Managing Stress In The Workplace

How SMEs Can Recognise, Manage And Support Employees Experiencing Work-Related Stress

Work-related stress is one of the most common causes of sickness absence in UK workplaces. If left unmanaged, it can affect an employee’s health, attendance, performance and wellbeing, whilst also impacting productivity, morale and staff retention.

Employers are not expected to eliminate workplace stress altogether. However, they do have a duty to take reasonable steps to protect employees’ health and safety, identify potential causes of work-related stress and respond appropriately when concerns arise.

Early intervention is often the key to preventing stress-related issues from developing into long-term sickness absence. Open communication, supportive management and timely action can often resolve problems before they become more serious.

This guide explains how employers can recognise the signs of work-related stress, understand their legal responsibilities and take practical steps to support employees whilst protecting the needs of the business.

What Is Workplace Stress?

Stress is the adverse reaction people have to excessive pressures or demands placed upon them. Whilst some pressure at work can be positive and help employees stay motivated, prolonged or excessive pressure that exceeds an individual’s ability to cope can lead to stress.

Workplace stress may be caused by factors within the workplace, such as excessive workloads, unrealistic deadlines, poor management relationships or organisational change. However, stress can also arise from personal circumstances outside work, including family responsibilities, financial difficulties or health concerns. In many cases, work-related and personal pressures combine to affect an employee’s wellbeing.

Everyone experiences stress differently. A situation that one employee manages comfortably may have a significant impact on another. Employers should therefore avoid making assumptions about how individuals will respond to particular pressures and instead consider each situation on its own merits.

It is also important to recognise that experiencing stress does not automatically mean an employee has a mental health condition. Whilst prolonged stress can contribute to conditions such as anxiety or depression, many employees experiencing stress will recover quickly once the underlying causes are identified and appropriate support is provided.

Common Signs An Employee May Be Struggling

Employees experiencing work-related stress do not always tell their manager they are struggling. In many cases, the early warning signs are changes in attendance, behaviour or performance rather than a direct conversation about stress. Recognising these signs early gives employers the opportunity to offer support before the situation develops into long-term sickness absence.

Common indicators that an employee may be struggling include:

• Increased sickness absence or frequent short-term absences.
• A noticeable decline in performance or productivity.
• Difficulty concentrating or making decisions.
• Missed deadlines or reduced quality of work.
• Changes in behaviour, mood or attitude.
• Irritability, frustration or becoming unusually emotional.
• Withdrawal from colleagues or avoiding social interaction.
• Loss of confidence or reluctance to take on normal responsibilities.
• Working excessive hours or finding it difficult to switch off from work.
• Appearing tired, overwhelmed or lacking motivation.

These signs do not necessarily mean an employee is experiencing stress, and they may have other causes. However, they should prompt managers to have a supportive conversation with the employee rather than making assumptions or waiting for the situation to deteriorate.

Common Causes Of Workplace Stress

Workplace stress can arise for many different reasons and is often the result of several factors rather than a single event. Whilst some causes are directly related to work, personal circumstances outside the workplace can also affect an employee’s ability to cope with day-to-day pressures.

Common causes of workplace stress include:

• Excessive workload: unrealistic deadlines, insufficient resources or consistently high workloads.
• Poor communication: unclear expectations, lack of information or uncertainty about priorities.
• Relationship problems: conflict with colleagues, managers or customers.
• Lack of support: insufficient training, guidance or managerial support to carry out the role effectively.
• Organisational change: restructures, redundancies, new management, changes to roles or uncertainty about the future.
• Personal circumstances: financial pressures, caring responsibilities, relationship difficulties or health concerns that affect an employee’s wellbeing at work.
• Bullying, harassment or inappropriate behaviour: behaviour that undermines an employee’s dignity, confidence or wellbeing should always be addressed promptly.

Managers should avoid assuming that stress is caused solely by work or solely by personal circumstances. In many cases, pressures inside and outside the workplace combine, making it more difficult for an employee to cope. A supportive discussion will often help identify the factors involved and the most appropriate way to provide support.

