and increased employer pension contributions
Flexible working – reviewing working patterns may save employees money and valuable time, helping to relieve stress
Buy/sell annual leave – this can give employees more regular breaks to reduce burnout, or additional salary
For further information, please visit the Lockton People Solutions (opens a new window) page.
