According to LinkedIn’s “U.S. Workforce Confidence Index,” “Four in ten workers in the U.S. report being burned out.” Burnout has recently been described as an epidemic of epic proportions, which the American Medical Association has described as organizational, not personal. According to World Health Organization, burnout results from workplace stressors, such as job insecurity, workload, lack of managerial support, tight deadlines, long hours, conflicts with co-workers and other stressors that have not been successfully managed.
Stress and burnout are related, but they are not the same. Many people experience workplace stressors almost daily. These stressors may make some feel anxious and may take a physical toll. For those affected, time off might be needed and will most certainly help.
But with burnout, a transition line is crossed. It becomes challenging for an employee to put in any effort. Feelings of hopelessness are overwhelming. Motivation is lost. Normal recovery tactics (time off via a day, weekend or vacation) do not end feelings of complete exhaustion.
Recognizing burnout is crucial. Those experiencing it may exhibit signs such as moodiness, irritability, indecisiveness, lack of motivation, physical and mental exhaustion, and sleep deprivation. These symptoms affect the individual’s health and pose a significant risk to the organizations they work for. These risks are not just financial. It is disruptive and expensive when someone leaves a job and needs to be replaced. But a company’s reputation is also impacted: Word on the street is a real factor when a company becomes known as a pressure cooker.
Specific industries experience higher levels of stress than others. These include (and are certainly not limited to) the health care, education, social work, hospitality, technology, finance and legal industries, with each attempting to handle stress within the workforce differently. There are lessons to be learned from each of them.
With respect to health care and physicians, according to Smita Agarkar, M.D., CPE service chief and quality and patient safety chair at Gracie Square Hospital and an associate professor of clinical psychiatry at New York-Presbyterian Weill Cornell Medical Center, “’The Saving Time Playbook,’ by American Medical Association, provides strategies to organization leaders to enhance processes and implement time-saving workflows for physicians. And that same approach can be applied to other areas and disciplines. Some strategies they recommend include identifying opportunities to de-implement unnecessary processes and protocols at the organizational level, expanding teams and sharing work with broader teams, utilizing core team-based workflows and gaining organizational leadership support.”
Regardless of the industry, addressing stress and burnout requires a companywide effort. Addressing stress and burnout should not fall solely on the individual experiencing it. Instead, it must be a companywide effort that includes ongoing managerial training to recognize signs of employee distress. Managers, the executive team and the board should be educated and socialized to identify mental health issues and reduce the stigma associated with them, as this is crucial for employee well-being. They must develop heightened awareness to identify potential triggers their team members may be experiencing. Consistent training is essential to maintain these skills.
This is not just an HR issue resolved through an employee assistance program, a hotline, access to online counseling or emails noting what one’s insurance will cover. Recognition of stress or burnout to ensure wellness among the team — if not the organization — must be acknowledged and supported at all levels. It needs to emanate from the top down with no judgment. Recognition and support must be for every position across a company or firm, from the highest salary to the lowest.
American Psychological Association refers to this as “mental health first aid training.” Just as a lifeguard at a community pool is focused on preventing an accident or crisis, employees can help their colleagues in the office experiencing a mental health challenge. They need to learn how to pick up on and respond to these issues and understand that the problems and triggers may vary across departments at a company. However, when this type of program is successfully implemented, everyone at a company succeeds.
The Role of the Board
By proactively addressing stress and burnout, boards fulfill their fiduciary duties and build a healthier, more resilient organization positioned for long-term success. This is why:
- Burnout can reduce productivity and increase errors, directly impacting a company’s bottom line.
- Turnover due to burnout can be costly. A workplace known for high stress and burnout also becomes less attractive to potential new hires, making it harder to attract top talent.
- Persistent burnout can erode company culture, leading to decreased morale and increased internal conflicts.
Directors have a duty of care to ensure that working conditions do not jeopardize employees’ health and well-being. Ignoring burnout could expose the company to potential legal liabilities, including claims related to unsafe working conditions or inadequate mental health support.
Sustainable growth requires a motivated and creative workforce. Chronic stress stifles innovation and hinders strategic thinking, which is critical for maintaining a competitive edge.
Proactively addressing these risks through better support, clear expectations and a healthy work-life balance is crucial for long-term sustainability.