Burnout turning up the heat on U.S. companies

Respondents said the top causes of burnout were mental and emotional stress followed by long hours. While worker shortages can contribute to long hours, the increase in mental and emotional stress as a cause of burnout is a concern because, for many reasons, this increase could be due to factors outside businesses’ control.

As our survey shows, relatively unchangeable factors such as the commute, work relationships and job insecurity rank low on the list of stressors. But the presence of poor communication as the second-highest cause of stress offers a key insight because communication is a basic workplace requirement that businesses can address.

Margaret Belden, Grant Thornton Growth Advisory Services Director, said company leaders must understand that employees today want and expect more information and transparency about their jobs and their business. To relieve the effects of burnout, Belden said, company leaders need to prioritize communications with employees, whether through their immediate managers or company-wide announcements. This should encompass communication about business strategy, goals, organization changes, upcoming business decisions, career and pay.

Compensation challenges

Addressing the impact of burnout is crucial because it directly affects an organization's ability to attract, motivate and retain talent. Benefits and pay once again dominate the survey responses measuring these motivators, with both listed as the top two reasons to join a company and stay. Benefits are less of a factor when deciding whether to get a new job, but pay, particularly to counter inflation, was cited by nearly half the respondents.

Getting compensation right has always been a challenge, and we know that benefit offerings and their value can differ by employee. As employees struggle to keep up with rising costs and inflation, they will be more critical and outspoken about their wages and the cost of benefits they incur. Leaders have faced this challenge before, and it requires leveraging market data to remain competitive, sharing the impact of the organization’s financial standing on pay and promoting pay transparency practices.

Ginzel said the overall trend of the past few years was that workers had the upper hand in salary negotiations, which saw significant and broad increases in wages. But last year’s inflation ate into those earnings at the same time the current hiring dynamic is starting to turn to a more employer-favored marketplace. Grant Thornton’s recent CFO survey also shows finance officers are in a cost-saving mode, further limiting the ability to adjust pay.

“We hear about some of these challenges and compensation and benefits, and it’s exacerbated now by inflation. So, it’s becoming harder to keep competitive,” said Belden. Companies that need to distinguish themselves from their competition must continuously evaluate their benefits and compensation packages to ensure they are competitive.

In times of financial constraints, Ranzau said, there are other levers employers can use to address workplace features that employees value, such as their work schedule, job content and how and where work is done.  Employers should recognize, though, that at lower salary thresholds, trade-offs that minimize compensation in favor of other incentives may be less desirable. This offers organizations the opportunity to address compensation challenges where they will have the most impact and meaning in retaining critical talent.

One interesting finding is that only 10% of workers have a concern about being laid off in the next year, even though ensuring job security is ranked highly as a motivator to stay at a position. Our survey also found that 25% percent of workers have a second job outside of their primary employment and an additional 37% of respondents are considering a second job.  Belden said having more people earning or considering a second income is a result of rising costs and inflation. As this trend continues, it will be a contributor to overall wellness and quality of work. While some industries and roles might lend themselves to the attainment of a second role more easily than others, this is an area to carefully watch, as a second job can quickly be a contributor to declining wellness and burnout.

To relieve stress, burnout and talent loss, companies need to adopt informed and purposeful strategies. By taking a deep dive into the strategic objectives of the organization or department, company leaders can learn what is critical, what can be eliminated and what can be placed on hold. Companies should look at their operating model, determine where they can achieve greater efficiencies, leverage technology and implement improvements. They can also probe other ways to relieve stress by asking:

• How are roles and responsibilities allocated and distributed, and what is the impact to employees during times of shortages?
• How often do managers check in with their people to see how they are experiencing the stress of work and life?
• What types of work-based forums are available to discuss stressors and brainstorm solutions in a comfortable and safe environment?

Investing in skills

After compensation, advancement opportunities were cited as a primary reason that people join, stay or leave jobs. Upskilling your workforce is taking on added importance because companies need to bring in people who have skills adaptable to future needs, such as when technology changes affect operations or when market conditions require new goals and, consequently, new skill sets from workers. Furthermore, AI is changing roles at a faster pace than companies can acquire them. Some of the 28% of workers who say their jobs will be changed or eliminated by AI may be put more at ease if they have a full understanding of how to take advantage of the technology and use it to improve their performance.

AI promises to help — eventually

The introduction and increasing use of AI in business operations is a factor clearly seen in our survey. As detailed in our recent survey of HR leaders, AI use is becoming ubiquitous in HR tasks that include potential hiring evaluations, performance management, building training courses and writing job descriptions. Despite AI and other forms of automation being a prime focus of improving business operations, our survey shows that long hours remain a significant challenge for workers. Incorporating automation won’t only alleviate mundane tasks. Through the use of task monitors, AI can help workers learn more about how they work by measuring multitasking and providing insights on how to use time more effectively.

Among the many open-ended survey responses received for a question asking what their organization could do to improve their experience, one response succinctly captured the findings of this year’s survey:

“My organization is understaffed in several areas. This is causing me to work longer hours, and even when I’m home I’m still working. Hiring more qualified staff would be a great burden off my shoulders.”

American workers know what they need to succeed in their jobs. Can American companies deliver?

Contacts: