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Burnout is bad for business — and even worse for your team

·Saya Des Marais for Rula

Yuri A // Shutterstock
Yuri A // Shutterstock
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Burnout is more than feeling a little stressed at work from time to time. The World Health Organization (WHO) takes burnout so seriously that it's included in the International Classification of Diseases. It's defined as chronic workplace stress that hasn't been successfully managed. 

The WHO estimates that burnout costs U.S. businesses a whopping $1 trillion in lost revenue every year. Not only can burnout affect your employees' well-being and lower morale, but it can also impact your company's financial bottom line.

By learning more about burnout and taking proactive measures against burnout, you can protect your employees and your company's future, Rula explains.

Key Takeaways

  • Burnout is a workplace phenomenon recognized by the World Health Organization. It's characterized by overwhelming stress, detachment and apathy, and decreased productivity.
  • Burnout doesn't only affect employee well-being. It also considerably affects companies' bottom lines.
  • As an employer or manager, you can do your part to prevent burnout by gathering employee feedback and closely examining the policies and practices that are leading them to feel burnt out.

Burnout's impact on your bottom line

The biggest impact of burnout is its effect on your employees' mental and physical health. But burnout can be expensive for organizations too. Research and nationwide surveys show that burnout can lead to decreased productivity, lost revenue, increased tardiness and time away from work, and additional healthcare costs.

 According to the American Institute of Stress: 

  • Nearly half (47%) of employees say the majority of their stress comes from work
  • Employees report losing an average of seven hours of productivity weekly due to financial stress 
  • Employers lose $183 billion per year due to decreased employee productivity 
  • Stress contributes to 40% of job turnover

Additionally, burned-out employees are 2.6 times more likely to be actively searching for another job, affecting companies' ability to retain employees. Constantly hiring and training can be expensive too.

Signs your employees are overwhelmed

It's important to recognize the burnout warning signs and take action when you see it. While burnout can look different across different people, employees might be burned out if they're: 

  • Less productive and struggle to complete tasks that once came easily
  • Missing deadlines or showing up late more often than usual
  • Expressing frustration, cynicism, or negativity about work
  • Withdrawing from coworkers, like avoiding team meetings, group projects, or social interactions
  • Overwhelmed by small challenges or more impatient than usual
  • Reporting more frequent physical complaints, like headaches, fatigue, or trouble sleeping
  • Losing interest in projects they used to be passionate about
  • Making more mistakes or having trouble focusing
  • Using more sick days, either because of mental health concerns or stress-related physical illness
  • Not offering new ideas or participating in creative problem solving
  • Showing signs of detachment or apathy
Infographic listing things that cause burnout at work

Rula

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What's driving your team to burnout

There's a misconception that burnout is about individual employees. However, most of the time, the root of the issue is workplace policies, environments, or team dynamics. 

Some common causes of burnout include:

  • Heavy workloads
  • Long working hours
  • Low pay
  • Unreasonable time pressures and deadlines
  • Lack of control and autonomy
  • Lack of connection and community
  • Toxic work environment
  • Lack of reward and recognition
  • No clear path for advancement
  • Unfair treatment 
  • Lack of role clarity

Ways to reduce burnout and improve morale

Addressing burnout will require more than a team pizza party or yoga classes. Burnout will need to be treated as a systemic issue, addressing the full workplace environment and processes that may be contributing to it. 

As an employer, here are 10 steps you can take to prevent burnout at your organization: 

  • Foster a workplace environment where it's safe to talk about mental and emotional health. Leaders can combat stigma by talking about their own mental health. This can make it more likely that your employees will feel comfortable coming to you for support when they feel burnt out.
  • Get feedback on burnout. It's important to understand the exact reasons contributing to your employees' burnout so you can adequately address them. Provide anonymous avenues for feedback where employees know they can offer honest suggestions.
  • Directly address workplace policies that may be contributing to burnout. Depending on your workplace, this could mean providing more flexible hours, options for child care, mental health benefits, shorter shifts, and more.
  • Provide clear avenues for advancement. Part of burnout is feeling like you can't make a difference or grow in your role. Clarify what employees need to do to advance or receive a promotion. 
  • Ensure autonomy. Another aspect of burnout is feeling like you don't have control over how you do your work. That's why it's essential to offer as much employee autonomy as you reasonably can. For example, you might allow employees to complete work on a schedule that makes the most sense for their lifestyle. 
  • Recognize employees for their hard work. Not rewarding employees for their efforts can lead to or worsen burnout. So, make sure to recognize employees—whether it's entire teams or individuals—who do exceptional work.
  • Assign people to passion projects. An important part of being a manager is identifying where specific employees thrive. Provide opportunities for employees to participate in special projects that align with their passions or unique skill sets. 
  • Connect the job to a greater meaning. When employees are burnt out, they may feel a lack of purpose. Leaders can help them understand the meaning behind what they do, like connecting it to their values or sharing the real-world impact of their work. 
  • Look at diversity and inclusion policies. Employees who belong to historically marginalized communities may have rightful claims of unfair treatment and discrimination in the workplace. Take a good look at your policies, both in recruitment and hiring as well as advancement. Is there anything more you could be doing to protect these employees
  • Provide accessible mental health resources and policies. Organizations can prevent burnout through providing mental health days or accessible resources like therapy. 

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