Stress has become an unavoidable part of modern life. For many people, the workplace is one of its most significant sources. According to a report from the Occupational Safety and Health Administration (OSHA), workplace stress can negatively affect employee performance, productivity, engagement, and overall well-being. Beyond the emotional toll, chronic stress can also contribute to physical health problems, including an increased risk of cardiovascular disease. In fact, more than 80% of U.S. workers report experiencing workplace stress, and more than half say that work-related stress negatively affects their lives outside the office.

While work can be a source of stress, it can also support mental health through positive workplace cultures, resources, and supportive leadership.

The difference between stress, anxiety, and burnout

At a recent NationaLease meeting, Tracy Levine, MSW, LCSW, of the Naomi Ruth Cohen Institute for Mental Health Education at The Chicago School, discussed the growing impact of workplace stress on employee well-being. She emphasized that when workplace stress continually outweighs support, employees become more vulnerable to mental health issues, like stress. Conversely, a positive job experience can increase confidence and improve overall well-being.

There are different levels of stress.

Stress

Stress is a natural response to challenging situations or life events. It’s a normal part of life and can show up as mental, emotional, and physical symptoms. In many cases, stress is temporary and decreases once the situation improves or the challenge is resolved.

Anxiety

Anxiety goes beyond ordinary stress. It’s characterized by persistent and excessive worry that doesn’t easily go away. Anxiety can interfere with sleep, concentration, energy levels, and daily functioning. Studies indicate that approximately 31% of U.S. adults will experience an anxiety disorder at some point in their lives, making it one of the most common mental health concerns.

Burnout

Burnout often results from prolonged, unmanaged workplace stress. Three primary symptoms characterize it:

• Persistent exhaustion and energy depletion
• Increased mental distance from work, often accompanied by cynicism or negative feelings
• Reduced productivity and effectiveness

Research suggests burnout contributes to approximately 120,000 deaths annually in the U.S. Younger generations are particularly affected, with millennials and Gen Z consistently reporting some of the highest burnout rates among working adults.

Hidden cost of stress on productivity

Many organizations assume that longer hours lead to better results. However, research suggests the opposite may be true. Employee productivity tends to decline significantly after a 50- to 55-hour workweek. Beyond that point, work quality and efficiency often suffer, despite the additional time spent on the job. Fatigue, reduced concentration, and poor decision-making can undermine performance and increase the risk of errors. Sleep deprivation compounds the problem. When employees are exhausted, their ability to focus, solve problems, and collaborate effectively diminishes substantially.

Additionally, many workers report feeling constantly rushed and overwhelmed by competing demands. Over time, this chronic pressure creates a cycle of stress that further reduces productivity while increasing the risk of burnout.

Creating a healthier workplace

Employers can take steps to reduce workplace pressures and support employee well-being.

Encourage regular breaks

One of the most effective ways to combat stress is encouraging employees to take regular breaks throughout the day. Levine notes that employees who take a break approximately every 90 minutes report the following:

• 28% higher levels of focus 
• Nearly 40% greater creative thinking capacity 
• 30% higher levels of health and well-being 

Short periods of rest can help employees recharge, improve concentration, and maintain productivity.

Promote vacations

Vacations are not a luxury; they’re a necessity. Time away from work allows employees to recover mentally and physically. Encourage workers to fully disconnect during time off rather than remaining in contact.

Offer flexible scheduling

Work-life balance remains a top priority, especially among millennial and Gen Z employees. Flexible scheduling options can provide employees with greater control over their personal and professional responsibilities, reducing stress and improving job satisfaction.

Set clear expectations

Uncertainty can be a major source of workplace anxiety. Employees need to understand expectations, goals, and priorities clearly. Leaders should ensure team members have the resources, tools, and training needed to succeed while monitoring workloads to prevent employees from becoming overwhelmed.

Build a supportive culture

Managers play a critical role in recognizing signs of stress and burnout. Training supervisors to identify warning signs, listen to employee concerns, and respond appropriately can make a significant difference. Organizations should also regularly promote available wellness resources, such as counseling services and fitness benefits.

The bottom line

Workplace stress is a reality, but it doesn’t have to define the workplace experience. By recognizing the signs of stress, anxiety, and burnout, organizations can take proactive steps to support their workforce. Companies that prioritize employee well-being typically benefit from increased engagement, higher productivity, stronger retention, and a healthier workplace culture.