Workplace stress is escalating worldwide, and failure to address it could lead to lasting consequences for organisations, a new study has found.
According to the latest Psychological Safety Study by employee wellbeing solutions provider Workplace Options (WPO), employees across 18 countries — including the UK — are struggling with increasing performance pressure, workplace conflict and deteriorating mental wellbeing.
The study, which analysed real, anonymised conversations between employees and clinicians, found that workplace stress is now the top concern in nearly every country surveyed. The UK workforce is particularly affected, with stress, workplace conflict and performance pressure ranking as the most common challenges.
Why Psychological Safety Is Now a Business Necessity
Employee engagement and productivity are closely tied to psychological safety — the ability to speak up, ask for support and express concerns without fear of negative consequences. Yet many workplaces still lack the structures to protect employee wellbeing, leading to higher turnover, declining productivity and disengaged teams.
The 2025 study revealed that workplace challenges have evolved significantly:
- In 2024, UK employees’ biggest concerns were lack of recognition, work-life balance, and daily work pressures.
- In 2025, these concerns have shifted to job performance, unclear objectives, and persisting work-life balance issues.
The findings suggest that employees are not just overworked but also struggling with uncertainty, miscommunication and a lack of support from leadership.
Workplace Options CEO Alan King warned that businesses must act now. “Company leaders and people managers face an urgent question: Will they create a psychologically safe and engaged workforce, or will they perpetuate a culture of stress and instability? Psychological safety … is no longer just a workplace perk — it is a business necessity.”
What Workplace Stress Looks Like Across the Globe
The study highlights how workplace stress manifests in different regions. While workplace stress ranks as the top issue in nearly every country, certain regions have additional challenges:
- China, France and Japan report high levels of workplace conflict.
- Japan is also seeing increased workplace bullying and harassment.
- The UK, US and Canada all report a rise in performance pressure alongside stress and conflict.
- Australia, Belgium and the UAE show a high number of employees facing career change or transition challenges.
As workplace wellbeing continues to decline, experts say the burden falls on business leaders to create clearer expectations, better communication and a culture where employees feel supported.
The Cost of Ignoring Psychological Safety
When organisations fail to address psychological safety, the consequences can be far-reaching:
- Higher employee turnover – Workers leave in search of organisations that prioritise wellbeing.
- Lower productivity – Stress and unresolved conflicts lead to disengagement.
- Poor morale and retention – Employees who feel unheard are less likely to stay committed.
- Increased risk of burnout – Employees, especially those in high-pressure roles, struggle to meet expectations.
Dr. Kennette Thigpen Harris, a corporate wellbeing expert at WPO, sees this as a critical moment for businesses. “Our study is a wake-up call,” she said. “If organisations do not prioritise psychological safety now, the next generation will enter a workforce defined by stress, conflict and disengagement.”
Dr. Harris added that as “Millennials have entered decision-making roles, the opportunity to build a workplace culture defined by trust, respect, collaboration and wellbeing has never been more urgent.”
What Can Leaders Do to Reverse the Trend?
Workplace stress is not inevitable. Companies that take proactive steps to foster psychological safety can improve engagement, morale and performance. Experts recommend:
- Encouraging open communication – Employees should feel safe raising concerns without fear of retaliation.
- Setting clear objectives – Uncertainty fuels stress; clear expectations help employees feel more secure.
- Improving work-life balance – Flexible working, mental health resources, and realistic workloads reduce burnout.
- Investing in leadership training – Managers play a crucial role in fostering supportive workplace cultures.
- Addressing conflict early – Companies must create processes for resolving disputes before they escalate.
