The cost of ignoring Burnout – Why leaders need to act

Burnout has reached alarming levels, yet many organisations still fail to address it effectively. Recent research shows that job burnout is at an all-time high, with two-thirds of employees suffering from it in 2025 (Forbes). In Australia, a survey by Robert Half found that four in five office workers experience burnout, and nearly a quarter don’t tell their managers (Information Age). This crisis is more than an HR issue, it’s a leadership responsibility.

The science behind Burnout

Burnout is not just about feeling tired or overwhelmed; it’s a chronic state of stress with serious physiological and psychological consequences. Stress triggers the release of cortisol and adrenaline, which, in short bursts, can enhance performance. However, prolonged stress leads to exhaustion, cynicism and decreased personal accomplishment - hallmarks of burnout.

Left unchecked, burnout can impact mental health, increasing the risk of anxiety, depression and other mood disorders. Chronic stress disrupts neurotransmitter regulation, affecting serotonin and dopamine levels, which are essential for emotional resilience and overall wellbeing.

The root causes of Burnout

Burnout is not just about people working too hard; it’s a structural issue within organisations. Key drivers include:

• Unmanageable workloads – Teams frequently report that they have more work than time to complete it.
• Insufficient staffing – Labour shortages increase pressure on existing teams.
• Lack of psychological safety – Many people feel uncomfortable voicing concerns about stress.
• Constant workplace change – Employees now face up to 11 major changes per year, up from just two in 2016 (Gartner).
• Return-to-office mandates – Research suggests that forced RTO policies may worsen burnout for those who benefited from remote work (Forbes).

The cost of Inaction

Ignoring burnout has severe consequences for both individuals and organisations, leading to a cascade of negative outcomes that extend far beyond exhaustion. For individuals, prolonged burnout can result in serious physical and mental health issues, including chronic fatigue, anxiety, depression and even increased susceptibility to illness due to a weakened immune system. This can also lead to:

• Decreased productivity – Burnt-out employees are disengaged and less effective.
• Higher absenteeism and turnover – Unaddressed burnout leads to increased sick leave and resignations.
• Reputational damage – Toxic workplace cultures drive away top talent and impact employer brand.
• Legal and compliance risks – Burnout-related mental health claims are on the rise.
  In the long run, failing to address burnout creates a culture where stress is normalised, innovation is stifled and both employee morale and company success suffer.

What leaders can do now

Leaders play a crucial role in preventing burnout, not just by implementing policies but by shaping the workplace culture that determines how stress is managed. Leadership isn’t just about delivering results, it’s about ensuring that people can sustain performance without sacrificing their wellbeing.

A critical first step is creating an environment where employees feel safe discussing stress, workload and mental health challenges without fear of stigma. Too often, burnout is dismissed as a personal failing rather than a systemic issue. Leaders who openly acknowledge the pressures their teams face and take meaningful action to address them build trust and engagement.

Beyond culture, structural change is essential. Organisations must rethink how work is designed, identifying unnecessary bureaucracy, setting realistic deadlines and ensuring that teams have the resources they need. Employee wellbeing should be embedded into operational strategy, not treated as an afterthought or a box-ticking exercise. Leaders should also champion flexibility, recognising that rigid work structures often contribute to burnout rather than alleviating it.

Finally, leadership development itself must evolve. Too many leaders have been trained to manage performance but not people. Supporting managers with education on stress management, psychological safety and effective workload planning is key. The best leaders aren’t just those who drive results but those who create an environment where people can do their best work without burning out.

Key actions leaders can take include:

• Create a culture of open conversations – Normalise discussions about workload and mental health.
• Prioritise effectively – Reduce low-value work and set realistic deadlines.
• Model healthy behaviours – Leaders should lead by example, taking breaks and setting boundaries.
• Invest in flexible work arrangements – Hybrid and four-day workweek trials have shown promising results in reducing burnout.
• Provide meaningful training and development – Employees need learning opportunities that genuinely support their wellbeing, not just tick-box compliance exercises.

Building resilience – Strategies for coping with stress

Understanding burnout is only part of the solution, building resilience is key to preventing and mitigating its effects. Evidence-based strategies include:

• Mindfulness meditation – Practising mindfulness helps individuals regulate emotions, manage stress and develop greater cognitive flexibility.
• Stress management techniques – Relaxation practices, such as deep breathing and progressive muscle relaxation, alongside cognitive-behavioural strategies like reframing negative thoughts, can improve resilience.
• Self-care practices – Proper nutrition, exercise, sleep hygiene and social connections play a crucial role in preventing burnout and supporting long-term wellbeing.

Burnout isn’t just an individual struggle, it’s a systemic issue that requires leadership-driven solutions.
At Enmasse, we help organisations build healthier, more resilient workplaces. Get in touch to explore how our evidence-based training and wellbeing programs can support your team.

references:
https://www.forbes.com/sites/bryanrobinson/2025/02/08/job-burnout-at-66-in-2025-new-study-shows/
https://ia.acs.org.au/article/2024/burnout-at-alarming-levels-in-australia-report-finds.html