The Hidden Costs of Anxiety in the Workplace: How It Affects Productivity and Employee Well-Being

The workplace is as riddled with problems as the world at large. Think about it: our jobs are a part of our everyday lives. The same issues we face in life are also present at work. In particular, anxiety stands out as one of these issues. It’s an all too common problem in today’s society. Despite its prevalence, those who have it often don’t completely understand it.

How does anxiety affect productivity and employee well-being? Anxiety disorders can be debilitating. They greatly impact quality of work, employee engagement, and morale. These factors can affect profit, revenue, and efficiency, among others. However, people often put mental health concerns on the back burner. Thus, many employers don’t realize just how much it’s costing them.

In this article, we will explore how anxiety affects employees in a work setting. We will also talk about the steps employers can take to address the issue. By understanding the hidden costs of anxiety, employers can create a healthier, more productive workplace for all.

What Are the Hidden Costs of Anxiety in the Workplace?

Anxiety is an emotion characterized by feelings of tension and worried thoughts. It can also come with physical symptoms like increased blood pressure. Everyone experiences anxiety in varying degrees at different points in their life. But for some, it’s a more persistent problem that affects their daily life.

Anxiety disorders are among the most common mental health issues today. 40 million adults in the U.S. (18.1% of the population) struggle with the condition.

Thrive Founder and CEO Arianna Huffington writes:

According to a new survey from One Medical, 64% of employees reported struggling with mental health issues. […] Employers need to meet employees where they are by bringing well-being reminders and recommendations into the workflow.

We can’t easily perceive the cost of employee anxiety in a business due to its nature. It’s hard to measure something often unseen and unrecognized at work. But if left unaddressed, anxiety can have serious consequences. This goes for the employees and the company’s bottom line.

The cost of anxiety in the workplace can manifest in different ways.

Decreased Productivity

The mental strain of anxiety quickly leads to decreased productivity. Anxious employees often struggle to focus on tasks. This leads to lower-quality work, more errors, and reduced output. Because employees are less efficient when riddled with anxiety, they can miss deadlines. They are also unlikely to meet company expectations or standards. All these can result in a decrease in profits, especially on a large scale.

Increased Absenteeism

Anxiety can lead to increased absenteeism. After all, employees may be unable or unwilling to come to work due to their mental state. This can disrupt workflow and hamper the company’s efficiency. Problems may also arise if an anxious employee handles many or bigger tasks.

Higher Turnover Rates

Employees with anxiety may be more likely to leave their job. They often do so in search of a better work environment. While people quit work or change jobs all the time, a high turnover rate can lead to higher recruitment and training costs. It also results in lost productivity while searching for the right candidate.

Poor Employee Relationships

Healthy and positive relationships are vital to team coordination. But employees with anxiety often struggle to form such relationships. At work, this involves colleagues and supervisors. When anxiety is left unchecked, it can lead to a negative work environment. Morale is more likely to decrease. Employees with anxiety may also be left out of the loop at work. All these can cause tensions to rise and make employees feel unsafe.

Pronounced Human Error

Anxiety can make employees more prone to making mistakes. After all, they suffer from a lack of focus and attention. This can lead to costly errors and delays, resulting in lost time and revenue. Businesses may also lose clients whose accounts are affected in these situations.

Compromised Employee Well-Being

Anxiety can have a serious impact on employees’ physical and mental health. This can lead to increased healthcare costs and a decrease in employee well-being.

Employees often force themselves to accomplish tasks despite feeling overwhelmed. The unfortunate results of this are often fatigue and burnout. Left unaddressed, anxiety can even make employees sick.

Compromised Company Sustainability

Unaddressed anxiety can cause employees to burn out or become sick. This can be detrimental for both the employee and the employer, as it leads to:

A decrease in productivity and efficiency
An increase in healthcare costs
A lack of commitment from employees

These things all contribute to the downfall of the company’s sustainability. After all, if employees cannot do their jobs well, the company will suffer.

What Causes Anxiety in the Workplace?

Many people have anxiety disorders because of several factors. Often, it has to do with their personal lives and traumatic experiences. Work problems also play a huge role in employee anxiety and stress.

Here are some factors that cause anxiety at work.

Stressful Work Environments

The workplace is often already stressful for employees simply because of their tasks. This is even more apparent in high-stress jobs like healthcare work. But what happens when you add an unhealthy culture or toxic environment on top of regular work stress? It can make employees more prone to anxiety. Some sources of stress that can cause anxiety include:

Poor management practices
Unrealistic deadlines
Heavy workloads
A lack of resources
Toxic Culture

These things can be traced back to the top of a company. If the leadership is not providing employees with the right tools and resources, it can lead to a stressful environment.

