Understanding and Managing Occupational Stress in Third Sector Organisations

Working in the third sector is incredibly rewarding, but it also comes with unique challenges.

Charities, social enterprises, and non-profits often operate with tight budgets, small teams, and high emotional demands.

When the mission matters deeply, staff and volunteers frequently give everything they have. In some cases, that passion can tip into pressure, leading to occupational stress.

What Is Occupational Stress?

Occupational stress occurs when the demands of a role exceed an individual’s ability to cope. Unlike everyday workplace pressure, it’s a state of chronic strain that can affect mental health, physical wellbeing, and overall effectiveness.

In the third sector, stress often arises from juggling competing priorities such as fundraising targets, service delivery, stakeholder expectations, while striving to make a meaningful difference.

Common Causes of Stress in the Third Sector

• High workloads and limited resources: Staff often wear multiple hats, facing tight deadlines, funding uncertainty, and lean budgets.

• Emotional labour: Working with vulnerable communities or distressing issues can take a toll, leading to compassion fatigue or burnout.

• Lack of structure or support: Smaller organisations may lack formal HR systems or regular supervision, leaving employees unsure where to seek help.

• Organisational change: Restructuring or short-term funding can create instability and anxiety among staff and volunteers.

• Conflict or difficult dynamics: Even mission-driven teams can experience interpersonal conflict, which, if unresolved, can damage trust and morale.

The Scale of the Issue

Occupational stress isn’t just an HR concern—it’s an organisational risk:

• Poor mental health costs the UK economy an estimated £300 billion annually.

• Over 70% of workers report feeling stressed at work.

• In 2022/23, there were 17.1 million working days lost due to stress, depression, and anxiety.

• According to the CIPD Good Work Index 2025, 23% of employees feel exhausted or under excessive pressure.

For third sector organisations, where people are the greatest asset, unmanaged stress threatens both wellbeing and the delivery of your mission.

Recognising the Signs

Managers and leaders should watch for early warning signs that someone may be struggling:

Physical: Persistent fatigue, frequent illness, or absenteeism.Emotional: Mood swings, anxiety, withdrawal, or loss of motivation.Behavioural: Decline in performance, social withdrawal, or increased conflict.

Recognising these signs early allows for timely support before issues escalate.

Strategies for Managing Occupational Stress

1. Promote work–life balanceEncourage staff to take regular breaks and use their annual leave. Overworking “for the cause” may feel admirable, but it isn’t sustainable.

2. Foster open communicationBuild a culture where people feel safe discussing pressure or burnout. Regular check-ins (formal or informal) help identify issues early.

3. Strengthen support systemsProvide access to Employee Assistance Programmes (EAPs) or mental health support. Where budgets are limited, consider partnerships with local wellbeing charities.

4. Offer flexibilityFlexible hours or remote working can help staff manage personal commitments, especially for those with caring responsibilities.

5. Create a supportive environmentEncourage team connection through shared reflection sessions or wellbeing initiatives. Small actions like a quiet space to decompress can make a big difference.

6. Build resilience and awarenessTraining on stress management, mindfulness, or emotional resilience can help staff recognise their limits and manage stress more effectively.

Aligning with Key Dates: Stress Awareness Week 2025

International Stress Awareness Week runs from 3–7 November 2025, with the theme “Optimising Employee Wellbeing through Strategic Stress Management”.

This is an opportunity to:

• Raise awareness about workplace stress.

• Launch or refresh wellbeing campaigns or check-ins.

• Promote conversations about resilience and support.

• Connect with external resources or local charities.

Aligning with this week can engage your team, amplify your message, and build momentum for sustainable wellbeing practices.

Legal and Ethical Duties

Health and Safety at Work Act 1974: Employers must protect the health, safety, and welfare of employees—including mental health.

Equality Act 2010: Protects employees experiencing mental health conditions and requires reasonable workplace adjustments.

Meeting these obligations is not only about compliance—it reflects your organisation’s values of care, compassion, and respect.

Why It Matters

Ignoring occupational stress can lead to:

• Declining mental health

• Increased absenteeism

• Higher turnover

• Reputational damage

When employees and volunteers feel supported and valued, they are more creative, resilient, and effective. Managing occupational stress is essential for sustaining impact and protecting the people who make that impact possible.

Occupational stress is a growing concern across all sectors, but in the third sector, the emotional intensity and resource constraints make it particularly pressing. By recognising the signs, taking proactive steps, and leveraging key awareness initiatives, leaders can ensure their teams remain healthy, engaged, and ready to keep making a difference.

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