The true cost of unmanaged stress: why traditional solutions aren’t enough

Stress in the workplace is inevitable, but how it is managed, or mishandled, can have a significant impact on both employees and businesses. Stress is more than just an occasional issue; it is an ongoing challenge that requires a strategic approach. Research shows that every stressed employee costs a business around 16 productive days per year.¹ These hidden costs accumulate over time, affecting productivity, engagement, and employee retention.

So, why is stress so difficult to tackle effectively in the workplace? This article explores why traditional methods often fall short and how employers can implement more impactful strategies that foster a healthier, more productive workforce.

The cost of unmanaged stress in the workplace

When stress is left unchecked, it can have serious consequences for both employees and businesses as a whole. The immediate impact is often seen in the form of presenteeism, where employees come to work but are not mentally engaged. Research estimates that presenteeism costs UK businesses around £15.1 billion annually.²

However, the true cost goes beyond lost productivity. Chronic workplace stress is linked to higher turnover rates, increased absenteeism, and reduced employee morale. Over time, these factors contribute to a less engaged workforce, ultimately affecting company culture, customer satisfaction, and overall performance.

Why traditional stress management advice fails

We’ve all heard the standard advice for stress management: meditate, use mindfulness apps, or try office yoga. While these techniques can help reduce stress in the moment, they’re often little more than temporary solutions to a much deeper problem. Here’s the uncomfortable truth: these methods treat the symptoms of stress but rarely address the underlying causes, which often lie within the organisational culture, workloads, and systems in place. Without addressing these root causes, only short-term improvements are achieved, and the issues eventually resurface.

The counter-intuitive approach that actually works

What if the key to managing stress in the workplace isn’t trying to eliminate it altogether but optimising it? Here’s how employers can take a smarter, more sustainable approach to stress management:

1. Stop trying to eliminate stress – focus on stress optimisation

The idea that stress should always be minimised is a misconception. In reality, a certain level of stress is essential for performance and productivity. The key is finding the “sweet spot” where stress drives performance rather than drains it. Employers should build systems that allow employees to balance intense work periods with time for recovery and renewal. Consider implementing flexible workloads and schedules that cater to the natural ebb and flow of employee energy throughout the day or week.

Practical tip: introduce “sprints” where employees focus intensely on specific tasks for a defined period, followed by designated recovery times to prevent burnout.

1. Retire the open-door policy; replace it with structured accessibility

While the open-door policy is meant to promote communication, it often leads to constant interruptions, leaving both managers and employees feeling anxious and overwhelmed. Instead of being available 24/7, introduce a more structured approach. Set specific office hours for when employees can bring up concerns, allowing both parties to prepare and engage in more productive discussions.

Practical tip: set “office hours” for leaders or managers, where they’re fully available to address concerns or questions. This creates a sense of certainty and reduces anxiety for both sides.

1. Kill the “always-on” culture

The rise of technology means many employees are connected to work outside office hours, leading to stress and burnout. Late-night emails or weekend Teams messages create unnecessary pressure, and it’s time to put an end to this “always-on” culture. Establish clear boundaries to help employees disconnect from work and recharge.

Practical tip: implement “blackout periods” where non-urgent communications are restricted outside of working hours. This includes emails, messages, or anything that could cause unnecessary stress or disrupt personal time.

The bottom line

Stress management isn’t about eliminating stress entirely, it’s about creating an environment where stress can serve as a motivator rather than a barrier. Your role as an employer isn’t to act as a therapist or fix individual stressors, but to build systems that mitigate unnecessary stress and channel the necessary pressure into productivity.

The most expensive employee isn’t always the one with the highest salary; it’s often the burnt-out high performer who’s mentally drafting their resignation letter as they struggle to keep up with rising stress levels. By implementing these strategies, organisations can prevent burnout, improve employee wellbeing, and boost the bottom line.

Sources

• https://www.centreformentalhealth.org.uk/wp-content/uploads/2024/03/CentreforMH_TheEconomicSocialCostsofMentalIllHealth.pdf
• https://www.deloitte.com/uk/en/services/consulting/research/mental-health-and-employers-refreshing-the-case-for-investment.html