As the Global Burnout Crisis Grows, It’s Time for Business Leaders to Act

A World Health Organization (WHO) estimate reveals that 280 million people globally suffer from depression, and many more experience anxiety. As staff at organizations worldwide labor under increased stress, exacerbated by the pandemic, mental well-being in the workplace is emerging as a key concern for managers.

Occupational burnout, which leaves employees disillusioned, alienated and unhappy, has become an increasingly common complaint from staff under pressure from dehumanized work practices. In the US, burnout has led to nearly 120,000 deaths and nearly $190 billion in spending each year, and it has become so damaging and widespread that the WHO recognized it as a mental health condition in 2019.

At the heart of this issue is the fact that mental health is still both stigmatized and misunderstood. Only 16.5% of individuals with depression worldwide seek help, and stigma around mental health is a primary reason. One in two US residents will experience mental health issues in their lifetime, according to the Centers for Disease Control and Prevention, underscoring the fact that being “mentally well” or “mentally ill” isn’t a fixed state, but something that can fluctuate over time.

Mental health is key to our well-being, and we can’t be truly healthy without it. Depression and anxiety are leading causes of disability, costing $1 trillion per year in lost productivity in the US alone. In the UK, the Office for National Statistics reveals that 12.7% of all sickness absence days can be attributed to mental health conditions.

It is therefore crucial that businesses educate themselves about mental health so that they can better understand the individual needs of each employee.

"It's a far more sinister perspective than if you were to have a physical illness, even though the principles of self-care and prevention, seeking help and medicine where needed and then managing the recovery are exactly the same," Bellostas Muguerza continues.

Organizations are typically poor at identifying mental health issues among staff and most fail to provide adequate and safe channels for employees to discuss their mental state. Mental health stigma can develop when misinformation, fear and outdated assumptions combine. In order to break down this stigma, employers and employees need to understand how these elements lead to adverse outcomes for everyone.

In the UK, nearly nine out of 10 people with mental health conditions say that stigma and discrimination have negatively affected their lives. Discussions about mental well-being are often considered taboo, and many employees feel that the workplace is not the right environment for them to talk about these issues, leaving anxiety and unhappiness to fester without open dialogue and workplace support. Myths about mental health—that is a sign of weakness; something individuals must cope with on their own; the sole fault of upbringing; or that certain conditions are only seen at particular ages or in particular genders—need to be dispelled. Some firms, including Kearney, are appointing employees as “mental health first aiders”—people who staff can talk to about mental health issues.

Many businesses are placing promotion of workplace well-being at the heart of their purpose strategies, as Kearney found in recent research conducted for its Purpose Gap survey, which shows that environmental awareness, social inclusion and mental well-being are common purpose drivers. However, it is important that leaders don’t view purpose as a trade-off between profit and staff well-being; workplace well-being and business performance go hand in hand. The question is how best to enhance employee well-being for the benefit of all stakeholders: the staff, leaders, shareholders and customers.

Overcoming the well-being crisis may require an overhaul of an organization’s entire culture and internal operations. While improving material conditions such as pay and hours are a key part of the solution, employers also need to look at wider elements of well-being. If employees fail to understand the significance of their jobs or perceive them as just a way of making money with no greater purpose, this can trigger a downward spiral of cynicism, alienation, poor performance and high turnover, and can also impact recruitment, as talented staff shun organizations with a reputation for burnout. The solution is to build a culture of purpose beyond profit to embed meaning in day-to-day activities, and to find effective ways to avoid burnout.

Businesses must build a greater sense of meaning into the workplace by creating a sense of joy and exhilaration. Kearney Managing Partner and Chairman Alex Liu believes that translating some of the principles of team sports into business environments can enhance moments of joy at work, making the workday more worthwhile. With the right environment and attitude, the exhilaration of winning in sports can be experienced in the world of work.

In sports, players thrive on the ecstasy of playing well and winning, and this can be replicated in the business world by promoting the three parts of the joy-at-work equation, says Liu: “The foundation must be a culture dedicated to the human experience of harmony, acknowledgment and impact. In short, joy.”

This approach can be enhanced by replicating the sports model and making sure everyone knows the role they play in business activity, so wins and losses are shared together as a team. Another vital lesson from team sports is that team captains must lead the way; leaders must be role models. If they work long hours and are obsessed with profit above all else, this will set the standard for the organization—but a C-suite that leads by example and cares for its own mental well-being, aware of the dangers of burnout, will set the winning pace for the entire company.

Making work more meaningful for employees is an important way to head off occupational burnout. When staff are just going through the motions and working solely to get paid, depersonalization and alienation can easily set in. When work is joyous, uplifting and worthwhile, and staff can see the positive impact of their activities on humanity, this can motivate and inspire.

Excelling at employee well-being is essential in creating a purpose-led organization that attracts and retains talent, connects with customers and builds success for all its stakeholders.