Stressed man at work

30 Oct 2025

Optimising Employee Wellbeing Through Strategic Stress Management

Written by Dr Anthony Newton, Counselling Psychologist 


Who is the most ‘chill as a cucumber', person you’ve seen or know personally? Gwyneth Paltrow, Barack Obama, Claudia Winkleman? Guess what, chances are, they get stressed too! Stress is very much a normal part of life. At its best, it can energise us, sharpen our thinking and help us meet challenges. But when stress becomes long term, unmanaged, the result of poor working practices or unsupportive environments, it starts to have the opposite effect. It can drag people down, impacts teams and drain organisations of their most important resource… their people.

 

Why it matters

Workplace stress is a major driver of absence and underperformance:

  • It’s one of the top causes of both absenteeism (taking time off due to stress-related ill health) and presenteeism (being at work but not functioning at full capacity).
  • According to the UK Health and Safety Executive (HSE), over 50% of all working days lost to ill health in 2022–2023 were due to work-related stress, depression or anxiety.

According to the World Health Organisation, workplace wellbeing is now a major public health concern, with growing calls for employers to act strategically in addressing it. Left unaddressed, stress doesn’t just reduce productivity, it shortens lives.

Stress and anxiety often get used interchangeably, but they’re not the same. Stress is typically a response to an external pressure or demand, such as a deadline, workload or interpersonal challenge. Anxiety, on the other hand, is more of an internal state; a persistent feeling of worry, fear or apprehension that may not always be linked to a specific event. 

Left unchecked, stress can develop into anxiety disorders over time. But the good news is that both are manageable and can be worked on, especially if noticed early. 

 

Spotting the signs

The first step to improving mental health it is awareness and understanding. Stress doesn’t always look like someone having a breakdown or appear out of the blue. If we slow down, we will see that for each of us there are individual ‘early warning signs’ that might indicate rising stress levels and decrease in coping ability. This may look like a shift in behaviour or performance, becoming irritable, withdrawing from colleagues, tension in our bodies, staying up later to meet deadlines, forgetting things or making uncharacteristic mistakes. 

Some people turn to unhelpful short-term or emotional numbing coping strategies (like alcohol, avoidance, increase in screen time etc) that feel helpful in the moment but can lead to bigger issues later. Others might internalise it, leading to physical symptoms like headaches, stomach issues or sleep disruption.

You know yourself the best and the key is self-reflection, early intervention and learning to recognise your own early warning signs. If you don’t know how, this is skill that can be learnt. So too is building confidence to act, such as:

  • Taking a break
  • Setting boundaries
  • Asking for help.

 

Stress beyond the desk

One of the biggest predictors of workplace wellbeing is the quality of line management. And yet, many people become managers without ever receiving training in how to lead people well. Managers may be excellent at their job function, but struggle with how to have difficult conversations, recognise signs of distress or support team wellbeing. Manager confidence is a strategic investment. Teaching leaders how to spot stress, hold space for others and foster psychological safety is critical not just for preventing burnout, but for improving engagement and trust.

But not all stressors come from workload or line managers. Some arrive long before the laptop opens. With inflation, high rents and energy bills on the rise, many people are navigating cost-of-living pressure on top of everything else. Financial stress quietly chips away at focus, sleep and general wellbeing. It’s hard to stay motivated when you’re choosing between heating and groceries.

And then there’s the planet. Climate anxiety is creeping into the workplace too, especially among younger staff who are asking hard questions about the future. Add global instability and wars to the mix, and you’ve got a low hum of existential stress that doesn’t exactly boost morale.

Organisations don’t have to solve the world’s problems, but they can offer thoughtful support. From clearer pay structures and access to financial education, to spaces where people can talk honestly about the bigger picture, small steps can ease invisible burdens and show employees they’re not alone.

 

The difference good systems make

Stress isn’t just about personality or resilience. It’s also about systems. If workloads are too high, expectations unclear or recognition absent, stress becomes baked into the culture. Additionally, when difficult behaviours like workplace bullying are left unchecked, the impact on morale, retention and mental health can be severe.

Nearly one in four employees have experienced bullying or harassment at work and most do not report it. That silence adds to stress; damages trust and creates a culture where harm can go unchallenged.

The best workplaces take a strategic view: they create environments where people are stretched but supported. That might include:

  • Regular workload reviews and realistic expectations
  • Access to confidential mental health support
  • Clear anti-bullying policies and visible consequences for poor behaviour
  • Flexible work options that help people manage their lives
  • Encouraging and asking for feedback, not fear, when mistakes happen
  • Inclusion and equity that’s lived, not just laminated in policy

 

When stress helps

Some stress is useful. It helps us prepare, focus and perform. Think about the adrenaline before a presentation or the motivation that comes from a deadline. Psychologists call this ‘eustress’, the kind of stress that drives us forward.

The challenge is knowing where the tipping point is. Too much stress, for too long, without the right recovery time or support, becomes harmful. The goal isn’t to eliminate all stress, but to manage it in a way that works for people and performance.

 

A shared responsibility

Stress management isn’t just about individual habits. It’s about culture. While there are plenty of things individuals can do like improving sleep, setting boundaries or asking for help, real change also requires systemic support too. That means embedding wellbeing into leadership, operations and everyday conversations around mental health.

It starts with recognising that people don’t leave their lives at the door when they log on. Supporting employee wellbeing isn’t a soft extra. It’s a business-critical, human imperative.