As the pressures of the corporate world intensify, Burnout among leadership teams is becoming an increasingly critical issue. For Australian businesses, the stakes are particularly high, with Burnout impacting productivity, employee engagement, and overall business performance. In this newsletter, we’ll delve into why it’s essential for executives and HR managers to identify and address Burnout within their leadership teams using the expertise of qualified professionals.
The Cost of Burnout in Australia
Understanding Burnout
Burnout is a state of chronic physical and emotional exhaustion, often resulting from prolonged stress and overwork. It affects not only individual well-being but also organisational health.
Australian Statistics
Widespread Issue: A recent study by the Australian Psychological Society found that 75% of Australians experience significant stress related to work, with nearly half reporting burnout.
Australian Burnout: McKinsey a leading global business services firm identified that 24% of Australian workers are in Burnout. Allianz identified that nearly 50% of employees feel fatigue and ‘burnt out’, with over 33% considering leaving their current organisation in the next 12 months.
Economic Impact: The Productivity Commission estimates that mental health conditions, including Burnout, cost the Australian economy up to $60 billion annually in lost productivity and increased healthcare expenses.
Employee Turnover: A survey by the Australian HR Institute revealed that Burnout is a leading cause of employee turnover, with replacement costs averaging between 50-150% of the departing employee’s salary.
Recognising Burnout in Your Leadership Team
Early Warning Signs
Leaders are particularly vulnerable to Burnout due to the high demands of their roles. Key indicators include:
Increased Absenteeism: Frequent or prolonged absences can be a red flag for Burnout.
Decreased Productivity: A noticeable drop in work output and efficiency.
Emotional Exhaustion: Signs of fatigue, irritability, and detachment from work responsibilities.
Increased Depersonalisation: An increase in negativity, cynicism and disconnection from colleagues and responsibilities.
The Ripple Effect
Burnout in leadership not only affects individual performance but also has a cascading effect on their teams, leading to decreased morale, engagement, and overall productivity. At an organisational level the biggest risk is key leaders resigning due to a lack of interest and support during times of stress and change.
The Importance of Professional Intervention
Why Professional Help is Essential
Engaging a qualified mental health professional offers targeted strategies and support, crucial for addressing Burnout effectively.
Customised Approaches
Personalised Plans: Professionals can create tailored intervention plans based on individual needs and organisational context.
Proven Techniques: Utilising evidence-based methods that have been designed for workplace settings, such as Acceptance Commitment Training (ACT), Solution Focussed Therapy (SFT), Mindfulness-Based Stress Training (MBCT), and cognitive-based approaches can significantly reduce Burnout symptoms.
Sustained Benefits
Enhanced Resilience: Professional support helps leaders develop resilience, enabling them to handle stress more effectively.
Improved Decision-Making: Leaders who manage their stress better are more capable of making clear, strategic decisions.
Retention of key people:Leaders who have enhanced resilience and better decision-making are more likely to retain key personnel and less likely to experience turnover within their teams or to resign themselves.
Case Study: An Australian Example
Consider the example of a leadership team that faced high Burnout amongst senior managers towards the end of the financial and calendar year. By partnering with a Leadership Psychologist, the company implemented a comprehensive program, including regular workshops, one-on-one coaching, and resilience training. Within a year, all leaders were no longer at risk of Burnout, and pre- and post-team trust and cohesion scores showed a statistically significant improvement in areas such as feeling safe, calling out problem behaviour without consequences, and recognising how to better navigate personality differences. This organisation also retained 3 key people who were about to resign.
Taking Proactive Steps
Action Plan for Executives and HR Managers
Conduct Assessments: Regularly assess Burnout levels within your leadership team using surveys and professional evaluations.
Engage Experts: Partner with qualified mental health professionals to provide tailored support and intervention plans.
Have a pro-active approach. Offer your senior leaders the support of a qualified professional to design a plan that is unique to their role, team, responsibilities, and personality, that intervenes with individual and team Burnout.
Monitor Progress: Continuously track the effectiveness of your programs and Burnout interventions and adjust strategies as needed.
Closing: Invest in Your Leadership’s Well-being
Addressing Burnout is not just about improving individual well-being—it’s a strategic business decision that enhances overall organisational performance. By engaging qualified professionals, you ensure your leadership team is equipped to handle the pressures of their roles effectively and sustainably.
Call to Action: If you’re ready to take the next step in combating Burnout within your leadership team, contact a qualified mental health professional today. Investing in their well-being is investing in the future success of your organisation. By proactively addressing Burnout through professional support, you can safeguard the health and performance of your leadership team, ensuring long-term success for your organisation.
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Found this newsletter insightful? Share it with your fellow executives and HR managers. Together, we can foster healthier, more productive workplaces across Australia.
Margie Ireland is a registered Psychologist (MAPS), and Leadership Researcher and Coach (COPS) (AC), and the author of The Happy Healthy Leader. She works with CEOs, MDs, and HR heads to help leaders and teams reach their full potential, even in crisis. Her evidenced-based coaching combines business and psychological principles, offering a unique commercial and psychological perspective. Margie’s approach, informed by her personal leadership experiences, consistently delivers results.
