Employee Burnout Affecting More Than Just Productivity

Employee burnout is getting more prevalent, increasingly impacting their productivity–and their organization’s bottom line, according to O.C. Tanner’s 2020 Global Culture Report.

O.C. Tanner surveyed of 20,000 workers and leaders across the globe and found that 40 percent of employees are experiencing moderate-to-severe burnout. Employers are impacted: 95 percent of HR leaders admit burnout is hurting retention at their organizations, contributing to up to one-half of annual workforce turnover.

“Now, more than ever, employees are expected to do more with less. Burnout is a real and present threat,” the authors write. “After decades of being isolated to a small number of specific industries, many global organizations now realize that burnout is more pervasive and may be curbing their ability to succeed.”

Indeed, companies with moderate-to-severe burnout have a 376 percent decrease in the odds of having highly engaged employees, 87 percent decrease in likelihood to stay, 22 percent decreased work output and 41 percent decrease in the perception of the employee experience, according to the report.

O.C. Tanner also cites Gallup data, which found that burned-out employees are 23 percent more likely to visit the emergency room. Additional research cited found that burnout causes increased risk for Type 2 diabetes, coronary heart disease, gastrointestinal issues, high cholesterol and even death for employees younger than 45.

“We can’t all do what Dutch design firm Heldergroen does to prevent burnout at work: the company closes shop at 6 p.m. every day, and physically lifts the company’s desks up to the ceiling with steel cables,” the authors write. “The floor is cleared of furniture and the space is rented, for free, to the community as a dance floor, reception space, or yoga studio.”

There are many other ways to prevent burnout or at least lower burnout levels, including by giving employees more information, support and control over their work, according to the report. Employers should also aim to create “peak and microexperiences” that help employees feel connected to their organizations, supported and appreciated by their leaders and teams, clear about their goals and performance and listened to by their companies.

“Perhaps the most impactful thing you can do is change how leaders interact with their teams,” the authors write. “The many issues that cause employee burnout can be fixed with small changes in how your organization and leaders interact with employees on a daily basis.”