How to Conduct a Stress Risk Assessment (Step-by-step guide for SMEs)

Work-related stress continues to be one of the biggest operational risks facing UK organisations, with around half of all work-related ill health now linked to stress, depression or anxiety. For SMEs, the impact is particularly disruptive: reduced productivity, higher absence costs, and increased pressure on already stretched HR and leadership teams.

Despite this, many small organisations still feel unsure about how to approach a stress risk assessment or assume the process is complex. In reality, the Health and Safety Executive (HSE) makes it clear that every organisation has a legal duty to carry out a stress risk assessment and act on it, and that the process can be simple, practical and proportionate, even for SMEs.

This guide breaks down the process step-by-step, helping HR and leadership teams, meet legal expectations while creating a healthier and more productive working environment.

What a stress risk assessment is?

A stress risk assessment is a structured process used to identify work-related pressures that could harm employees, evaluate the risks, and put controls in place to reduce or remove them. HSE defines work-related stress as “the adverse reaction people have to excessive pressures or other types of demand placed on them at work.”

In practice, a stress risk assessment involves:

• Understanding what aspects of work could trigger excessive or unhealthy stress/pressure

• Identifying who may be affected and how

• Reviewing whether current workplace responsibilities, roles policies, culture and practices are protecting people

• Taking action to address issues before they escalate

The HSE’s Management Standards provide a well-established framework for this process, focusing on six key areas: demands, control, support, relationships, role, and change. These areas consistently appear in cases of work-related stress and are central to assessing and managing risks to workforce mental wellbeing.

The purpose of a stress risk assessment is not simply to highlight issues. It’s to help organisations take clear, preventative action that protects their people and reduces the likelihood of stress-related illness or absence.

Why SMEs must do it

Conducting a risk assessment is one of the most effective ways for smaller organisations to reduce operational disruption, improve retention and strengthen workforce resilience all while ensuring legislative compliance.

1. It’s required by UK law

Under health and safety legislation, organisations must assess risks to workforce wellbeing, including stress. Organisations are legally required to protect their people from stress at work by doing a risk assessment and acting on it.

If an organisation has five or more employees, this assessment must be in writing. Even smaller organisations benefit from documenting the process, as it improves consistency, accountability and the ability to review changes over time.

2. Stress is a major driver of absence

Data shows that work-related stress continues to be one of the leading causes of sickness absence across the UK, with recent updates indicating around 964,000 cases of workplace sickness absence, resulting in an average of just under 23 working days lost per person on average.

For SMEs, where every person plays a critical operational role, even one prolonged absence can affect operations, service delivery and the stability of an organisations bottom line with higher costs. The point of increased costs becomes especially prevalent as first day Statutory Sick Pay and the removal of the Lower Earnings Limit comes into effect under the Employment Rights Act 2025.

3. A structured assessment prevents issues from escalating

Unmanaged stress impacts performance, decision‑making, morale and workforce retention. By identifying risks early, whether it be workload spikes, unclear role responsibilities, lack of leadership training or limited support, SMEs can take preventative action before issues become costly.

4. It supports stronger leadership and culture

Using a clear assessment process gives HR and leadership teams a framework for conversations, actions and follow‑up processes. This reduces inconsistency, improves workforce wellbeing protections and creates a culture of openness and support where people feel they are able to raise concerns early.

5. It makes compliance simpler

Conducting stress risk assessments ensures organisations have practical tools, clear instructions and checklists to address hazards and risks making compliance more manageable than ever, even for SMEs.

Step-by-step guide

Completing a stress risk assessment doesn’t need to be complicated, especially for SMEs. Organisations must assess the risk of stress in the same way as any other workplace hazard, and that the process can be simple, proportionate and practical.

Below is a clear, actionable, step-by-step process, designed specifically for smaller organisations which will enable them to stay legally compliant and in turn, reduce stress-related workplace absences.

Step 1: Identify the stress hazards

Begin by identifying aspects of work that could create harmful levels of pressure. As has been stated, it is best to analyse six specific aspects: demands, control, support, relationships, role and change.

Common risks seen within SME may include:

• Excessive workloads or tight deadlines

• Lack of clarity around workplace role and expectations

• Poor communication during organisational change

• Insufficient support or supervision

• Conflicting responsibilities in smaller teams

Use tools such as workforce surveys, one-to-ones, exit feedback and informal conversations to identify potential patterns.

Step 2: Decide who might be harmed and how

Work-related stress affects individuals differently. When assessing which individuals may be at risk and how grave these hazards might be, SMEs should consider the following:

• The stress teams with high workloads may be experiencing

• Whether new starters are given all the tools for effective support and integration, especially for those who may lack confidence or clarity

• The impact on individuals working remotely or in isolation

• How much workload and responsibilities leadership teams are juggling to ensure operational efficiency and people management

• Supporting people with known vulnerabilities

Documenting this step helps ensure no individual or group is overlooked and ensures fair and consistent support for stress-related matters.

Step 3: Evaluate the risks and decide on controls

At this stage, identify which risks are significant and what controls are already in place. Then decide what additional actions are needed to reduce pressure to a safe level.

Organisations should take steps to remove or reduce work-related stress by addressing issues linked to the Management Standards.

Controls may include:

• Adjusting workload distribution

• Improving communication and planning

• Clarifying job roles or responsibilities

• Providing training or additional supervision

• Setting clearer expectations around working hours

• Introducing structured wellbeing check-ins

Aim for solutions that are realistic, proportionate and measurable.

Step 4: Record your findings

If your organisation has five or more individuals in its workforce, you are legally required to record the significant findings of your assessment.

