In our first blog, we explored how mental health can impact employee performance.
In Blog 2, we looked at some of the common workplace stressors that can affect employee wellbeing, from excessive workloads and poor communication to lack of control and organisational change.
But what happens when those issues aren't addressed? The impact isn't always obvious.
Workplace stress doesn't necessarily result in someone taking time off work. In many cases, people continue working while struggling with their mental health.
And that is where some of the most significant costs can become hidden.
The visible cost: absence
Employee absence is one of the clearest indicators that something may be wrong. When people are experiencing sustained stress or poor mental health, they may eventually need time away from work.
For the individual, that absence may be necessary to recover.
For the organisation, however, absence can create additional pressure across the business.
Work may need to be redistributed. Colleagues may have to take on additional responsibilities. Managers may spend more time managing absence and finding cover. Projects can be delayed and customer service may be affected.
And there is a potential cycle to consider:
One person's absence can increase pressure on the people who remain, potentially creating further stress.
This is why absence should not simply be viewed as an HR metric. Patterns in absence can provide valuable insight into the health of an organisation.
The hidden cost: presenteeism
Absence is visible. Presenteeism is not.
Presenteeism occurs when someone is physically at work but is unable to perform at their usual level because they are unwell, experiencing stress or struggling with their mental wellbeing.
They may attend meetings, respond to emails and complete their normal working day. But concentration may be reduced. Decisions may take longer. Mistakes may increase. Creativity and problem-solving may suffer.
And because the person is still at work, the issue can easily go unnoticed.
For organisations, this makes presenteeism particularly difficult to identify and address.
It can also be difficult for employees themselves. Someone may feel pressure to continue working despite recognising that they aren't functioning at their best.
A culture where being busy is consistently rewarded can unintentionally reinforce this behaviour.
Productivity isn't just about output
When we talk about productivity, it's tempting to think about how much work is being completed.
But sustainable productivity is about more than output.
It is also about:
➢Quality of work
➢Concentration and decision making
➢Creativity and problem solving
➢Collaboration
➢Employee engagement
➢Sustainable workloads
➢The ability to maintain performance overtime
An employee who is constantly operating under excessive pressure may continue to deliver in the short term. But if that pressure is sustained, performance can eventually deteriorate.
This is why organisations need to consider the relationship between wellbeing and sustainable performance, rather than treating them as separate priorities.
The impact extends beyond the individual
The consequences of workplace stress rarely stop with the person experiencing it. When one employee is struggling, their workload may be absorbed by colleagues.
When several people in a team are under pressure, managers may find themselves spending more time dealing with problems and less time focusing on strategic priorities.
When stress becomes widespread, it can influence team morale, relationships, engagement and retention.
Over time, this can create a wider organisational cycle:
Excessive pressure → reduced wellbeing → lower performance → increased pressure → absence or turnover →greater pressure on remaining employees
Breaking that cycle requires organisations to recognise the warning signs before they become more serious.
Look beyond the numbers
Absence, turnover and engagement data can tell an organisation something is happening.
But they don't necessarily tell you why. A rise in absence might be connected to workload, management practices, organisational change or wider cultural issues. A fall in engagement might have multiple causes.
High turnover in one area of the organisation may be telling you something that isn't visible in the overall organisational figures. This is why data needs context.
Organisations need to bring different sources of information together and listen to what their people are telling them.
The goal isn't simply to measure how many people are absent.
It's to understand the conditions that may be contributing to the problem.
From reacting to preventing
By the time workplace stress results in long-term absence or significant performance issues, the organisation may already be dealing with the consequences.
A more preventative approach asks different questions:
Where are pressure levels increasing?
Which teams or groups may be most affected?
Are workloads sustainable?
Do employees feel supported by their managers?
Are people comfortable raising concerns before they reach breaking point?
Are existing wellbeing initiatives addressing the underlying causes of stress?
These questions can help organisations move from reacting to problems to identifying and addressing risks earlier.
Turning insight into action
There is no single solution to workplace stress. Every organisation has different people, pressures, cultures and working environments.
What matters is understanding what is happening within your organisation and using that insight to make informed decisions.
At Pulse Point, we help organisations assess how effectively they are supporting the mental health and wellbeing of their people.
By identifying strengths, gaps and areas for improvement, Pulse Point gives leaders a clearer view of where organisational action may be needed.
Because the cost of workplace stress isn't always visible. Sometimes it's found in the absence figures.
Sometimes it's hidden in reduced productivity.
And sometimes it's the employee who is still at their desk, doing their best to keep going.
The earlier organisations understand the causes, the greater the opportunity to act.
Coming next in the series
Blog 4: From Wellbeing Initiatives to Wellbeing Impact – Are Your Efforts Actually Working?
Most organisations offer some form of wellbeing support. But how do you know whether it is making a meaningful difference? In the next blog, we'll look at the difference between having wellbeing initiatives and understanding their effectiveness.
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