5 ways to help reduce work-related stress for employees

Workplace stress has reached crisis levels.

Nearly 90% of employees experienced at least one mental health challenge in the past year, with stress topping the list. And 77% of Americans report being stressed by work in the last month.

The numbers tell a clear story: stress is worse than it was even three years ago, and the reasons have shifted. Return-to-office mandates, political uncertainty, financial pressure and eroding trust in leadership have added new layers to the familiar culprits of unrealistic deadlines and heavy workloads.

Staff morale suffers. Absenteeism goes up while retention goes down. Productivity declines. And the costs keep climbing—workplace stress now costs U.S. companies $300 billion annually due to absenteeism, reduced productivity and turnover.

Employers have a responsibility to create safe and healthy workplaces. Stress Awareness Month (celebrated in April) is a good time to take stock of what's causing stress for your teams and what you can do about it.

The impact of work-related stress

Stress leads to anxiety, depression, heart disease and sleep disorders. It affects people's ability to focus, make decisions and complete tasks. The physical toll is real: 77% of employees say workplace stress affects their physical health, with many citing fatigue, sleep problems and chronic illness.

Younger workers are hitting peak burnout at age 25—17 years earlier than the average American, who peaks at 42. Gen Z and Millennials report the highest levels of anxiety and job dissatisfaction, and they're leaving because of it: 60% of Gen Z employees and 55% of Millennials plan to switch jobs within the next year, with workplace stress being a key factor.

The good news: organizations that support employee mental health see tangible results. Employees who work at companies that support their mental health are twice as likely to report no burnout or depression. When you address stress, you create healthier, more productive work environments that help with both retention and recruitment.

What's driving stress in 2026

The stressors have evolved. People still cite heavy workloads and unrealistic deadlines as top sources of stress. But new pressures have emerged:

Return-to-office mandates are creating tension. 8 in 10 companies lost talent due to RTO mandates, yet nearly half still require staff to be in the office 4 to 5 days per week. The disconnect between what employees want (64% prefer remote or hybrid roles) and what many companies are requiring is causing stress and driving turnover.

External uncertainty is taking a toll. U.S. politics, global events and personal finances rank as top stressors for employees. You can't control world events, but you can control how you support people through them.

Trust in leadership has eroded after years of layoffs and uncertainty. Only 38% of employees say their manager helps create a low-stress environment. When trust is low, every change feels like a threat, and every decision feels suspect.

People want stability. The top driver of employee engagement in 2025 shifted from "feeling valued" to "change is handled effectively in my company," followed by "confidence in senior leadership." When the world feels unstable, employees look for stability at work. They want leaders who can navigate uncertainty and companies that won't fall apart when things get hard.

5 ways to help reduce work-related stress for employees

Take practical steps to reduce stress for employees and create more supportive work environments.

1. Encourage employees to speak up

Employees need to know that help is available if they're feeling overwhelmed. Many won't ask for support unless they know it's safe to do so.

Make it clear that you want to hear when stress is affecting someone's work or well-being. Train managers to recognize signs of stress and burnout, and to have conversations about it without judgment. Younger workers expect leaders to understand mental health challenges—and they'll leave if managers can't meet them there.

Provide access to confidential support services like Employee Assistance Programs (EAPs) that offer counseling and mental health resources. Promote the contact details in communal areas, in onboarding materials, and during one-on-ones so people know where to turn.

2. Prioritize employee well-being

Healthy habits help reduce stress, and you can make it easier for people to build them into their workday.

Encourage employees to take regular breaks and actually step away from their desks at lunch. You can organize lunchtime walks or exercise classes to make it more social. Exercise releases endorphins, boosts mood, and helps people manage stress better.

Offer resources for yoga, meditation, or mindfulness. These practices help people disconnect from work stress and reset during the day. The goal is to normalize rest and recovery as part of productivity, not something people do in spite of their workload.

In fact, 70% of employees believe better work/life balance would significantly reduce stress. But only 29% feel they're actually thriving at work. The gap is real, and closing it requires more than lip service.

3. Promote healthy work/life balance

Work/life balance matters more now than ever. Flexible working options help employees manage their lives in ways that reduce stress and improve focus.

Let people work the hours that fit their lives and from the locations where they're most productive. This might mean flexibility around school drop-offs, medical appointments, or peak focus times.

Model the behavior from the top. If senior leaders leave on time, take lunch breaks, and respect boundaries, it gives everyone else permission to do the same. Culture is shaped by what leaders do, not what they say.

If you're implementing office requirements, think carefully about how and why. One-size-fits-all mandates that ignore individual circumstances create resentment and drive people away. When in-office time is necessary, be clear about the purpose and involve employees in designing what makes sense for their work.

4. Improve communication and transparency

Uncertainty creates stress. When people don't know what's happening or what's expected of them, they fill in the blanks with worst-case scenarios.

Keep employees informed about what's happening in the company and what's expected of them. Clear communication reduces the anxiety that comes from not knowing. Be transparent about changes before they happen, explain the reasoning behind decisions, and give people time to adjust.

Encourage feedback across the organization. 360-degree feedback helps build understanding and trust across teams. When people feel heard and see their input reflected in decisions, stress goes down.

Train managers to communicate clearly and consistently, especially during change. Unclear expectations are a major driver of burnout. People need to know what success looks like, how their work contributes to larger goals, and when priorities shift.

5. Support flexibility around work location

Where people work will keep coming up. What you can control is how you approach it.

Research shows hybrid workers report higher stress (42%) than those working fully remote or fully onsite (39%). The stress often comes from unclear expectations, inconsistent enforcement of policies and feeling caught between two worlds.

If your organization requires in-office time, make it purposeful. Design office days around collaboration, learning, and connection—the things that actually benefit from being face-to-face. Don't require people to commute just to sit on video calls all day.

Listen to what employees need. Some thrive with structure and routine in an office. Others do their best work remotely with fewer interruptions. When possible, let people choose based on their role, work style, and life circumstances.

Be consistent in how you apply policies. Inconsistency breeds resentment and stress. If the expectation is three days in the office, make sure it's enforced fairly across teams and that managers have the support they need to have those conversations.

Are you looking for ways to reduce stress throughout your company?

We know you're busy. That's why we designed Electives to make it easier to deliver high-quality learning on topics that matter—like stress management, building trust and helping managers support their teams through uncertainty.

Our live learning approach brings people together to learn practical skills they can use immediately. We handle the logistics, curation, and measurement so you can focus on building the capability your organization needs.

Discover how Electives can help you support employee well-being and build the skills that reduce stress at work.

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