Workplace stress reaching a breaking point? How employers can respond

Employees are facing rising expectations, according to a new survey, and issues with burnout are rising as well.

More than half of the 1,000 employees in Modern Health’s annual Workforce Mental Health Report admitted to dealing with the stress by using alcohol or other substances on the job (52%) in the past year, and more than half said they had cried due to work stress (51%) in the month leading up to the survey.

May is Mental Health Awareness Month.

“We’re seeing an extraordinary collision of stressors across the U.S. workforce — AI, economic pressure, and global uncertainty — driving a level of strain that’s no longer sustainable, and it’s starting to show up in very visible ways,” Alison Borland, Modern Health’s chief people and strategy officer, said in a news release. “Simultaneously, expectations are rising, and many employees don’t feel supported. That imbalance is manifesting in concerning levels of anxiety and unhealthy coping mechanisms.”

Eighty-four percent of workers at companies with at least 250 employees said that burnout is affecting their productivity to some degree, and 72% said they have felt pressured to work through mental health struggles (up from 62% in 2025).

Help is often available, but workplace cultures can serve to hinder, as 50% of employees said they don’t use employer-provided mental health days out of fear of judgment. So, despite 76% reporting adequate mental health coverage through employee health benefits, just 33% strongly agree that their employer values their mental health (down from 41% in 2025).

The report recommends that employers expand support while working to lower the social cost of taking advantage of mental health resources.

“Availability alone won’t shift outcomes if the experience of using resources still carries risk,” the report said, suggesting that companies treat mental health days like any other time off and remove unnecessary disclosure requirements for those seeking help.

The report explored three specific areas of stress.

The rise of artificial intelligence

Two-thirds of employees, surveyed in late March, said AI has raised productivity expectations. Among that group, 64% reported increased stress as a result, while 69% said they believe AI will lead to layoffs at their own company within three years, and 49% said they were afraid of losing their job to AI.

“Every major shift in how work gets done creates uncertainty before it creates efficiency,” the report said. “Organizations that manage that transition deliberately — through clear communication, realistic timelines, and visible leadership on what will and won’t change — reduce anxiety and friction.”

The rise of political tensions

The current U.S. political environment, according to 70% of respondents, has made it harder to maintain positive mental health at work, with concerns about war and terrorism (52%) and current events (50%) outranking financial stress, job demands, and fear of layoffs among negative influences on mental health. A similar percentage, 71%, believe politically driven anxiety could be reduced through workplace mental health support.

 “Managers need clear frameworks for how to acknowledge difficult moments without taking a political stance, how to respond to fear and uncertainty with appropriate support, and how to recognize when to escalate,” the report said.

The rise of challenges facing managers

Two in five senior managers said they received a new mental health diagnosis in the past 12 months — more than three times the rate of nonmanagers (13%). Senior managers also reported higher levels of AI-related anxiety, with 74% expecting AI to lead to layoffs in their company within three years and 57% afraid of losing their job to AI.

 “Managers need resources that reflect actual demands of their role: navigating uncertainty, holding difficult conversations, setting sustainable boundaries, and recognizing strain early,” the report said. “That includes dedicated pathways to their own care.”

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.