Why we’re getting the expensive problem of employee burnout — and how to fix it — all wrong
That constant fatigue you’re feeling? That which makes Monday mornings feel like climbing the Empire State Building in flip-flops?
It’s not just you — and it’s costing employers a fortune.
We hear a lot about worker burnout, but a new study from the American Journal of Preventative Medicine puts an eyebrow-raising price tag on it. It found that a worn-out employee can cost an organization $21,000 per year in lost productivity — meaning that for the average 1,000-person company, workforce disengagement and burnout could ring up to $5 million a year.
It would appear that despite the avalanche of wellness programs, well-stocked office pantries and RTO days, we’re still getting burnout — and the solutions to it — all wrong. Here’s why, and how to actually fix it.
We’re treating symptoms, not causes
Numerous companies have jumped on the wellness bandwagon, offering everything from meditation apps and yoga classes to resilience training and exotic trips. But those approaches often miss the mark because they focus on helping employees cope with burnout rather than preventing it.
“The problem with most of these well-intentioned solutions is their efficacy is uncertain and not sustained, and that’s because they systematically fail to address the root cause,” said Andrew Shatte, co-founder and chief knowledge officer at meQuilibrium, which specializes in talent resilience.
Adds Marissa Alert, CEO of MDA Wellness, which provides workplace wellness programs: “Companies have become more aware of burnout, but that awareness hasn’t translated into effectively addressing it.”
One-size-fits-all solutions don’t work
Organizations also frequently implement generic programs without understanding what’s actually driving burnout in their specific environment, according to experts.
“Companies often treat burnout with one-size-fits-all approaches,” Alert said. “In reality, burnout manifests differently across individuals, teams and organizations, requiring tailored solutions.”
And as Denise Graziano, CEO of management consultancy Graziano Associates, puts it: “Ask 10 employees and you may get 10 different responses.”
The power of recognition
While many solutions focus on managing workloads or offering wellness perks, a surprisingly effective tool is often either overlooked or misunderstood: recognition.
“The solution is actually very simple: acknowledging and appreciating your people,” said Brenda Pohlman, practice leader at the employee recognition program Workhuman.
The data backs that up. Employees at organizations that strategically invest in recognition are 73% less likely to always or very often feel burned out, according to Workhuman’s research. Meanwhile, frequent recognition has been linked to significant cost savings in productivity, absenteeism and safety incidents.
How to shake things up — for real
Experts lay out several approaches that go beyond superficial fixes, among them redesigning work, not just adding more programs.“ This could look like determining which projects to pause or eliminate, preventing the chronic stress accumulation that leads to burnout,” MDA Wellness’ Alert said.
Companies may also want to look at creating a culture of recognition and gratitude. “The key to tapping gratitude as an antidote to burnout is giving employees a framework to express it in easy and meaningful ways and making it part of your workplace culture,” Pohlman said.
The benefits flow both ways. “Not only do recognition recipients benefit from the experience, but gratitude giving matters too,” she said. “The most significant benefits of workplace recognition are experienced by employees who don’t just receive recognition themselves, but also express gratitude to others.”
Pohlman offers a vivid example: Imagine having a tough day at work and opening a social feed to see that you were recognized by a coworker for a project you worked very hard on. “These are reminders that your work has real impact and meaning, and that a single moment of appreciation can completely turn your day around,” she said.
Employers should also aim to create clear boundaries. “With devices within instant reach, employees often feel the need to be available 24/7,” said Gareth Hoyle, managing director at marketing agency Marketing Signals. “But never switching off from work is guaranteed to increase stress levels and lead to burnout.” As a solution, he has added a permanent note to his email signature making it clear he doesn’t expect an instant response from the recipient.
Then, there’s the importance of management leading by example. Workers should keep an eye out whether their company has bosses who themselves are modelling a healthy work-life balance, Hoyle advises. “If your employees see that leaders are taking breaks and truly switching off after work, your employees will feel more comfortable doing the same,” he said.
As Workhuman’s Pohlman puts it, “When recognition is done right, it’s not just a win for employees — it’s a game-changer for the company, fueling success from the inside out.”