The financial consequences of employee burnout in Australia are frightening and alarming.
Employee Burnout has been recognised as an 'occupational syndrome' by the World Health Organisation (WHO). It is a health condition caused by the working environment and/or activities related to professional work.
As a business owner, with having a team or multiple teams that are just burnt out is not something to take lightly at all. This is going to impact your bottom line enormously.
What are some statistics that highlight the financial burden on your business having employees that are experiencing employee burnout?
Australian employees take 8.8 unscheduled days off per year. This costs employers approximately $5086.40 per employee per year. The financial consequences of employee burnout cannot be understated.
The current estimated cost of absenteeism to the Australian economy is approximately $7 billion each year, with the cost of presenteeism (not fully functioning at work because of medical conditions) being nearly four times more at almost $26 billion.
The Australian Human Resources Institute (AHRI) recently estimated that the cost of staff turnover in Australia is in the order of $20 billion. AHRI estimates the cost of replacing an employee is at least 75% of the employee’s annual salary and may be as much as 150% in some cases.
Research indicates that on-the-job productivity losses could account for up to 61% of the total cost borne by the employer due to employees suffering from chronic disease.
5% of employees call in sick on any given day. The most common reason staff ask for sick days is illness including colds and flu, headaches and gastro. 39% of businesses surveyed in 2017 stated absences related to stress, anxiety or depression had increased in the past year.
Australian employees take 8.8 unscheduled days off per year. This costs employers approximately $5086.40 per employee per year.
It has been demonstrated that 87% of employees consider health and wellness offerings when choosing an employer.
The Australian Institute of Health and Welfare’s 2010 report found that 96% of working age Australians had at least one chronic disease risk factor and 72% had multiple risk factors.
The current estimated cost of absenteeism to the Australian economy is approximately $7 billion each year, with the cost of presenteeism (not fully functioning at work because of medical conditions) being nearly four times more at almost $26 billion.
Research shows that businesses that do not invest in health and wellbeing programs are up to four times more likely to lose staff in the following 12 months.
Healthy employees are nearly three times more productive than employees with poor health.
The report Medibank Private 2005 The health of Australia’s workforce revealed the healthiest employees are almost three times more effective than the least healthy, with the healthiest employees working approximately 143 effective hours per month compared to 49 effective hours per month by the least healthy.
Employees with poor overall health status take up to nine times more sick leave than their healthy colleagues.
Global research has found that when employee health and wellness is managed well the percentage of engaged employees increases from 7% to 55%. This research also found self-reported creativity and innovation increases from 20% to 72%.
Research indicates that in organisations where workplace health is managed well, financial performance increased by more than 2.5 times.
The Australian Human Resources Institute (AHRI) recently estimated that the cost of staff turnover in Australia is in the order of $20 billion. AHRI estimates the cost of replacing an employee is at least 75% of the employee’s annual salary and may be as much as 150% in some cases.
Research indicates that on-the-job productivity losses could account for up to 61% of the total cost borne by the employer due to employees suffering from chronic disease.
A meta-evaluation looking at the economic return of worksite health promotions programs found on average: Reduction in sick leave absenteeism by 25.3%, Decrease workers compensation costs by 40.7%, Decrease disability management costs by 24.2% and Save $5.81 for every $1 invested.
Stress-related presenteeism and absenteeism are costing the Australian economy $14.81 billion a year. Stress-related presenteeism and absenteeism are directly costing employers $10.11 billion a year. 3.2 days per worker are lost each year just through workplace stress.
The financial consequences of employee burnout are alarming and disturbing.
Time is of the essence, it’s time to beat burnout in your business; so that your bottom line doesn't suffer anymore.
