A detailed look at why employee burnout can be so detrimental to businesses
To elaborate just how serious an issue it can be, here are three ways housing burnt-out employees can be detrimental to businesses.
The taboo surrounding mental health issues is finally dissipating.
Thanks to greater visibility of emotional wellbeing concerns, this has led to an increased acceptance of the factors surrounding mental health – something that has been particularly noticeable in the world of business; recent figures from Mind show that 64% of employees feel their workplace has an open attitude towards discussions about mental health.
While this is a step in the right direction, many businesses still currently face a continuing dilemma with employee wellbeing, with burnout one such issue to consider.
Recently classified as an “occupational phenomenon” by the World Health Organisation, understanding the effects of burnout and how to combat it effectively has now become increasingly important in light of the coronavirus pandemic.
To elaborate just how serious an issue it can be, here are three ways housing burnt-out employees can be detrimental to businesses.
Burnout decreases the quantity & quality of work
The effects of a positive work environment have a direct correlation on employee output, with happy workers said to experience a 12% increase in productivity on average.
Studies have also found that burnout has dramatic effects on workplace productivity, not only impacting the quantity of output from employees, but also the quality of the work completed.
Back in 2018, a Stanford University study looking at burnout in the health care sector found that, of the 6695 participants, 54.3% of doctors felt burnt out, with 6.5% having suicidal thoughts and 10.5% admitting to making a major medical mistake three months prior to the study.
Disturbingly, 3.9% of participants also reported a poor or failing patient safety grade in their primary work area. Therefore, while the health industry may have much higher stakes than most, this study highlights some of the more alarming aspects of employee burnout.
What’s more, while the link between workplace stress and physiological health problems is already well established, longitudinal studies have established a deeper understanding of the connections between workplace environments and mortality.
In findings from a 7-year study by Gonzalez-Mulé & Cockburn, individuals in low-control jobs with high job demands demonstrated a 15.4% increase in the odds of death versus those in positions with low job demands. Conversely, those in high-control and high demand jobs displayed a 34% decrease in mortality when compared with high-control individuals with low job demands.
As a consequence of such demand, the stress you feel as an executive will age you. Here are some other side effects from feeling constantly stressed at work:
- Low energy, demotivation and a ack of inspiration to come up with new ideas
- Frequent colds, illnesses and infections
- A loss of libido or desire for human connection
- Insomnia, chest pains, and aches and pains
The physical symptoms of burnout can also negatively affect the number of sick days taken by employees which, in turn, can greatly impact long-term productivity goals. In other words, since employees will be taking more sick days, they’ll get less work done as a result.
Burnout has a huge financial impact
The emotional effect of burnout on employees is glaringly obvious, but many companies have traditionally eschewed expanding human resources facilities over fears that such spending would reduce profits. However, results from a study by Deloitte have shown the opposite to be true.
In this work, researchers estimated that the financial burden of poor mental health to UK companies ranged between £42 billion and £45 billion per year ($54.78 billion to $58.69 billion USD), with absence costs at around £7 billion ($9 billion) and presenteeism costs at approximately £27.9 billion ($36.4 billion USD).
What’s more, these figures represent a 16% rise from the same figures released back in 2017. Therefore, employers willing to invest in mental health interventions could actually save money as a result.
Viewing burnout as a corporate issue as opposed to an individual one could be key to unlocking the potential profits above as well. Back in 2017, the Harvard Business Review discussed the idea that poor organizational structures can often be the root cause of higher burnout rates and that companies facing such dilemmas were often weak in similar areas. As such, a comprehensive, employee-centric approach to procedural architecture may be the only appropriate way to proceed.
Burnout affects customer satisfaction
Brand loyalty has always been vital but, in the current climate, it’s more important than ever.
Therefore, while focusing on customer satisfaction is important from a marketing perspective, research has found that burnt-out employees could actually undermine efforts to create a positive client experience.
In an analysis by Shoshan & Sonnentag, their research found that individuals exhibiting depersonalization responses garnered negative perceptions of employee and organization services from customers.
In addition to this, studies into consumer behavior have shown that customer satisfaction leads to positive word of mouth and repeat business, thus compounding the effect of burnout on trade generation and conversions for companies.
Final thoughts…
With employee burnout becoming more and more prevalent, there is little doubt that there will be a knock-on effect for businesses as a whole.
As has been widely discussed already, the adverse effects of burnout are clear for all to see and the benefits of implementing proactive preventative strategies and practices are supported by current academic research.
Therefore, in order to achieve continued success in all facets of business, addressing employee burnout appears to be imperative – and sooner rather than later.
Gemma Hart is an independent HR professional working remotely from as many coffee shops as she can find. Since graduating in 2013, Gemma has gained experience in a number of HR roles but now looks to grown her personal brand and connect with leading professionals in the field.
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