No one could say that HR teams are on the back foot when it comes to employee wellbeing. In fact, four in five HR leaders now report that mental health and wellbeing is a top priority for their organisation1. In spite of this, employee burnout is widespread with more than a quarter of Australian employees (28%) experiencing burnout symptoms to some degree2.
So how can HR leaders address this disconnect between their actions and the outcomes for their workforce when it comes to wellbeing? In this article we explore key insights that can help HR leaders rethink their solutions and be more effective in tackling employee burnout.
1. Australian employees are putting their wellbeing first
Employee burnout is not new, but the importance employees place on wellbeing is growing. Recent research tells us 90% of workers now say their physical and mental wellbeing is just as important as their pay – and that’s during a cost-of-living crisis3.
It’s also important to understand that burnout doesn’t just come from working long hours or being under pressure at work. A more expansive view on why people experience burnout can help HR leaders take a closer look at the factors at play in their own organisation – for example not feeling a sense of purpose or value can lead to feeling more worn down by work.
“We’re experiencing a material shift in what workers think about work. I’ve never seen it in my 30 years in talent. People are saying I’m not going to live like that anymore. This is revolutionary.”
Rebecca Houghton, Founder and CEO, BoldHR
2. Employee burnout is a systemic issue
When exploring the root causes of burnout it can be tempting to blame the pandemic. While the pandemic did blur the lines between work and home life for some, the main causes of burnout go deeper than a rapid change in working environment and patterns.
Recent research by McKinsey across 15 countries, including Australia, found toxic workplace behaviour was by far the biggest predictor of burnout symptoms and intent to leave - predicting more than 60% of the total global variance4. When asked about aspects of their jobs that undermine their mental health and wellbeing, employees said the feeling of always being on call, unfair treatment, unreasonable workload, low autonomy, and lack of social support all play their part.
These findings suggest that wellness programs targeting individuals may not bring organisations relief from a higher incidence of burnout. In fact, decades of research suggest organisation-level interventions are needed if HR teams are to have a sustainable impact on employee health5.
3. The B-suite is critical to managing employee burnout
In exploring the organisational dynamic behind burnout it’s clear managers have an important role to play in strategies and solutions. Gallup research6 reveals how managers can break the burnout cycle by increasing employee autonomy. They found employees are 43% less likely to experience high levels of burnout when they have a choice in what tasks to do, when to do them and how much time to spend on them7. Research from MetLife also shows the positive difference managers can make, with 77% of employees who have supportive managers saying they feel mentally healthy versus 47% of workers who don’t receive that support8.
The phrase ‘B-suite leaders with C-suite impact’ was coined by Rebecca Houghton at BoldHR to describe the cohort of ‘middle managers’ that we know are critical to a thriving organisation. They are experienced middle managers who hold business critical roles and usually sit 3-5 layers below CEO (depending on organisational size).
4. A workplace experience that treats employees as people
5. Measurement and accountability matter
For many organisations seeking to shift the dial on wellbeing, measurement is often the X-factor missing from their approach. And knowing whether your solutions are having impact is only possible if you benchmark where you are today.
The first step is to engage directly with employees to gauge their lived experience at work. There can be significant mismatches between what leaders think employees want and their actual needs and preferences. Research from McKinsey reveals an average 22% gap between employer and employee perceptions – with employers consistently rating workplace dimensions associated with mental health and wellbeing more favourably than employees11. This disconnect can lead to HR teams trying to solve the wrong problems.
Listening to employees also creates the expectation that action will follow. If organisations and HR leaders are to build a trusting relationship with employees, they must be willing to be held to account for addressing the issues they reveal, even when this means tackling systemic change.
As a premium provider of employees benefits to many organisations across Australia, Maxxia have seen the difference salary packaging could make to the overall financial position of employees. Not only can take up of salary packaging boost net household income for employees, a best-practice program supported by effective communication can also strengthen your employee value proposition as a whole.
Maxxia can offer your organisation a full benefits assessment to measure the effectiveness of your current employee benefits offer. We can also put a dollar figure to the potential savings and efficiencies from running the program and compare overall performance with best practice for your industry.
1 & 2. McKinsey Health Institute, Employee Mental Health and Wellbeing Survey, 2022
3. Sydney Morning Herald, Australia is on the brink of a wellbeing recession, May 2022
4, 5 & 11. McKinsey, Addressing employee burnout: Are you solving the right problem?, May 2022
6 & 7. Gallup, How to prevent employee burnout, 2022
8. Metlife, Employee Benefits Trends, 2022
9. PwC, Global Workforce Hopes and Fears Survey, 2022
10. Mercer, Is your employee value proposition still relevant?, 2022
