How Much Money Is Your Business Losing With Having A Business That Has Entrenched Employee Burnout?
Employee burnout is a growing problem in many organisations, and it can have a significant impact on a company's bottom line. Burnout is defined as a state of emotional, physical, and mental exhaustion caused by prolonged stress, which results in a decline in job performance and satisfaction.
When employees experience burnout, it can lead to increased absenteeism, lower productivity, and decreased motivation, which costs businesses a significant amount of money. In this article, Jake will explore the financial impact of employee burnout on businesses and the steps that organisations can take to prevent it.
According to a study conducted by the Harvard Business School, employee burnout costs businesses an estimated $125 billion to $190 billion in healthcare spending annually. This figure only accounts for direct healthcare costs and does not include other indirect costs such as absenteeism, reduced productivity, and turnover. When these costs are factored in, the true cost of burnout to businesses is likely much higher.
One of the most significant costs of employee burnout is absenteeism. Burned-out employees are more likely to take sick days or other types of leave, which can result in significant costs for businesses. According to a study conducted by the National Safety Council, absenteeism costs businesses an estimated $225.8 billion annually in lost productivity.
Burnout can also lead to reduced productivity. When employees are burned out, they may feel overwhelmed and unable to keep up with their workload, which can result in a decline in productivity. According to a study conducted by Gallup, disengaged employees cost businesses an estimated $450 billion to $550 billion in lost productivity annually.
Employee burnout can also lead to increased staff turnover.
When employees are burned out, they may feel disengaged from their work and less loyal to their employer, which can result in higher turnover rates. According to a study conducted by the Work Institute, it costs businesses an estimated 33% of an employee's salary to replace them. This figure includes direct costs such as recruitment, training, and onboarding, as well as indirect costs such as lost productivity and reduced morale.
