Understanding the High Costs of Workplace Burnout and Employee Turnover

Many things come to mind when we hear the word burnout: exhaustion, stress, and feelings of complete mental and emotional depletion. While it may be tempting to define workplace burnout as a simple case of employees being unable to handle the pressure or pace of their job, the truth is that it's often much more complex. Most cases of burnout are a result of the company environment, rather than a weakness in individual employees.

The World Health Organization defines burnout as "a syndrome conceptualized as resulting from chronic workplace stress that has not been successfully managed." According to a study published in the American Journal of Preventive Medicine, it costs organizations an average of between $4,000 and $20,000 a year, depending on the employee's role. What's worse is that it isn't a problem confined to just a few employees. In fact, by some estimates, 82% of employees feel that they are at risk of burnout.

It's not hard to see how quickly these numbers can add up and become problematic for a company's bottom line. For senior leaders, the message couldn't be clearer: Burnout and turnover are undermining business performance at a strategic level.

When your high-performing employees start to disengage or leave because of this issue, it causes reverberations that are felt throughout the entire company. Here, we examine the high costs of workplace burnout and turnover, why organizations should prioritize addressing these issues, and how Baryons Flourishing Partners can help. 

Why Workplace Burnout Is Rising Across Large Organizations

If you've sensed that workplace burnout is increasing, you're not imagining things, as that's exactly what's happening. Asurvey conducted by Gallup found that two-thirds of full-time workers experienced burnout at least sometimes, with nearly a quarter specifically feeling burned out “very often or always.”

Given the numbers, we can't chalk it up to being just a personal issue, so it's time to call it what it is: a systemic organizational problem. Burnout has reached unprecedented highs as a majority of employees find themselves struggling with chronic stress. It's difficult to pinpoint a single reason for the rise; rather, there are multiple drivers, including unmanageable workloads, lack of support, unfair treatment, and inefficient processes. 

Leadership generally understands that burnout is bad for morale. However, what they might not realize is that it also lowers performance, increases mistakes, and drives up absenteeism, as workers suffering from burnout are 63% more likely to take a sick day. 

In the past, employers have taken a "just toughen up" stance with employees, but today's leaders are beginning to recognize that burnout often stems from organizational factors and isn't a symptom of a lack of resilience among their workers.

How Workplace Burnout Leads to Costly Employee Turnover

Workplace burnout and disengagement often go hand-in-hand with voluntary turnover. In fact, an affected employee is 2.6 times more likely to be job hunting. In other words, if your employees are burnt out, you're likely losing talent, as frustrated high performers will update their resumes and plan their exit strategies.

HR leaders have witnessed the detrimental impact of employee burnout firsthand, with 95% reporting that it is sabotaging retention, and nearly half believing that it accounts for up to 50% of their annual turnover. When these employees walk out the door, they take their skills and institutional knowledge with them. 

Organizations that ignore burnout in the workplace today all but guarantee higher recruiting and training costs tomorrow. What many leaders don't realize is that their top-performing employees are often the first to burn out and leave, as they're the ones most likely to take on extra work and keep projects on track. Over time, this can lead them to feel overwhelmed and disillusioned.

Once the rotation of burnout and turnover is set in motion, as one HR expert observed, it "will undermine engagement and cause an organization’s top performers to leave … This creates a never-ending cycle of disruption.” When one person quits due to burnout, their workload often falls on the remaining team members, putting them under greater stress. If the organization fails to address the underlying issues, more resignations will likely follow. The only way to break this cycle is for companies to proactively intervene to support their employees before they reach the tipping point. 

That's where Baryons can make a real difference, as Flourishing Partners provide personalized, real-time support and development at scale. Baryons can help employees feel seen, supported, and empowered before burnout pushes them to the exit, something that all workers deserve.

What Can Organizations Do to Prevent Workplace Burnout and Turnover?

Tackling workplace burnout can seem like an insurmountable task, but with the right approach, it can be done. The most important step that leaders can take is recognizing that this is a business issue and treating it like any other operational risk. 

Part of that is ensuring that employees feel safe voicing concerns about their workload and stress. In many cases, it's possible to intervene. According to Gallup's research, 52% of exiting workers said that their manager or company could have done something to prevent them from leaving. It’s often as simple as having a frank conversation with an employee about their challenges, workload, and career goals. Mentorship and support networks are effective ways for organizations to combat burnout and ensure that employees aren't going at it alone. 

While formal programs can provide a much-needed outlet and support network for staff, in large organizations, it's not always feasible to assign a dedicated mentor to each employee. The good news is that innovative solutions, such as AI mentors, are making it possible to deliver personalized support, guidance, and development at scale.

These tools can help identify early signs of burnout, offer timely feedback, and provide employees with a sense of direction and connection before disengagement turns into departure. Flourishing Partners like Baryons enable companies to engage employees and address issues as they develop, before they escalate to burnout. The consistent support, reflective nature, and future focus that Flourishing Partners provide can give employees a reason to stay, a roadmap to grow, and a partner in designing what's next.

Final Note

While traditional management tells us that burnout is something that happens to just a few employees who can't keep up, real-world experience tells a different story. This is a widespread problem that can quietly drain a company of its best talent and its bottom line if left unaddressed. When the brightest in your company walks out the door, they take years of knowledge, wisdom, and momentum with them, leaving the rest of the team even more stressed than before their departure.

The good news is it doesn’t have to be this way.

When organizations embrace open dialogue, provide real support systems, and leverage Flourishing Partners like Baryons, they can prevent burnout before it spirals.

When employees feel supported and see a path to growth inside your organization, they engage, innovate, and flourish.

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