What Employers Should Do

If you believe an employee is struggling with stress, don’t wait for the situation to resolve itself. Early intervention is often the most effective way to prevent stress-related absence and maintain a positive working relationship.

A practical approach is to:

• Arrange a private conversation with the employee as soon as concerns arise.
• Listen without judgement and encourage the employee to explain how they are feeling and whether work is contributing to the problem.
• Explore the underlying causes rather than making assumptions. There may be work-related, personal or combined factors affecting the employee.
• Review workloads, deadlines and priorities to identify whether temporary changes could help reduce pressure.
• Consider practical support, such as additional training, temporary adjustments, flexible working, a phased return or referral to an Employee Assistance Programme or Occupational Health where appropriate.
• Agree an action plan setting out what support will be provided, who is responsible for each action and when progress will be reviewed.
• Keep the situation under review by arranging regular follow-up discussions and adapting the support if circumstances change.

Not every employee experiencing stress will require formal intervention. In many cases, a supportive conversation and relatively small workplace adjustments can make a significant difference. The key is to identify concerns early, respond appropriately and continue to monitor the situation.

When Occupational Health May Help

Whilst many cases of workplace stress can be managed through supportive conversations and practical workplace adjustments, there are occasions when employers need independent medical advice. An Occupational Health referral can help employers understand how an employee’s health is affecting their ability to work and what support may be appropriate.

An Occupational Health referral may be particularly helpful where:

• The employee has been absent for a prolonged period due to stress or another health condition.
• You need independent medical advice about the employee’s fitness for work.
• You are considering workplace adjustments or a phased return to work.
• There are concerns that the employee’s condition may amount to a disability under the Equality Act 2010.
• Stress is affecting the employee’s attendance, performance or ability to carry out their role safely.
• You are considering formal capability procedures and require medical evidence before making decisions.

Occupational Health professionals provide medical advice and recommendations, but management decisions remain the responsibility of the employer. Understanding when to seek Occupational Health advice and how to apply the recommendations can make a significant difference to the outcome for both the employee and the business.

If you are unsure whether an Occupational Health referral is appropriate, read our guide to Occupational Health Referrals For SMEs, which explains the referral process, how to choose the right provider and how Kea HR can support you before, during and after the assessment.

Reasonable Adjustments

Employees experiencing work-related stress do not automatically qualify for reasonable adjustments. However, where an employee has a mental health condition that amounts to a disability under the Equality Act 2010, employers have a legal duty to consider reasonable adjustments to help remove or reduce workplace disadvantages.

Reasonable adjustments will depend on the individual circumstances and should be tailored to the employee’s role, the nature of their condition and the needs of the business. In many cases, relatively simple changes can make a significant difference.

Examples of reasonable adjustments may include:

• Temporary changes to duties or responsibilities.
• Adjustments to working hours or flexible working arrangements.
• A phased return to work following sickness absence.
• Temporary reduction or redistribution of workload.
• Additional supervision, support or regular wellbeing meetings.
• Changes to the working environment where appropriate.

Not every adjustment needs to be permanent. Many employers agree temporary adjustments whilst an employee recovers, reviewing the arrangements regularly to ensure they remain appropriate and effective.

Where there is uncertainty about an employee’s condition or the adjustments that may be appropriate, an Occupational Health assessment can provide valuable independent medical advice to support decision-making.

For more information, read our guide to Considering Reasonable Adjustments In An SME.

Returning To Work After Stress-Related Absence

A successful return to work after stress-related absence requires more than simply welcoming the employee back. Employers should take time to understand whether the factors that contributed to the absence have been addressed and what support may be needed to help the employee settle back into work.

A return-to-work meeting provides an opportunity to discuss the employee’s recovery, identify any ongoing concerns and agree how the return will be managed. This conversation should be supportive, confidential and focused on helping the employee return to work safely and successfully.

Depending on the circumstances, employers may wish to consider:

• A phased return to work, gradually increasing hours or duties over an agreed period.
• Temporary adjustments to workload, responsibilities or working patterns.
• Regular review meetings to discuss progress and identify any further support that may be required.
• Maintaining open communication so concerns can be raised before they develop into further absence.
• Reviewing any Occupational Health recommendations or agreed workplace adjustments.

