Almost seven in ten (69%) employees say that flexible working is critical in easing work-related stress, according to a survey.
The findings carried out by workplace provider Regus found that almost two in five (38%) of workers were losing sleep worrying about work, while 35% were worried about losing their job.
A further 38% of employees said they felt less confident about the sector they worked in and 37% reported that stress was damaging their co-worker's personal relationships.
According to the survey of 400 businesses, 45% of employers noted that workplace stress was causing an increase in absenteeism, highlighting the adverse impact on business productivity as well as staff wellbeing.
Regus UK CEO John Spencer said: "This report confirms that the length of the economic downturn and stuttering recovery have put immense strain on businesses and their staff, and underlines the importance of employers taking action to address the matter.
"The most effective way to do this is to extend flexible working options, with seven in ten workers convinced that this increases wellbeing and reduces stress. This trend is in evidence across our national network, with demand for flexible workspace growing - especially at key transport hubs - as employers recognise the benefits of letting staff work at more convenient locations," he concluded.