Do you want to learn how employers can promote a positive workplace culture? Read our piece “Workplace Ethics: Creating a Culture of Integrity and Respect.”

Lack of Support

Employees can also develop anxiety because of the lack of support from the company. This can manifest as:

Harsh criticisms
Micromanagement
A lack of appreciation for their efforts
Unwelcoming colleagues or work environment

The feeling of being unappreciated and unsupported can cause stress and anxiety. Not having enough support from those around them can make employees feel undervalued. Employees may feel neglected and unimportant. Without constructive feedback, they may also worry about not performing well enough to meet company standards.

Besides anxiety, a general lack of support may result in:

Job dissatisfaction
Decrease in team morale
Increase in absenteeism

Companies need to provide employees with proper resources and support. This includes both physical tools and emotional support. These tools can go a long way in reducing levels of stress and anxiety.

Do you want to learn how to maintain employee job satisfaction? Read our piece “18 Tips For Maintaining Job Satisfaction And Productivity.”

Workplace Discrimination

Discrimination at work can cause employees to feel anxious and stressed. Employees may experience discrimination because of their:

Racism
Gender
Age
Education or work experience

Discrimination doesn’t pick places. It can occur anywhere, even in the workplace. Facing prejudice can be incredibly stressful and damaging. Companies must do their best to create an inclusive culture and promote a safe space for all.

We have written an article about how to break one common prejudice. Check out our piece “Dismantling Workplace Barriers for Women: Challenges and Solutions.”

What Can Employers Do to Address Anxiety?

Anxiety can be a serious issue in the workplace. It can also have far-reaching consequences. Employers need to take proactive steps to address anxiety. Taking action now can help create a more positive workplace for the benefit of all.

Here are some helpful strategies.

Education &Training

Education on mental health issues and how they affect the workplace can be a great first step. Employers can also offer training in stress management and emotional intelligence.

Open Communication

Open talks between employees and supervisors are keys to addressing anxiety at work. Make sure everyone feels comfortable discussing their mental health concerns. This can help create a safe space for employees to share their issues.

Flexible Schedules

Flexible work schedules and remote work options can help ease anxiety for some. This is especially true for those who struggle with the demands of a full-time job.

Support Services

Employee assistance services or mental health days can help provide support to employees.

SHRM President & CEO Johnny C. Taylor, Jr., writes, “As employers, it’s our responsibility to support our employees in any way we can. We need to meet them where they are and make sure that they have access to the care and information they need to get help.”

Recognition & Rewards

Rewarding employees for their hard work boosts morale. It also creates an environment of positivity. Recognizing employees for their performance will make them feel valued. This, in turn, can reduce anxiety.

Conflict Resolution

If conflicts arise, employers should handle them swiftly and fairly. This can help reduce the stress and anxiety of unresolved issues at work.

Resource Provision

Giving employees the resources they need for their jobs can help ease anxiety. Provide adequate tools, technology, and training. These all go a long way in keeping employees motivated and stress-free.

Fair Systems Implementation

Fair and transparent systems and processes can help build trust at work. This can lead to reduced levels of stress and anxiety.

How Can Employees Help Address Anxiety?

Employees can also do their part to address anxiety at work. Here are some tips on how they can help:

Speak Up

If you feel like your mental health is being ignored, don’t hesitate to speak up. You are not alone. Also, there are resources out there that can help. For example, many companies offer employee assistance programs.

Speaking up also encompasses knowing when you are being treated unfairly. Of course, it’s also the company’s role to protect you from prejudice or unfair practices. But if you feel like this is happening, let your employer know.

Take Care of Yourself

Healthy practices go a long way in keeping yourself grounded and less stressed. Make time to do the following:

Take breaks when needed
Practice self-care
Listen to your body
Make sure to get enough sleep
Eat healthy meals
Exercise regularly

In addition, make sure you are taking advantage of your vacation days.

Taking care of yourself also means learning to say no to too much work. If you are overwhelmed, set boundaries. Try to delegate tasks when possible.

DEI consultant Janice Gassam Asare, Ph.D., says it best:

We are all trying to change the world in different ways and it can be overwhelming and anxiety-inducing to fight against systems and structures that weren’t made to see us well or thriving.

Please take this as your reminder to find moments to #pause. To sleep whenever you can and to find micro-moments of joy throughout your day.

Practice Mindfulness

Mindfulness is the practice of being aware. It is the art of focusing on the present moment. Mindfulness can help you stay grounded during times of stress and anxiety. It can also help you think more clearly, which can be beneficial in certain situations.

Seek Professional Help

If symptoms of anxiety become severe or unmanageable, seek professional help. Many professionals specialize in helping people manage anxiety. They can provide support and guidance on how to better manage your anxiety.