Even if you employ fewer than five people, it is advised that documenting any stress risk assessment findings is good practice because it:

• Demonstrates compliance

• Helps you monitor progress

• Makes it easier to review the assessment over time

SMEs can use simple online templates or those provided during an Occupational Health Assessment to record hazards, who may be harmed, existing controls, and planned actions.

Step 5: Implement the actions

Risk assessments will have no impact unless actions are implemented to combat or minimise any identified hazards. Assign responsibility for each action, set realistic deadlines and communicate clearly with your people.

After a stress risk assessment has been conducted, organisations should:

• Share findings with relevant teams

• Explain why changes are being implemented

• Provide leadership teams with the guidance, training, support and tools they need to act

• Monitor whether changes are making a positive difference

The UK government’s “Working Minds” campaign reinforces the importance of embedding everyday habits such as reaching out, recognising signs, responding quickly and reviewing regularly.

Step 6: Monitor, review and adjust

Stress risks change as organisations grow; workloads can shift and teams may be restructured. Your assessment should therefore be reviewed:

• At least annually

• After any significant organisational change

• After incidents of stress related absence

• When feedback suggests increased pressure

If an individual reports experiencing stress, an individual risk assessment should also be completed to ensure appropriate adjustments and support.

Regular review ensures the assessment stays relevant and prevents issues from re-emerging.

Common mistakes

Even when organisations understand their legal duties, stress risk assessments often fall short because of avoidable mistakes. These gaps carry real consequences: inconsistency, rising absence, employee dissatisfaction and increased legal exposure.

Below are the most common mistakes SMEs encounter—and how to avoid them.

1. Treating the assessment as a paperwork task

Organisations have a legal duty not only to conduct the assessment but to act on the findings, reducing risks to a manageable level. Many organisations will see a stress-risk assessment as a box ticking exercise, meaning they complete the document but fail to implement the required controls. This not only increases the chance of absences and presenteeism, but also hugely increases the risk of legal incompliance.

2. Focusing on individuals instead of workplace risks and environment

Stress risk assessments must assess work-related causes, not personal resilience. When assessments are centred solely on individuals rather than structural issues, the root causes remain unaddressed, and the issues can quickly rear their head once again.

3. Not consulting people directly affected

Organisations must involve their workforces and any individuals affected by a stress-based hazard in identifying and evaluating risks. Failure to speak with teams leads to missed issues and weak controls. When leadership teams are equipped with the understanding on how to have difficult conversations and have been able to cultivate a culture of openness, this can be curtailed.

How to implement findings

A stress risk assessment only delivers value when it leads to clear, visible action. Implementation doesn’t need to be complex—especially for SMEs—but it does need to be structured and accountable.

Communicate the outcomes early

Share the assessment findings with relevant teams and explain why actions are being implemented. Transparency builds trust and reinforces psychological safety.

Assign clear ownership

Each action should have a named owner and realistic delivery timeframe. SMEs often have small teams, so assigning responsibility avoids delays and ensures accountability.

Prioritise the highest-risk areas

Use the Management Standards to identify where risk exposure is highest (e.g., workload, communication during change, insufficient support). Address these before lower-risk concerns.

Embed adjustments into everyday operations

Examples include:

• Introducing structured check-ins for workload and wellbeing

• Improving clarity around responsibilities

• Adjusting support measures or deadlines during peak periods

• Setting expectations for communication and change management

Stresses that risk controls should be practical and proportionate. Small, meaningful changes often have the greatest impact.

How an EAP can support with managing workforce stress

For many SMEs, they may not have the capacity, expertise or internal capability, to manage or assess stress risks safely and consistently. In cases such as this, they may require clinically led and accredited wellbeing support. Using HA | Wisdom Wellbeing’s Employee Assistance Programme (EAP), your organisation can ensure the wellbeing of its people is managed and safeguarded whilst meeting its legal obligations. Supporting 12.5 million lives across 88,000+ organisations with industry leading clinical support, HA | Wisdom Wellbeing’s EAP offers specialist services designed to reduce workplace absences.

Conclusion

Stress risk assessments are one of the simplest and most cost-effective ways for SMEs to strengthen compliance, reduce absence and build a healthier, more resilient workforce. With rising levels of work-related stress across UK workforces in combination with clear legal expectations, the need for structured, preventative action has never been greater.

By following a practical step-by-step process and embedding meaningful controls into day-to-day operations, your organisation can create a safe workplace environment. This will in turn help individuals to feel supported and leaders to feel confident that risks are properly controlled with reliable process in place to combat concerns.

FAQs

Is a stress risk assessment a legal requirement in the UK?

Yes. Organisations are legally required to protect workforces from work-related stress by conducting a suitable and sufficient risk assessment and acting on it. This expectation is confirmed in current HSE guidance on stress and mental health at work.

Do SMEs need a written stress risk assessment?

If your organisation’s workforce consists of five or more individuals, yes, it is a legal requirement to record significant findings. Even smaller teams benefit from documenting risks and controls.

How often should organisations review their stress risk assessment?

At least annually — or sooner if there is a major organisational change, a spike in stress related absence, or feedback indicating rising pressure. HSE’s Working Minds campaign emphasises the importance of reviewing controls regularly and embedding stress prevention into routine operations.

What evidence should we gather during a stress risk assessment?

SMEs typically use:

• One-to one conversations

• Team discussions

• Attendance data

• Feedback surveys

• Exit or return-to-work interviews

• Stress indicator tools and Talking toolkits

These help identify patterns of pressure and evaluate where controls may be needed. HSE provides templates and examples tailored to SMEs.