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Are you feeling exhausted, overwhelmed, and disengaged in your job? These feelings may indicate that you’re experiencing burnout, a form of chronic stress that can lead to significant emotional and physical fatigue, as noted by the Mayo Clinic.
Burnout not only impacts individual health—potentially contributing to serious issues like heart disease and sleep disorders—but also has profound financial implications for organizations. A recent study published in the American Journal of Preventative Medicine has estimated that employee burnout in the United States costs employers a staggering $4,000 to $21,000 annually for each impacted worker, largely due to lost productivity and increase in absenteeism.
The research provides a breakdown of these costs, indicating that nonmanagerial staff incurs approximately $4,000, while managers face about $10,000, and executives even more, at over $20,000 each. In a hypothetical organization employing 1,000 individuals—of which 88% are nonmanagerial, 10% are managers, and 2% are executives—burnout could collectively cost the business roughly $5 million annually, assuming widespread impact.
In a press statement, Bruce Y. Lee, who led the study and serves as a professor at the CUNY Graduate School of Public Health and Health Policy, emphasized the significance of this research, stating, “Our model quantifies how much employee burnout is hitting the bottom line of companies and organizations. This insight can empower organizations to enhance their focus on employee well-being, ultimately reducing costs while improving profitability.”
The computational model utilized in this study, developed by the Public Health Informatics, Computational, and Operations Research team at CUNY, simulates various stages of employee engagement. Throughout the simulation, employees encounter workplace stressors—such as escalating workloads and extended hours—that can lead to burnout. When experiencing burnout, employees exhibit significantly diminished productivity.
Furthermore, findings revealed that the financial toll of burnout can be as much as 2.9 times higher than the average costs of health insurance and up to 17.1 times the expenses associated with employee training programs.
Highlighting the widespread concern of employee burnout, a study conducted by SHRM in April 2024 indicated that 44% of U.S. workers reported feelings of burnout. Additional research from the American Psychological Association identified that burnout can stem from factors such as insufficient support, lack of recognition or rewards, heavy workloads, extended work hours, and negative workplace relationships.
Strategies to Counteract Burnout
According to the Harvard Business Review, symptoms of burnout can manifest as decreased performance, missed deadlines, and an increase in mistakes. To combat burnout, employees are encouraged to minimize job-related stressors, prioritize self-care, and cultivate supportive work relationships.
From the perspective of employers, the research advocates for proactive measures, such as offering mental health support and carefully managing employee task distributions. Implementing flexible working conditions, conducting stress management workshops, and providing avenues for professional growth are among the strategies recommended to foster a healthier work environment, as advised by the conflict resolution consultancy, Pollack.
As the issue of burnout continues to escalate within the workforce, addressing its root causes and fostering supportive environments becomes increasingly crucial for both employee well-being and organizational success.
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