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How Corporate Cultures Fuel Burnout

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In my work advising organizations, I’ve observed a disturbing trend that’s about to reach critical mass. In my group coaching sessions with director and VP-level executives, conversations that once centered on growth and leadership development now focus overwhelmingly on protecting vulnerable workers and managing with limited resources. Burnout is not just a human resources challenge—it’s becoming an existential threat.

The statistics back up my observations. The World Health Organization has classified burnout as a workplace disease since 2019, and its prevalence is only increasing. In a recent Society for Human Resource Management survey, nearly half the surveyed U.S. employees reported feeling burned out at work. Alarmingly, research shows that managers are now more likely to report burnout and low engagement than those they supervise. This is likely due to heightened pressure from corporate restructuring— mergers, acquisitions, and downsizing—that has drastically reduced their ranks.

These trends show no signs of slowing; with the incoming administration expected to be far more friendly towards merger and acquisition activity, managers may soon face even greater workloads with fewer resources. Based on my experience, here are the critical areas leaders need to focus on as we approach 2025.

What is Burnout?

Burnout is a state of physical, mental, and emotional exhaustion that develops from prolonged periods of excessive stress and overwork. While stress is typically a reaction to an acute situation and resolves once the trigger subsides, the effects of burnout are far more damaging and pervasive. Often, recovering from burnout requires interventions other than rest.

The World Health Organization defines burnout in the workplace as including three critical components:

  1. Energy depletion or exhaustion
  2. Increased mental distance from one’s job, or persistent feelings of negativism or cynicism
  3. Reduced professional efficacy

For organizations, the consequences of burnout extend beyond the individual. Employees suffering from burnout are more likely to quit, experience higher absenteeism (a more than 67% increase in absences, according to one study), and develop long-term health problems like hypertension, Type 2 diabetes, and depressive disorders. This translates to elevated turnover rates, reduced productivity, and mounting healthcare costs.

What Organizations Can Do: Shifting the Narrative

Most discussions around burnout focus on individual remedies such as work-life balance, boundaries, and self-care. While these are essential, addressing the systemic roots of burnout requires organizational change and leadership accountability. Here are actionable strategies organizations can implement:

Optimize Workflow Planning and Management

Leaders often underestimate the impact restructuring will have on daily operations. Managers and HR professionals must develop skills to balance workloads amid shrinking teams. Key steps include:

  • Radical Prioritization: Create a detailed list of all projects and identify which can be postponed or eliminated.
  • Listening to employees: Provide safe spaces for staff to express concerns about overwhelming workloads.
  • Reevaluating processes: Ensure that long-standing practices and projects remain relevant and valuable. Nothing should be “untouchable” unless proven essential in the current work environment.
  • Safeguarding innovation: Avoid cutting back on creativity and strategic initiatives that drive growth.

Build and Maintain Trust

Trust in leadership during periods of change is crucial. Gallup reports that employees with high trust in leadership are 4.5 times more likely to be engaged and 62% less likely to experience burnout.

Emphasize Transparency and Communication

Build trust by being consistent, fair, and empathetic. Frequent, transparent communication is non-negotiable in times of uncertainty. Even minor updates help build trust and ensure employees feel informed and included. Leaders who are forthcoming—even about challenges—foster a culture of security and mutual respect.

Advocate and Prioritize

Rigorously assess your team’s capacity before committing to new projects. Advocacy isn’t just about saying “no” to excessive demands—it’s about ensuring sustainable workloads and demonstrating care for your team’s well-being.

Revisit Workplace Culture

Significant structural changes demand a reassessment of organizational culture. Culture is not static; it must adapt to reflect new leadership dynamics and business goals.

Move Beyond the Superficial

Leaders sometimes turn to social events or “fun committees” to boost morale quickly. While these activities can foster camaraderie, they are not substitutes for addressing underlying drivers of burnout. Instead, focus on meaningful engagement, such as career development, recognition programs, and workload fairness.

Elevate HR

Evolve your HR function from transactional to transformational. Make HR leaders true business partners empowered to advocate for systemic changes and champion workforce well-being. This includes designing burnout mitigation strategies, coaching leaders, and embedding wellness into the organizational framework.

Remember, burnout is not just an individual challenge: It’s a systemic issue that calls for organizational vigilance and proactive leadership. Organizations can create environments where employees thrive rather than merely survive by focusing on workload management, fostering trust, and embedding cultural shifts. Leaders who prioritize these strategies will not only safeguard their teams from burnout but also position their organizations for sustainable success.

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