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Why You Need to Worry About Employee Burnout

Employee burnout can harm workers' mental and physical health and lower their productivity. Learn how to prevent employee burnout.

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Written by: Julie Thompson, Senior WriterUpdated Dec 12, 2024
Shari Weiss,Senior Editor
Business.com earns commissions from some listed providers. Editorial Guidelines.
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Chronic fatigue, disengagement, low motivation and poor performance are some telltale signs of employee burnout that companies need to pay close attention to. If your best employees aren’t completing projects or have gone quiet, they may be burned out. 

It’s essential to recognize these red flags early, because employee burnout affects both your team’s overall well-being and your business’s bottom line. We’ll examine why you should worry about employee burnout, what causes it and how to address it.

Why you need to worry about employee burnout

A company’s workforce is its No. 1 resource. But according to the National Alliance on Mental Illness’ (NAMI) Workplace Mental Health Poll, more than half of employees reported feeling burned out in the past year, and 37 percent reported feeling so overwhelmed that it was hard to do their job.

“Burnout has to do with chronic stress related to a heavy workload, sometimes unclear job expectations, feeling a lack of control and potentially feeling a disconnect between the individual and the organization — sometimes in terms of values or long-term goals,” said Bisma Anwar, a Talkspace therapist and licensed mental health counselor.

When employers prioritize employees’ health and well-being, their motivation, engagement and productivity increase. In contrast, when these considerations are neglected, staffers may start to feel burned out. Unfortunately, it’s not always obvious to employers when their employees are worn out.

“It’s harder to recognize as an employer, because no one’s going around [asking employees], ‘Hey, do you have burnout? How are you doing on your mental health?’” Joy Parrish, a licensed professional counselor and mental health care expert at Headspace, told us. “It’s just not a normalized conversation in the workplace.”

Employee burnout is likely to contribute to the following problems.

Decreased productivity

A mounting body of research demonstrates a positive correlation between an employee’s health and well-being and their productivity at work. Simply put, an employee who is healthy and well rested is more likely to deliver high-quality output than an employee who is struggling with a demanding workload. 

On the flip side, employees who experience burnout may show decreased productivity: 33 percent of the NAMI survey respondents saw their work productivity suffer because of their mental health.

According to a FlexJobs survey, flexible working arrangements support mental health and productivity. In that survey, 96 percent of respondents said a remote work or hybrid model would improve their mental health. 

“These are the small things that I think make a huge difference for people to have — a work-life balance to be able to say, ‘I can do my job without having someone looking over my shoulder all the time,’ because that’s very, very stressful and that contributes a lot to burnout,” Parrish said. “So it’s focusing on the quality of the work as opposed to the specific processes or regimented ways in which it gets done.”

TipBottom line
Are you interested in offering a remote work option but don’t know how to get started? Learn about remote work best practices, and check out a sample policy.

High turnover 

Managers often overwork their best employees without considering their well-being. As a result, top-performing team members may start falling short of expectations and eventually quit. 

According to the NAMI survey, 34 percent of employees ages 18 to 29, 28 percent of employees ages 30 to 49, and 21 percent of employees ages 50 to 64 said they considered quitting because of work’s impact on their mental health. Workers who are burned out are nearly three times more likely to report actively looking for another job than those who don’t report burnout, according to data from the Society for Human Resource Management (SHRM). 

What are the implications of these findings? For starters, low employee retention and high turnover come with an equally high price. Replacing departed workers can cost an organization thousands of dollars. Aside from the financial impact, companies may have to grapple with the operational consequences of losing top talent. 

Bottom LineBottom line
Burnout not only comes with a hefty price tag but also drains valuable talent from an organization.

Low employee engagement

Engagement pertains to an employee’s commitment to the business’s goals and involvement in the company culture. An engaged employee is more likely to work hard and exert more effort because they value the organization’s success.

