The burnout crisis

Burnout isn’t just an organizational buzzword; it’s a daily reality for many employees. The most common causes are high workloads and poor organizational support, leaving those affected feeling overwhelmed, undervalued, and exhausted.

 In the years following the COVID-19 pandemic, organizations have noted a rise in the number of employees showing symptoms of burnout. The issue has become so pronounced that it has now been recognized as an occupational phenomenon in the World Health Organization’s latest (11th) Revision of the International Classification of Diseases.1

As the work environment continues to change rapidly, three factors have emerged that are exacerbating the causes of burnout. These include:

  1. Increased demands on employee productivity as organizations recover from the global pandemic and adapt to new workplace and market conditions.
  2. A more multigenerational workforce, which has diverse expectations regarding work-life balance, communication styles, and career progression.
  3. Extreme social-political and economic uncertainties, including geopolitical conflicts, trade wars, and humanitarian crises, which are impacting individual livelihoods and personal wellbeing.

This ‘perfect storm’ is hitting many companies hard - profoundly affecting performance and profit. One recent study estimates employee burnout is costing companies in the United States millions of dollars each year or approximately $4,000 to $21,000 per employee.2

Most companies deal with common burnout issues, including absenteeism and task masking (where an employee gives an impression of being busy but is generally unproductive), with targeted wellness initiatives. These can quickly and successfully boost company performance, with most companies who implement them experiencing a positive return. A 2023 survey of HR leaders showed that company wellness initiatives had resulted in a fall in employee sick days, for example.3

Breaking down burnout: what’s driving employee exhaustion?

Burnout is not selective – it can impact any employee, irrespective of their age, gender, tenure, role or industry. The three main signs of burnout are emotional exhaustion, cynicism, and reduced professional efficacy. Employees do not need to exhibit all three symptoms to experience its detrimental effects.

Exhaustion is typically the initial indicator. It can lead to a cynical perspective on daily tasks and toward colleagues and, ultimately, a decline in performance. As burnout increases, changing employee behaviors means they might counter significant emotional and social repercussions that further jeopardize their overall wellbeing.

While certain individual circumstances and stressors can exacerbate burnout, it is important to distinguish that it is a work-related syndrome influenced by organizational factors. There are six aspects of work life that consistently contribute to burnout across various roles and industries. Recognizing them and taking steps to address their impact can help organizations to better understand and prevent burnout.

The chart below represents core organizational dynamics that, when misaligned, can increase the risk of burnout. Each lever highlights a specific area where employees may feel under-supported, undervalued or disconnected, leading to emotional strain and disengagement. Understanding how these factors interact with one another can help leaders target interventions that more precisely support sustainable performance and employee wellbeing.

Six levers of employee burnout: Lack of control, Insufficient reward, Mismatched values, Lack of fairness, Lack of community, Unsustainable workload

Awareness to action: protecting employees

To avoid more serious consequences of burnout, it is crucial that leaders recognize how it manifests in the workplace. Changing employee behavior is one of the most typical, as is increased absenteeism, health complaints or alcohol and substance abuse. Leaders should be tuned into shifts in attitude and motivation. From an organizational standpoint, they should also look out for changes in team dynamics and engagement levels, as well as any decline in productivity.

It is unlikely that leaders will be able to address employee burnout issues quickly. As burnout often takes time to manifest, it can also take time to resolve. However, leaders can make some targeted changes which can alleviate the stresses and strains on employees.

1. Empower leaders to prioritize workplace wellbeing:

Awareness of burnout alone is not enough to reduce its impact, as organizations should also empower their leaders to deal with it. Checking in with employees through regular chats, team discussions, or anonymous surveys can identify stressors like high workloads. More human centric leadership should be backed up with the autonomy to deal with common stressors. Being able to act, whether it is adjusting employee workloads, increasing employee rewards for deadlines met or embedding wellbeing initiatives into roles and operations can make a big difference.

Leaders can also influence how employees process wider market and societal challenges, including economic uncertainty and shifting workplace dynamics. Fostering a culture of psychological safety, where employees can express ideas, ask questions, and take risks without fear of punishment or humiliation, can also significantly enhance workforce resilience.

To create these trusted environments where employees feel comfortable sharing their thoughts, leaders should be seeking to develop essential competencies. These include empathy and active listening, which allows them to better engage with individual employees. Acknowledging employee emotions and taking on board feedback allows employees not only to feel they are in a safe space but by being listened to, are valued and appreciated by the organization.

To foster a culture of wellbeing, leaders should also lead by example. Employees take cues from leadership. If managers experience burnout, it is likely that their teams may follow suit. Leaders should adopt healthy work habits. This might include setting clear boundaries such as not working during vacations, conveying a message that employees must not always be 'on.' Some of the most successful organizations are those where the commitment to wellbeing originates from the top.

KPMG introduces an “energy check-in” initiative to target at-risk employees and maintain high performing teams

In 2024, a KPMG member firm began rolling out data-driven “energy check-ins” to identify employees working excessive hours, skipping PTO, or overloading on calls. Managers receive prompts to check in, discuss work-life balance, and encourage wellbeing of individuals possibly at risk of burning out. Early results show 77 percent of employees found the check-ins beneficial, while 88 percent of managers saw value in future prompts. While implementing the program comes with challenges, the member firm believes investing in employee wellbeing leads to stronger performance as well as a happier workplace.4

2. Design workplaces that support wellbeing:

How a workplace is structured can directly impact employee wellbeing. Employees need clearly defined roles, fair workloads, and flexibility to balance their professional and personal lives. Putting flexible policies into practice—such as hybrid or remote work options, compressed work schedules, and mental health programs—can empower employees to effectively manage daily stressors while maintaining productivity. Such policies can also allow employees to better manage personal responsibilities, such as caregiving, and reduce routine stresses caused by extreme weather or unreliable transportation.