Every employee’s return will be different. Some employees may resume their normal duties immediately, whilst others may benefit from temporary support before returning to their full role. Regular reviews help ensure that any support remains appropriate and can be adjusted as the employee’s confidence and wellbeing improve.

For more guidance, read our article on Return-to-Work Meetings, which explains how to conduct effective return-to-work discussions and support employees following sickness absence.

Return Ro Work Meeting Toolkit
If you regularly manage sickness absence, our Return-to-Work Meeting Toolkit provides practical guidance, meeting templates and supporting documentation to help managers conduct effective return-to-work meetings.

Common Mistakes Employers Make

Work-related stress can develop gradually, making it easy for employers to overlook the early warning signs. Taking a proactive and supportive approach can often prevent problems escalating into long-term sickness absence or formal employee relations issues. Common mistakes include:

• Ignoring early warning signs. Changes in behaviour, attendance or performance should prompt a supportive conversation rather than being dismissed as a temporary problem.
• Assuming stress is “part of the job”. Whilst some workplace pressure is normal, excessive or prolonged pressure that affects an employee’s health should not be accepted as inevitable.
• Waiting until the employee goes off sick. Early intervention and open communication can often resolve concerns before they result in stress-related absence.
• Failing to communicate. Avoiding difficult conversations or assuming an employee will ask for help may allow problems to become more serious.
• Confusing stress with misconduct or poor performance. Before taking formal action, employers should consider whether an underlying health issue may be contributing to changes in behaviour or performance.
• Not reviewing workload or working arrangements. Simple changes to priorities, responsibilities or deadlines may help reduce unnecessary pressure and support the employee’s wellbeing.
• Failing to seek medical advice when appropriate. Where stress results in prolonged absence, repeated sickness absence or concerns about an employee’s ability to carry out their role, an Occupational Health referral can provide valuable independent advice.
• Treating every employee the same. Employees respond to stress differently. Avoid a “one size fits all” approach and consider each situation on its own merits.

Employers are not expected to eliminate workplace stress, but they should take concerns seriously, respond promptly and take reasonable steps to support employees where appropriate. A supportive and proactive approach benefits both the individual and the business.

How Kea HR Can Help

Managing workplace stress requires a balanced approach that supports employee wellbeing whilst ensuring the business continues to operate effectively. Whether you are concerned about an employee’s wellbeing, managing stress-related sickness absence or considering formal capability procedures, Kea HR provides practical, commercially focused HR advice tailored to your business.

We can help you:

• Identify and manage work-related stress at an early stage.
• Support managers in having sensitive wellbeing conversations.
• Develop action plans and review workloads to help reduce workplace stress.
• Manage stress-related sickness absence and return-to-work arrangements.
• Arrange and manage Occupational Health referrals where independent medical advice is required.
• Advise on reasonable adjustments and Equality Act considerations.
• Support capability procedures where an employee’s health affects their ability to carry out their role.
• Help resolve workplace conflict that may be contributing to stress.
• Advise on Employee Assistance Programmes and other wellbeing initiatives.

Our aim is to help employers deal with stress-related issues proactively, reducing the risk of long-term absence, improving employee wellbeing and ensuring decisions are fair, practical and legally compliant.

Related Services

• Attendance Management Support
• Occupational Health Referrals For SMEs
• Capability Dismissal Support
• Workplace Conflict Support
• Employee Assistance Programmes

Related Resources

Articles

• When Should SMEs Use Occupational Health?
• Considering Reasonable Adjustments
• Employee Assistance Programmes For SMEs
• Absence Management Procedures
• Managing Difficult Employee Conversations

Downloads

• Return to Work Interview Form.
• Welfare Meeting Agenda.

Most stress-related issues can be managed successfully when employers recognise concerns early, communicate openly and provide appropriate support. Knowing when to seek additional advice, including Occupational Health, can help both the employee and the business achieve the best possible outcome.

Have a question about Occupational Health or managing employee health issues? Speak directly with our CIPD-qualified HR expert with 30+ years’ experience.

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