BDC Hamburger Icon

MENU

Close
BDC Logo
Search Icon
Advertising Disclosure
Close
Advertising Disclosure

Business.com aims to help business owners make informed decisions to support and grow their companies. We research and recommend products and services suitable for various business types, investing thousands of hours each year in this process.

As a business, we need to generate revenue to sustain our content. We have financial relationships with some companies we cover, earning commissions when readers purchase from our partners or share information about their needs. These relationships do not dictate our advice and recommendations. Our editorial team independently evaluates and recommends products and services based on their research and expertise. Learn more about our process and partners here.

Updated Sep 26, 2024

Why You Need to Worry About Employee Burnout

Employee burnout isn't just a personal issue — it affects your entire organization.

author image
Written By: Julie ThompsonSenior Writer & Expert on Business Operations
Verified CheckEditor Verified:
Verified Check
Editor Verified
Close
A business.com editor verified this analysis to ensure it meets our standards for accuracy, expertise and integrity.
Shari Weiss
Senior Editor & Expert on Business Operations
Business.com earns commissions from some listed providers. Editorial Guidelines.
Table Of Contents Icon

Table of Contents

Open row

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 suddenly aren’t completing projects, are falling short on goals or have gone quiet, you may be dealing with a staff that’s burned out. 

It’s critical to recognize these red flags early because employee burnout affects not only your bottom line but your team’s overall well-being. Burnout can cause lower confidence levels, decreased engagement and loyalty and lackluster customer service. It can also affect your ability to scale your business quickly. This article examines why you should worry about employee burnout, its potential causes and how to address it.

Why you need to worry about employee burnout

A company’s workforce is its No. 1 resource. If employees’ health and well-being are given utmost importance, motivation, engagement and productivity increase. However, when these priorities fall by the wayside, staffers may start to feel burnt out. As a result, your business is likely to experience the following worrisome issues.

1. 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 struggling with a demanding workload.

According to a FlexJobs survey, 56 percent of workers want flexibility in their workday to ward off burnout. They also want to see their workplaces encourage them to take time off and offer mental health days (both 43 percent). These benefits can boost work-life balance and lessen the likelihood of decreasing productivity. 

2. High turnover rate

Most managers tend to 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 Gallup, employees who are burnt out are 2.6 times more likely to be searching for a new job. Meanwhile, Limeade found that 40 percent of workers leave their jobs due to burnout — and many of them do so without even having another role lined up.

What are the implications of these findings? For starters, low employee retention and turnover contagion 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 it also drains valuable talent from an organization.

3. Low employee engagement

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

Unfortunately but not unsurprisingly, employee burnout significantly affects engagement rates. The 2022-2023 Aflac WorkForces Report says over half of American workers are experiencing at least a moderate level of burnout, with stats nearly the same as they were during the height of the pandemic in 2020. Consequently, employee engagement has plummeted.

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.]

4. Negative health impacts

Even long before the pandemic, a study by Harvard and Stanford professors found that burnout can cause $125 billion to $190 billion in healthcare costs related to psychological and physical problems. The research also found that work-related stress was contributing to 120,000 deaths annually. 

Perhaps needless to say, overworking can be taxing to both one’s mental and physical well-being. 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 like binge drinking and overeating.

Working too much can make a person sick and, with today’s high healthcare costs, this can translate into thousands of dollars in medical and insurance expenses for employers and employees. On top of that, when an employee is ill, they are more likely to take more sick days. Consequently, the rest of the team is forced to take on a larger portion of the workload — possibly fueling their own burnout and then the cycle continues.

Causes of employee burnout

Employee burnout can occur within any organization. Although there is a range of causes, many are directly related to the employee’s role within the company. 

Tasks outside of job scope

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

Miscommunication

Another cause of employee burnout is unclear expectations for each employee. If the employee is unsure of their place in the organization due to miscommunication, burnout is more likely to occur. Each employee should have an assigned role with duties that are not open to interpretation. Frequently communicate updates and changes so that managers and employees are on the same page.

Tension between colleagues

Issues between colleagues also commonly fuel burnout. For instance, if one of your employees is known as the office bully, co-workers may feel stressed and burned out from constantly dealing with that negative personality. 

Ineffective or micromanaging bosses can also contribute to employee burnout. Consider adding team-building activities to the work calendar not only to give staff a break from their typical work but also so everyone can get to know each other on a deeper level. This can go a long way toward improving manager and employee relations.

Social isolation

Personal issues could also be at the root of employee burnout. For instance, a team member may be socially isolated and not have a support system outside of work to rely on. The employee could also be not making work-life balance a priority. Encouraging employees to reach out if they are experiencing mental, physical or social health issues that may be impeding productivity could help mitigate problems before they worsen.

How to address employee burnout 

Lose the bias.

As a business leader, it can be easy to have favorites among your staff. Workers who are a cohesive fit for company culture or always perfect paperwork can set themselves apart. But both open and unconscious bias can lead to favoritism that negatively impacts employee productivity and loyalty — those who don’t feel “chosen” are more likely to be frustrated with their work. Endeavor to treat every single team member with the same level of respect and ensure your benefits are equitable across the company.

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

Play to their strengths.

Employees make or break a business’ success, so you should play to their strengths by providing a work environment that caters to their individual personalities as best as possible. Not everyone works the same. Some prefer to listen to music while others prefer to recenter their mind by walking outside. Offer work areas that accommodate both. 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.

Value quality over quantity.

Demanding more work than can realistically be done during the workday can create mental and physical health issues for workers. Adding unnecessary meetings, additional paperwork or tasks beyond the scope of their job can bring stress and frustration, especially if you have staffers skipping lunch, not taking breaks or complaining to each other about unrealistic work expectations. 

Instead, focus on quality over quantity. Stress to workers that how well they accomplish something is valued more than how much they achieve. After all, there is no point in amassing a large output if it’s poor quality. By favoring what gets done and how well over how much, you’ll help employees feel more fulfilled and appreciative of their company culture. They may also be more willing to improve processes, which can end up boosting productivity and efficiency without coming at the expense of burnout.

Show appreciation.

There are very few employees who dislike praise. Frequently giving your team a pep talk and congratulating them on a job well done goes a long way. Whether you give everyone a high-five in person, provide a financial reward or offer well-deserved time off, employees value organizations that treat them like a person. 

Making employees feel appreciated can counter the effects of burnout and transform your company culture. Recognize when your team went beyond 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.

Did you find this content helpful?
Verified CheckThank you for your feedback!
author image
Written By: Julie ThompsonSenior Writer & Expert on Business Operations
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.
BDC Logo

Get Weekly 5-Minute Business Advice

B. newsletter is your digest of bite-sized news, thought & brand leadership, and entertainment. All in one email.

Back to top