Employees who experience burnout are more likely to “check out” mentally, leading to reduced employee engagement, according to the SHRM data. In addition, workers who report burnout are 16 percent less likely to go above and beyond what is expected of them at work, the data found.

Disengagement translates to significant losses in revenue because of its adverse impacts on employee productivity and motivation. Therefore, a highly engaged workforce is crucial to the growth and longevity of the organization, while widespread burnout can torpedo a company’s future. [Find out how to improve employee engagement.]

Negative health impacts

Overworking employees can be taxing on their mental and physical well-being. According to Headspace’s 2024 Workforce State of Mind report, 77 percent of respondents said work-related stress had negatively impacted their physical health. Employees may experience “physical and emotional exhaustion,” including headaches, fatigue, difficulty sleeping and stress-related illnesses, Anwar said.

The stress induced by working long hours may lead to mental illness, anxiety and other severe health conditions, like heart disease. Moreover, a stressed-out employee is more likely to develop unhealthy behaviors such as binge drinking and overeating: 75 percent of respondents to the Headspace survey reported that work stress contributed to weight gain.

With today’s high healthcare costs, this can translate to thousands of dollars in medical and insurance expenses for employers and employees. On top of that, when an employee is ill more often, they take more sick days. With more employees out sick, the remaining workers are forced to pick up larger workloads, possibly fueling their own burnout — and then the cycle continues.

“A lot of people will start having the stress symptoms where they’re having to call in sick more often,” Parrish said. “They sometimes have the inability to ask for help.”

TipBottom line
Have you noticed your employees calling in sick more often? Learn how to reduce employee sick days by encouraging a healthy workplace.

Causes of employee burnout

The reasons for employee burnout vary depending on the industry, the organization and the employee’s role within the company. However, these are some of the most common causes of employee burnout. 

Tasks outside the job scope

Managers who saddle their employees with responsibilities beyond what they were hired for are setting those team members up for exhaustion and inefficiency. Additional unrelated assignments can disrupt workflow, increase frustration and lead to more hours on the job. Workers get overwhelmed, focus on the wrong tasks and, ultimately, burn out.

Anwar warned that overwhelming employees with communication and requests can lead to problems with work-life balance.

“Employees might have difficulty detaching from work, not being able to disconnect, if they’re having emails and messages coming in constantly, even after working hours,” Anwar said.

Miscommunication

Unclear expectations for each employee can also lead to employee burnout. To avoid misunderstandings, each employee should have an assigned role with clearly defined duties. Communicate updates and changes frequently so managers and employees are on the same page.

Tension with colleagues or managers

Issues among colleagues commonly fuel burnout. For instance, an office bully may cause co-workers to feel stressed from dealing with that negative personality. 

Ineffective or micromanaging bosses can also contribute to employee burnout. According to the Headspace survey, 97 percent of people said their relationship with their manager had a negative effect on their mental and emotional well-being in the past year. 

Consider adding team-building activities to the work calendar to give staff a break from their typical work and encourage everyone to get to know each other on a deeper level. This can go a long way toward improving manager and employee relations. Employee training, especially for managers, is also helpful for this purpose.

Social isolation

In some cases, personal issues could be at the root of burnout. For instance, a team member may be socially isolated and not have a support system outside work. Or, the employee may not prioritize work-life balance. 

“There are some employees who put their working life above their personal life and give up certain things that would provide fulfillment for them personally, like their own socialization with friends, family and community,” Anwar said.

To mitigate problems before they worsen, encourage employees to reach out if they are experiencing mental, physical or social health issues that may be impeding their productivity.

How to address employee burnout 

In some cases, employers may not realize that their work culture is contributing to employee burnout. Luckily, business leaders can take proactive steps to prevent and address burnout.

Eliminate bias.

As a business leader, it can be easy to have favorites among your staff. Workers who are a good fit for the company culture or complete their tasks perfectly set themselves apart. 

However, both open and unconscious bias can lead to favoritism that hurts employee productivity and loyalty. Those who don’t feel “chosen” are more likely to be frustrated with their work. Strive to treat every team member with the same level of respect, and ensure that your benefits are equitable across the company.

