Addressing Employee Burnout – How to Get it Right

Employers are investing unprecedented resources in employee mental health and well-being. Yet with burnout levels hitting all-time highs, organizations are often unsure whether they are making a difference. The latest research from the McKinsey Health Institute (MHI) suggests that, with the right approach, they can. The article is part of a flagship initiative to convene leading employers globally around the urgent priority of mental health.

One in four employees report symptoms of burnout. They may show signs of extreme tiredness, reduced ability to regulate cognitive and emotional processes, and mental distancing. Left untreated, these symptoms impair performance and lessen engagement at work. Workers who feel higher levels of burnout are also six times more likely to leave their jobs within the next three to six months.

The occupational phenomenon of burnout is driven by a chronic imbalance between job demands (such as workload pressure and poor working environment) and job resources (for example, job autonomy and supportive work relationships). As COVID-19 has exacerbated long-standing corporate challenges to employee health and well-being—most crucially to mental health – we have seen sharp increases in the levels of burnout, depression, and anxiety experienced by workers worldwide. Despite many employers increasing their focus on mental health and well-being, our research reveals that many employees continue to report high rates of burnout.

The situation in Asia-Pacific reflects what is happening globally. Despite 83% of Australian human resource decision-makers in our MHI survey citing mental health as their top priority, 28% of employees are reporting burnout symptoms. The figures are higher in India with 38% of employees reporting burnout; while it is 31% and 23% respectively for Japan and China.

Long Days

Employers may pay a high price for failure to effectively address those workplace factors that strongly correlate with burnout. A growing body of evidence sheds light on how burnout may lead to costly organizational issues. Unprecedented levels of employee turnover—a global phenomenon—make these costs more visible. Hidden costs to employers include lower engagement and decreased productivity.

It is tempting to think of employee mental health, well-being, and burnout as personal issues. That’s why most companies have responded to rising employee distress by offering resources focused on individuals, such as wellness programs.

However, the findings in our global survey and research are clear. The most powerful drivers of burnout are systemic factors, such as imbalances between demands and resources, a lack of individual autonomy, and negative work environment. In all 15 countries and across all dimensions assessed in the latest MHI report, experiencing toxic workplace behavior by co-workers or supervisors was the biggest predictor of an employee’s burnout symptoms and intent to leave by a large margin —predicting more than 60% of the total global variance.

Rethinking the Workplace

Taking a systemic approach means addressing both toxic workplace behavior and redesigning work to be inclusive, sustainable, and supportive of individual learning and growth. Fostering leader and employee adaptability skills is crucial. A systemic approach requires rethinking organizational systems, processes, and incentives to redesign work, job expectations, and team environments. It means leaders “walking the walk” and supporting their people to do the same by tailoring interventions to the needs and values of the employees, the organization, and the local culture.

High rates of burnout are a powerful warning sign that the organization—not the individuals in the workforce—needs to undergo meaningful systematic change. As an employer, you can’t “yoga” your way out of these challenges.

We see a parallel between the evolution of global supply chains and talent. Many companies optimized supply chains for just-in-time delivery, and talent was optimized to drive operational efficiency and effectiveness. As supply chains come under increasing pressure, many companies recognize the need to redesign and optimize for resilience and sustainability. The same principles apply to talent.

The factors associated with reducing employee burnout (including organizational-, team-, and individual-level factors) are numerous and complex. Addressing root causes as opposed to remediating symptoms is a huge challenge. But the upside for employers is significant -- including a greater ability to attract and retain valuable talent over time.

Focusing on toxic workplaces and behaviors while creating an inclusive work environment are important first steps. Neither is straightforward, although certain proven approaches can act as valuable cornerstones. These include covering how individuals treat others as part of their performance assessment and implementing systems across the organization to address and minimize both conscious and unconscious bias.

Individual growth, learning, and development programs play their part as well. Employers who double down on talent redeployment, mobility, reskilling, and upskilling tend to see improvement across a range of metrics. Offering lateral career opportunities is a far more effective way of retaining employees than promotions. Investing in employees’ capabilities can drive financial returns, is often cheaper than hiring, and signals to employees that that they are valued and have an important role in the organization.

Workplace Support

Creating space for senior leaders to describe their own mental health challenges in non-stigmatizing language can help remove shame and promote a psychologically safe culture. Many employers now provide access to mental health services, but research shows that many employees find it challenging to access those services. For example, Singapore’s Association of Small and Medium Enterprises reported in 2020 that over 86% of employees reported not seeking help for mental ill-health because of perceived stigma. Leaders play a critical role is dismantling these negative beliefs and promoting greater acceptance.

Expanding childcare, nursing services, or other home- and family-focused benefits is another strategy that could help reduce stress and retain valuable employees. In a previous survey, 45% of respondents who had left their jobs cited the need to take care of family as an influential factor in their decision. A similar proportion of respondents considering quitting also cited the demands of family care.

Despite the growing momentum toward better employee mental health and well-being, we’re still early on the journey. We don’t yet have sufficient evidence to conclude which interventions work best for whom and when. Furthermore, our understanding of why these interventions work and how they affect return on investment is still under development.

Nevertheless, employers who take the time to understand the problem at hand—and pursue a preventative, systemic approach focused on underlying causes instead of surface-level symptoms—will be better positioned to attract and retain valuable talent. With collaboration and shared commitment, employers can make a meaningful difference in the lives of their employees and the communities in which they live.

-- Kana Enomoto is the director of brain health for the McKinsey Health Institute (MHI) based in Washington DC, while Alistair Carmichael is an Associate Partner and regional leader of MHI based in McKinsey’s Sydney office.