A staggering 74% of UK workers are experiencing significant levels of burnout, with many feeling stressed, frustrated with colleagues and struggling to get out of bed on workdays, according to new research.

The findings, published in a 2025 Global Culture Report by employee recognition software firm O.C. Tanner, reveal a growing mental health crisis in the workplace, with nearly half of UK employees exhibiting signs of anxiety and depression.

The study, which surveyed 38,075 employees across 27 countries, including 4,896 respondents from the UK, found that 42% of UK workers meet the criteria for a probable diagnosis of depression, while 39% qualify for a probable diagnosis of anxiety. Many of these employees attribute their mental health struggles directly to their job, citing toxic workplace cultures, excessive workloads and a lack of support from their organisations.

Impact of Workplace Culture on Mental Health

Robert Ordever, European managing director of O.C. Tanner, warned that the scale of the problem was reaching critical levels. “The number of employees experiencing mental health struggles at work is reaching epidemic proportions,” he says. “If organisations don’t address the issues head-on rather than trying to paper over the cracks, the fallout will become harder and harder to manage.”

The research highlights several key workplace factors that contribute to anxiety, depression and burnout. These include a lack of organisational purpose, limited opportunities for professional growth and outdated authoritarian leadership styles. Additionally, the absence of employee recognition and a failure to prioritise wellbeing are exacerbating the crisis.

A Call for Cultural Change

Rather than relying solely on reactive initiatives to support employees already suffering from poor mental health, Ordever stresses the need for a proactive, multi-pronged approach.

“Leaders must take a multi-pronged approach to addressing mental health in the workplace rather than just relying on initiatives that support workers already suffering with poor wellbeing,” he said. “As well as looking to remove the stigma around mental illness, and encouraging colleagues to discuss their struggles openly, business leaders must take an honest look at their workplace culture to see how it can better mitigate mental health issues.”

The report outlines key steps organisations can take to create a healthier workplace environment. They include:

  • Establishing a strong organisational purpose that gives employees a sense of meaning and direction.
  • Developing empathetic and emotionally intelligent leadership.
  • Providing equal opportunities for professional growth and career development.
  • Building a culture where appreciation and wellbeing are prioritised.

When these measures are implemented, the research finds, the risk of burnout drops dramatically. Burnout is 80% less likely in organisations with modern leadership approaches, 83% less likely when employees have opportunities for growth and 87% less likely when a culture of appreciation is embedded in the workplace.

The Role of Employee Recognition

Ordever underscores the power of appreciation in improving mental health outcomes. “Employee recognition can significantly improve mental health outcomes, as feeling appreciated is a powerful emotion that underpins thriving workplaces,” he says.

“Recognition that’s an integrated part of employees’ daily experiences not only reduces the likelihood of burnout, anxiety and depression but also cuts the costs and impacts of staff attrition, absenteeism and presenteeism.”

The findings from the 2025 Global Culture Report make it clear that mental health struggles in the workplace are not just an individual problem but a systemic issue tied to organisational culture. Companies that invest in fostering supportive environments, where employees feel recognised and valued, are not only improving mental wellbeing but also enhancing overall business performance.

The O.C. Tanner Institute’s 2025 Global Culture Report is based on multiple research methods, including interviews, focus groups, cross-sectional surveys and a longitudinal survey. Findings were derived from 27 focus groups involving employees, leaders and HR practitioners from a range of industries and organisational types, both private and public. The report provides critical insights into how workplace culture affects employee wellbeing and productivity.

As businesses continue to navigate the challenges of employee engagement and retention, the message from O.C. Tanner’s research is clear: a positive and appreciative workplace culture is not just a perk but a necessity for mental wellbeing and long-term organisational success.