Stress isn’t the killer - inaction is: Why business leaders can’t afford to ignore the data any longer

Keywords: stress, leadership, motivation, highperformance, sustainablesuccess

Date: 21 March 2025, WorkLife Digital

Latest research again reinforces that the epidemic of workplace stress is a measurable business risk with profound implications for organisational performance, employee engagement, and financial stability. According to the 2025 WONE Research study, which surveyed over 1,000 employees across the US and UK in technology and professional services industries, stress is not just a personal health challenge - it is a critical business risk that forward-thinking leaders must address now.

The business cost of stress: A financial and operational burden

Stress is costing businesses millions annually. For a 1,000-person organisation, high-stress levels result in an additional $5.3 million in costs every year. This staggering figure arises from multiple interconnected factors including:

Turnover: High-stress employees are 3.6 times more likely to consider leaving their roles, resulting in annual turnover costs of $3.5 million for a 1,000-person company.
Absenteeism: High-stress employees take eight times as many sick days as their low-stress peers, leading to an excess of 2,700 sick days annually. This costs businesses an estimated $778,000 per year.
Presenteeism: Employees who are physically present but mentally disengaged due to stress cost organisations approximately $1 million annually in lost productivity.

These direct costs are compounded by indirect impacts such as diminished productivity, operational errors, and strained workplace relationships. Stress-related mistakes increase operational risks by 11 times, while high-stress environments lead to 7 times greater hostility among colleagues, eroding trust and collaboration.

Stress as a multiplier of business risks

Stress acts as a powerful multiplier of existing challenges within organisations. It exacerbates issues such as poor decision-making, missed deadlines, and compliance failures. In fast-paced industries like technology and finance, where tight deadlines and high stakes are common, stress-induced mistakes can have cascading effects -damaging client relationships, delaying projects, and even triggering regulatory penalties.

Moreover, stress contributes to eight of the top ten most prevalent chronic diseases in the US, including heart disease, diabetes, and depression. This drives up health insurance claims and premiums - a cost that has risen by 29% per employee over the past four years.

The human impact: Engagement and performance at risk

Beyond financial metrics, stress undermines employee engagement and performance. High-stress employees are four times more likely to have low engagement compared to their low-stress counterparts. For a company with 1,000 employees, this means that while only 100 employees might feel disengaged in a low-stress culture, that number skyrockets to 400 in a high-stress environment.

Disengagement manifests as reduced focus, energy, and productivity - key drivers of organisational success. For example:

14% of employees report lack of focus due to high stress
12% experience diminished energy
11% face lowered productivity

These figures highlight the urgent need for leaders to create environments where employees can thrive rather than merely survive.

Why traditional approaches are failing

Despite growing awareness of workplace stress, many organisations still fail to integrate mental wellbeing into their core strategies. While companies invest in perks like gym memberships or wellness apps, these initiatives often fall short because they do not address systemic issues such as excessive workloads or lack of psychological safety.

The WONE study emphasises that fixing toxic workplace behaviours accounts for 60% of the positive impact on wellbeing outcomes. Without addressing root causes - such as poor leadership practices or unrealistic expectations - even the most advanced wellbeing programs will fail.

A call to action: Embedding wellbeing into business strategy

Forward-thinking leaders must recognise that investing in employee wellbeing is not an optional expense but a strategic imperative. The principles of the "Longevity Economy" suggest that prioritising workforce wellbeing today sustains productivity, reduces long-term costs, and ensures resilience in a rapidly evolving labour market.

To effectively mitigate stress as a business risk:

Measure stress and mental health: Use scientifically evidenced survey tools and performance data to identify stress drivers such as workload or lack of manager support
Quantify impact: Link stress-related outcomes (e.g., absenteeism or turnover) to financial metrics to build a compelling business case for action
Adopt data-driven solutions: Implement tailored interventions based on insights from stress measurement tools
Foster collaboration: Encourage cross-functional collaboration between HR and Risk teams to proactively manage stress as part of broader risk mitigation efforts

The competitive advantage of wellbeing investments

Organisations that embed mental wellbeing into their core strategies will gain a competitive edge by building healthier, more resilient workforces. Research shows that when companies invest in employee wellbeing:

Engagement improves.
Productivity increases.
Turnover decreases.
Customer satisfaction rises.

In contrast, organisations that neglect this issue risk falling behind - facing higher costs, reduced morale, and weakened reputations.

Act now or fall behind

The evidence is clear: workplace stress is not just an HR issue; it is a critical business risk with measurable financial and operational consequences. Leaders who continue to view mental wellbeing as a secondary concern will face mounting costs and challenges in retaining top talent. By addressing this epidemic head-on, businesses can unlock the full potential of their workforce while building resilience for the future.

WorkLife Digital is a global mental-wellbeing consultancy driven by the mission to improve the sustainability of businesses. Our psychological wellbeing tool, Worklife Quotient (WL-Q), is modelled on cutting-edge scientific research and provides organisation-wide measurement and intelligence on the mental wellbeing levels and psychological resilience of staff. WL-Q also assesses the impact of organisational practices (i.e. people and culture, leadership styles, organisational purpose and values, social impact) that have a direct influence on staff wellbeing and provides strategic recommendations on addressing risks and promoting strengths.

For more information, get in touch at lisa@worklife.digital

REFERENCES

WONE Research. Risky Business: The hidden cost of stress. 2025

https://resources.walkingonearth.com/stress-risk-whitepaper