TipBottom line
Keep an open-door policy. If employees have concerns about unfair treatment, give them the space and time to voice their opinions safely. Once a situation is identified, aim to resolve it as amicably as possible.

Play to employees’ strengths.

Employees make or break a business’s success, so you should play to their strengths by providing a work environment that caters to their individual skills, personalities and work styles. Some people may like to listen to music while they work, whereas others may prefer to take a walk to clear their mind. 

Offer work areas that accommodate a variety of styles. To keep staffers engaged in their work, develop creative projects that take advantage of their unique skills. Refreshing their workload or the workplace itself can breathe new life into the employee experience.

Offer resources.

Many employers offer preventive wellness programs, like mindfulness Mondays, guided meditation, yoga classes, free therapy sessions via mental health partners, and mental-health-related education, Anwar said. In addition, employers can offer employee assistance programs (EAPs) to connect their employees with mental health resources if they’re experiencing burnout.

According to Parrish, EAPs can make it easier for people who are hesitant about seeking therapy to access helpful resources.

“I’ve seen a lot of people who’ve come to EAPs who really get their first taste of therapy ever,” Parrish said. “And maybe they’re in their 50s, 60s, and they’re like, ‘Wow, I never realized that this could be helpful.’ It’s such a great way to kind of get someone’s foot in the door to be like, ‘Yeah, therapy is not so scary.’”

Value quality over quantity.

Unrealistic workloads can create mental and physical health issues for workers. “If someone has a boss assigning A, B and C, is that something they can realistically do in the time frame they’re supposed to be doing it?” Parrish said.

Adding unnecessary meetings, additional paperwork or tasks beyond the scope of the employee’s job can bring stress and frustration, especially if staffers skip lunch or complain to one another about unrealistic work expectations. 

Instead, emphasize quality over quantity. By valuing employees’ excellent work rather than the number of tasks they complete, you’ll help team members feel valued. In turn, they may be more willing to improve processes, which can end up boosting productivity and efficiency without resulting in burnout.

Show appreciation.

Almost everyone appreciates praise. Frequent pep talks and congratulations for a job well done help employees feel valued. 

“It’s not always about the job; it’s also about the human being,” Parrish said. “It’s saying, ‘Hey, I see you,’ or ‘Hey, you did a great job,’ or ‘Hey, how’s your family doing?’ That goes a long way.”

For example, employers can write notes of appreciation to their employees for a job well done or offer employee bonuses for exceptional performance, Anwar said. Employers that tend to emphasize mistakes rather than success can leave their employees feeling undervalued.

“This attitude towards criticism, but not giving positive feedback, appreciation and acknowledgement can lead to employees feeling like their work is not important enough to be acknowledged,” Anwar said.

Making employees feel appreciated can counter the effects of burnout and transform your company culture. Recognize when an employee exceeded expectations, and explain how their work helped them meet personal and company goals. Ending one project on a positive note can help you transition them into a new one.

Erin Donaghue contributed to this article.

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Written by: Julie Thompson, Senior Writer
With nearly two decades of experience under her belt, Julie Thompson is a seasoned B2B professional dedicated to enhancing business performance through strategic sales, marketing and operational initiatives. Her extensive portfolio boasts achievements in crafting brand standards, devising innovative marketing strategies, driving successful email campaigns and orchestrating impactful media outreach. At business.com, Thompson covers branding, marketing, e-commerce and more. Thompson's expertise extends to Salesforce administration, database management and lead generation, reflecting her versatile skill set and hands-on approach to business enhancement. Through easily digestible guides, she demystifies complex topics such as SaaS technology, finance trends, HR practices and effective marketing and branding strategies. Moreover, Thompson's commitment to fostering global entrepreneurship is evident through her contributions to Kiva, an organization dedicated to supporting small businesses in underserved communities worldwide.
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