Fears over job security and economic uncertainty appear to be taking their toll on employees' health and wellbeing, according to Canada Life.
The group risk insurer has found that almost half of all employees are more stressed at work than they were this time last year.
It suggested conditions have worsened over the last 12 months with many employees finding themselves having to cover the workload of a diminishing workforce.
A third (34%) of respondents to Canada Life's survey believe job cuts have resulted in a smaller workforce which is being stretched to cover the same workload.
However, many admit to taking time off because they are tired (33%) and stressed (20%).
Overall, almost half of employees (47%) are more stressed than this time last year and a further 13% believe this will worsen in the future.
Furthermore 27% avoid taking time off for sickness because they fear it will count against them in a job market where cuts are still taking place.
This is being illustrated by people feeling the need to work while away from work, the research added.
Those employees who have experienced a period of absence for either sickness, stress or tiredness have found that time off work does not provide them with the rest they need.
And a third of employees (29%) feel the pressure to keep up with work while they are off sick by checking and answering emails, and a further 33% found that their workload has been left for them to tackle when they are back.
Paul Avis, director of sales and marketing at Canada Life Group Insurance, explained that widespread job cuts over the past few years we have placed the remaining workforce under additional pressure.
"Not only do they have to cover the workload that has been left, but also because they feel that they have to make themselves invaluable to their employer, so that they too are not left facing unemployment," he said.
"Consequently, stress and tiredness now count as two of the most common reasons behind employee absence.
"This involves both a financial cost to the employer, and can place employees under greater strain upon their return to work and therefore it is in all parties' interests to ensure that support mechanisms are in place to help employees manage their workload and stress levels, and monitor their health and wellbeing," he added.