Connect with Others

Reaching out to a colleague, mentor, or friend can be helpful. Sharing your experiences with someone else can help you feel supported and understood. If your concern is largely about work, talk to you supervisors or the HR department for support.

Gentry Lynn, CEBS, REBC, RHU writes:

I may be way grown. I may be a professional. With a whole 20+ year (successful) career. With a bunch of acronyms and degrees. Work anxiety is still real though. I’m probably not supposed to talk about that or admit that here. Yet, here I am. Because I know one of you needs to read this too.

I still appreciate, need, and want my mom. None of those ‘good’ things listed above compare or equip me the same way a mother or (Heavenly) Father does. I’m grateful for both. And will never be above accepting help from either.

Advocate for Change

If you think the company could do more to address anxiety at work, don’t hesitate to bring it up. Your voice matters!

We understand that it can be intimidating to speak up. But advocating for yourself and others can make a real difference. Often, there are employee support groups that help individual workers voice out their concerns.

Set Healthy Boundaries

Setting boundaries at work can help you stay in control. At the same time, boundaries allow you to manage your workload more effectively. This reduces anxiety levels and helps makes sure you do not overwork. For example, you can opt not to answer messages after work hours or during the weekends.

Remember, work is a big part of your life. However, it shouldn’t be the center of your existence. Being a great employee should never mean sacrificing your health or well-being.

The Benefits of Addressing Anxiety in the Workplace

Addressing anxiety at work can lead to many benefits for employers and employees. It increases productivity and helps create a healthier and more supportive workplace. Employees can focus on their work better and feel more fulfilled in their jobs.

In addition, addressing anxiety can yield the following benefits:

Improved communication between employees and management
Reduced employee turnover, which can help save money
Increased morale among employees, leading to higher job satisfaction
Decreased stress levels, which can result in improved overall mental health
Stronger relationships between coworkers, leading to a better teamwork

These are just a few of the benefits that addressing anxiety in the workplace can bring. Note that this is not a one-time solution. Instead, it should be an ongoing effort for everyone involved. It requires the collective work of employers, employees, and all stakeholders.

Do you want to learn more about how collective action can change the workplace? Check out “Reimagining the World of Work: A Call for Collective Action and Innovation.”

To Wrap Up

A workplace that acknowledges and supports employees’ mental health is essential to a company’s growth. It’s time for employers to make mental health a priority. They also need to ensure all employees feel safe, respected, and supported. We can do this through initiatives such as implementing mental health policies, offering training and support, and creating a culture of openness.

Best-selling author Rita McGrath emphasizes:

If statistics are to be believed, mental health issues, including anxiety[,] are quite prevalent, particularly among high-achieving professionals. And yet, few are willing to openly discuss the state of their mental health because of shame. We’re supposed to have the answers, drive results and leave our emotions at home. That’s nonsense.

If you or your colleagues are feeling overwhelmed by anxiety, resources are available. Remember, you don’t have to face this alone. Many people can offer support.

By creating a culture of openness and understanding, employers can ensure employees are healthy and productive. This can lead to better relationships between employees. It can also result in improved job satisfaction and mental health.

FAQs Covered in this Article

Q: What are the hidden costs of anxiety in the workplace?

A: The hidden costs of anxiety in the workplace include decreased productivity, increased absenteeism, higher turnover rates, increased medical expenses, and reduced employee engagement and job satisfaction.

Q: How does anxiety impact employee productivity?

A: Anxiety can impair an employee’s ability to concentrate, make decisions, and work efficiently. This leads to reduced productivity, as anxious employees may take longer to complete tasks or struggle to meet deadlines.

Q: How does anxiety affect employee well-being?

A: Anxiety can lead to physical symptoms such as headaches, fatigue, and sleep disturbances, as well as emotional symptoms like irritability and depression. These symptoms can negatively impact an employee’s overall well-being and their ability to perform at their best.

Q: What can organizations do to identify and address anxiety in the workplace?

A: Organizations can encourage open communication about mental health, provide access to resources and support systems, offer flexible work arrangements, and create a supportive work environment that promotes stress reduction and work-life balance.

Q: How can managers help employees cope with anxiety at work?

A: Managers can provide support by fostering a positive and inclusive work environment, encouraging open communication, offering flexibility, setting realistic expectations, and providing resources and training on stress management and mental health.

Q: What strategies can organizations implement to reduce anxiety and create a healthier work environment?

A: Strategies to reduce anxiety in the workplace include providing employee wellness programs, offering flexible work arrangements, promoting a healthy work-life balance, creating a supportive and inclusive work environment, and providing training and resources on stress management and mental health.