Highly stressed employees cost firms more than £4M a year

New research surveying 1,000 full-time employees in the UK and US technology and professional services industries has found that nearly half of the workforce (45%) is highly stressed, experiencing stress frequently or always.

This is having a significant impact on business risks – driving up costs, reducing productivity, and putting workforce stability at risk.

The research, conducted by Walking on Earth (WONE), a leader in workplace stress management, revealed that high employee stress costs UK businesses more than £4 million a year. Amid rising operational costs and shifting market conditions, the findings make it clear: stress is not just a wellbeing concern – it is a measurable business risk contributing to lost working days, rising costs, and compliance failures.

The research looked at typically high-pay, high-intensity environments across the finance, legal, and technology sectors to study the link between stress severity and business risk. The headline findings were stark:

  • Nearly half of the workforce (45%) is highly stressed
  • High stress is measurable business risk and costs UK employers £4,355,613  annually (£9,679 per employee per year)
  • Absenteeism costs UK businesses £1,398 per employee per year, while presenteeism is an even higher cost at £1,917 per employee
  • Highly stressed employees take 8x more sick days as those who reported low-stress
  • Highly stressed employees are 3.7x more likely to resign than low-stress employees
  • Within professional services, 12% of the entire workforce is at risk of compliance violations and operational failures as a result of high-stress

There were also some interesting nuances between the sectors. The research found that those working within the legal industry had the highest stress levels, with 52% of employees affected. High-stress employees in the legal sector are also 1.6x more likely to feel mentally disengaged than those employed in finance or technology. Meanwhile, employees facing high stress within the technology industry were 1.4x more likely to make mistakes and miss deadlines than their peers in other sectors. One of the key findings in the research was around the impact of stress on relationships at work. The data revealed that those working in finance harboured 1.5x more hostile feelings towards their colleagues due to high stress, likely because of high levels of frustration and conflict.

Despite the scale of the problem, many businesses remain stuck in a reactive cycle – spending heavily on addressing stress-related health issues after they arise, rather than tackling the root cause. The findings highlight an urgent need for stress management to be integrated into corporate risk mitigation strategies, preventing workforce loss and safeguarding business performance.

Commenting on the research, Reeva Misra, Founder and CEO of WONE, said: “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.

"Without intervention, businesses will continue to see widespread declines in performance and retention. 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."

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