The Economics of Burnout: Chronic Workplace Stress Is a Human Crisis and a Financial Risk
Burnout is a clear and costly threat to individual wellbeing and organizational success. However, employers can reduce risks to people and the bottom line by addressing the underlying causes of burnout and adopting proactive wellbeing strategies.
It is time for organizations to view burnout as more than an isolated problem affecting employees who lack resilience. Burnout is more than a personal problem. It is a growing workplace challenge that triggers a cascade of expensive consequences—disengagement, absenteeism, higher turnover, and rising insurance claims.
Chronic workplace stress, which the World Health Organization considers the main cause of burnout, is increasing worldwide. People are overwhelmed by heavy workloads, constant priority shifts, and pressure to keep up. Organizational change driven by artificial intelligence (AI) and corporate restructuring means team members are anxious about job security. Managers are feeling the weight of delivering growth while having fewer resources. And because stress worsens physical and mental health, organizations and insurers face mounting claims costs.
“Burnout is not simply stress; it’s not just fatigue or exhaustion. Burnout stems from specific, structural aspects of the workplace,” says Oliver Brecht, Vice President and General Manager of Enterprise Solutions at Workplace Options (WPO). “It’s driven by a chronic imbalance between job demands and job resources.”
