How HR Can Reverse Rising Workplace Stress and Build a Happier Workforce

Workplace stress is surging. Remote work, economic instability, and relentless deadlines have created a storm of pressure for employees across industries.

For HR professionals, this is more than a worrying trend, it’s a business challenge. A stressed, disengaged workforce affects everything from productivity to profitability. So, how can organizations turn the tide?

In this blog, I’ll explore why happiness at work is vital for commercial success, and share practical strategies HR leaders can use to boost employee wellbeing, based on my book Happy Economics and the latest data from WorkL.

Why Workplace Happiness Should Be a Priority

I’ve spent more than four decades in business leadership, and the link between workplace happiness and performance has never been clearer. That’s why I launched WorkL in 2017, to help organizations around the world measure and improve workplace happiness through engagement surveys.

Today, we support over 1,000 businesses, and employees from more than 100,000 organizations have completed our Happy at Work Test. We also power the Best Places Awards around the world, including The Sunday Times Best Places to Work to help recognise best performing organizations.

The evidence is strong; happier employees are more engaged, less likely to take time off, and more productive. Wellbeing is no longer a “nice to have”, it’s a business necessity.

What the Data Tells Us

Right now, the global workplace happiness score stands at 70%. The biggest gap is between managers (74%) and non-managers (66%), showing that organizations need to pay closer attention to frontline teams.

Our latest Wellbeing Risk data is also revealing. One in three employees worldwide faces a wellbeing risk, with disabled employees being the most affected. These numbers have remained steady over the past year and highlight the urgent need for inclusive wellbeing strategies.

How to Measure and Improve Wellbeing

Employee surveys are a powerful way to understand how your workforce is feeling. At WorkL, our surveys are anonymous, offer instant results to employees, and provide actionable insights to employers. They combine quantitative ratings with open-ended feedback, giving a fuller picture of what's working, and what isn’t.

Once you’ve gathered the data, ask yourself:

• Are the results what I expected?
• Which findings surprise or concern me?
• What issues are emerging around wellbeing?
• Is there clear support for physical, emotional, and financial wellbeing?
• Do absence trends suggest underlying stress?

You should also review your organization’s wellbeing offerings. Are gym memberships, healthy food, or flexible schedules in place? Are employee assistance programs being used and promoted? Most importantly, are you, along with line managers, equipped to support employee wellbeing confidently and compassionately?

Building a Culture That Supports Workplace Happiness

Open, honest conversations are critical. Whether through one-to-ones or team meetings, create space for employees to share their experiences without fear of judgment. Listen actively, ask clarifying questions, and make sure to follow through on what you hear. A feedback loop without action quickly undermines trust.

But trust and happiness don’t just flourish in isolated moments, they thrive in environments where communication is intentional, inclusive, and consistent. When employees feel seen, heard, and informed across the entire organization, it strengthens their sense of belonging. And belonging is not just a “nice-to-have”, it’s a key driver of workplace happiness.

This is where effective internal communications become essential. Beyond individual conversations, organization-wide communication creates the shared understanding and emotional alignment that help employees feel like they’re truly part of something bigger.

A consistent narrative around company purpose, values, and direction gives employees a clear line of sight between their day-to-day work and the impact they help create, an essential ingredient for both meaning and motivation.

Based on my Six Steps to Workplace Happiness, here are the core areas HR should focus on:

1. Reward and Recognition—Fair pay and meaningful recognition go hand in hand. Employees need to feel both valued and properly compensated.
2. Information Sharing—Keeping staff in the loop builds trust. When employees feel excluded, engagement suffers.
3. Empowerment—Give employees a voice. Involve them in decision-making and act on their ideas. It builds ownership and motivation.
4. Wellbeing—Support should extend across physical, emotional, and financial dimensions. Only by addressing all three can you create a truly supportive environment.
5. Pride—Create a sense of purpose. When employees are proud of where they work, it positively affects morale, loyalty, and reputation.
6. Job Satisfaction–Respect and trust are crucial. The relationship between employees and their managers often determines whether someone stays or goes.

The Role of HR in a Healthier Future

Employee stress is not just a personal issue, it’s an organizational risk. HR professionals are uniquely positioned to lead the charge in reversing this trend.

By creating an environment that values communication, support, and continuous improvement, they can help build more resilient, happier teams.

As the workplace continues to evolve, those organizations that invest in employee wellbeing will gain a powerful edge. This isn’t just about feeling good, it’s about performing better. That’s the heart of what I call Happy Economics.