Absenteeism and presenteeism (being present without being productive), costs Australian employers $10.11bn every year, and new research has shown the top reason is actually stress.

A UK report, conducted by the Chartered Institute of Personnel and Development (CIPD), has revealed that for the first time, stress has overtaken RSI, disease and back pain to become the leading cause of long-term absence.

According to the survey of nearly 600 workers, tighter budgets, tougher workloads, and most of all the reports of job losses in some sectors, are to blame.

The report found a clear link between job security, stress and mental health. It found that employers planning to cut staff over the next six months are significantly more likely to report an increase in mental health problems among their staff. Some 51% of staff reported being stressed, compared to 32% in companies thatare not planning redundancies.

Further, there was a particular increase in stress-related absence among public sector organisations, and 24% of employees cited organisational change and restructuring as the number one cause of their stress at work.

“The survey this year shows that stress is for the first time the number one cause of long-term sickness absence, highlighting the heightened pressure many people feel under in the workplace as a result of the prolonged economic downturn,” Dr. Jill Miller, a CIPD adviser said.

Miller advised employers that to manage workplace stress, they need to improve their communication with employees, and identify those who are under excessive pressure to provide appropriate support.

"Line managers need to focus on regaining the trust of their employees and openly communicating throughout the change process to avoid unnecessary stress and potential absences. They also need to be able to spot the early signs of people being under excessive pressure or having difficulty coping at work and to provide appropriate support,” Miller said.

Rachel Clements, director of Psychological Services at the Centre for Corporate Health said workplace stress may manifest itself in a range or ways including nervousness, tension, strain, anxiety, depression and a decreased ability to cope with stressful situations.

Clements said there are many factors that can make work stressful for employees, and every person responds to work environments in a different way. A work environment that makes one person feel a little uptight, may push another person to breaking point, she said.