Attention should also be paid to the physical work environment which can play a significant role in promoting employee wellbeing. Spaces such as quiet zones, prayer rooms, and relaxation areas provide opportunities for employees to decompress, reset, and manage stress throughout the day. By designing workplaces that foster both mental and physical wellbeing, organizations can seek to address a broader spectrum of workplace stressors more holistically.

Wellbeing policies or relaxation spaces will not reduce burnout alone. Such initiatives are only successful if employees are aware of their existence, trust their effectiveness, and feel comfortable using them. Organizations should underpin their efforts with an evidence-based wellbeing strategy, informed by wellbeing maturity assessment tools. This can help them to identify the current status of their wellbeing initiatives, including what is working effectively, and any areas requiring improvement.

Such data-driven wellbeing programs, tracking the impact of wellbeing initiatives over time and enabling continuous improvement, can help to embed good wellbeing practices into corporate culture. They become even more powerful when backed up with people-driven support. This might include creating “Wellbeing Ambassadors” and networks of peer support sharing knowledge across teams. This helps to ensure that wellbeing remains a shared responsibility by all employees working toward a healthier, happier organization. 

3. Celebrating and including employees:

Employees who feel valued bring their best and whole selves to work. Recognition is not just a morale booster; it’s a proven driver of engagement and retention. According to one study, employees in the United States who received meaningful recognition were 45 percent less likely to leave their jobs.5

Employee recognition is relatively easy to do but is often hard to make meaningful to the individual. Simple, consistent efforts like peer shoutouts, team celebrations, and formal awards can help boost morale and reinforce appreciation. Having the freedom to practice mindfulness, take breaks, and set personal limits are also small but powerful ways stay healthy at work.

Today’s workforce is, however, more complex. It often spans multiple generations, each with different expectations around feedback and motivation, and each with unique work schedules and practices. Such a workforce brings diverse experiences, communication styles, and perspectives. As employees move through different life stages, they face unique, generation-specific challenges that might require more tailored support. Caregiving responsibilities or the management of health-related transitions like menopause can often be masked or overlooked, adding to an individual’s stress.

Inclusion is critical to wellbeing. Organizations should aim for more targeted recognition which is meaningful to all employees, allowing them to feel seen and valued. When employees feel they belong and trust that their voice matters, they’re more engaged, resilient, and less prone to burn out.

A truly inclusive workplace not only recognizes burnout but aims to prevent it. Individuals who are prompted and empowered to take charge of their own wellbeing find they can manage their stress better. Employee Resource Groups (ERGs)6, open discussion forums, regular engagement surveys and inclusion training can all help employees feel they are not only well supported by their organization but are taking charge of their own wellbeing too.

4. Take collective action to bring about change:

Addressing common workforce issues also requires a collective approach. Governments, academic institutions and activists can all play a role in workplace wellbeing, giving employees a voice that is heard. Even small actions, like micro-feminism initiatives, where employees support and uplift female colleagues in meetings, can help foster a culture of respect and psychological safety. When the right support is provided, wellbeing in the workplace becomes a collective success.

  • Governments can help drive meaningful change by establishing policies that promote wellbeing in the workplace, enforcing fair labor practices, and providing economic stability measures that help reduce employee stress. Looking after employee welfare also ensures compliance with labor laws and ethical business practices.
  • Academic institutions are also crucial in educating individuals about mental health and wellbeing, equipping them with the knowledge and skills necessary to foster a supportive environment both in the workplace and in their personal lives.

Conclusion

Addressing burnout problems in an organization can take both time and courage. Voicing workload concerns or suggesting more flexible working arrangements is difficult. When individuals feel comfortable speaking out and organizations create the space for open dialogue and support the wellbeing of employees, real change can happen. Organizations, in turn, can support by providing resilience-building programs, opportunities for employees to give feedback, and learning initiatives that equip them with self-advocacy skills.

When employees take action and leaders provide the right support, wellbeing becomes a shared success. A strong workforce supports a company’s performance and improves it culture and the trust employees have in it. Addressing the ‘perfect storm’ of burnout can help create a more resilient and productive workforce which in turn enables any company to thrive.

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Silvia Gonzalez- Zamora

Partner, Management Consulting, Global Social Sustainability Leader

KPMG in Canada

Natalie Witiuk

Director, Management Consulting, People & Change

KPMG in Canada

  1. World Health Organization “11th Revision of the International Classification of Diseases (ICD-11), 2025
  2. American Journal of Preventative Medicine “The Health and Economic Burden of Employee Burnout to U.S. Employers,” April 2025
  3. HR Executive “The ROI of wellbeing: Business case insights from 2,000 HR pros” June 2023
  4. Fortune “KPMG managers will schedule ‘energy check-ins’ with employees to measure their burnout. Those who don’t take enough PTO could be at risk,” March 2024
  5. Gallup “Employee retention depends on getting recognition right” September 2024
  6. ERGs - Employee Resource Groups are common in many large organizations. They are typically voluntary, employee-led groups whose aim is to foster a diverse, inclusive workplace aligned with the organizations they serve. They are usually led and participated in by employees who share a common characteristic or interest, whether it's gender, ethnicity, religious affiliation, or lifestyle.

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