Executive burnout comes at a cost.
It negatively impacts individual wellbeing but also organizational finances and culture.
When executives and company leaders suffer from burnout, the whole company suffers.
Individual Wellbeing Cost
A global survey conducted earlier this year by Deloitte and independent research firm, Workplace Intelligence, revealed that:
36% of executives report feeling exhausted often or always
41% of executives report feeling stressed often or always
40% are overwhelmed often or always
This rapid decline in executive wellbeing is partly due to the pressures and additional challenges stemming from the pandemic.
Executive also morale appears to have worsened since the start of the COVID-19 pandemic — with 76% of C-suite workers reporting that it had a negative impact on their overall well-being.
However, it is also the result of years of unmanaged stress and surviving on adrenaline.
Financial Cost
Executives and middle leaders' roles are critical for company success.
The Deloitte survey revealed that as many as 70% of C-suite executives are considering quitting their jobs compared to 57% of employees who answered the same way.
A study by the Center for American Progress determined that the cost of turning over one highly skilled employee can be as high as 213% of the cost of one year's compensation for that role.
Culture Cost
The culture and wellbeing of an organization begin with leadership.
"Leaders set the tone, so their own wellbeing and resiliency trickles down to the rest of the organization," noted Zabeen Hirji, executive advisor at Deloitte Canada.
When leaders (and employees) are burnt out, they're more likely to feel physically and mentally exhausted, less focused, motivated, and productive, affecting their performance and output.
When leaders feel like they're constantly in survival mode, it becomes more challenging to lead with empathy and compassion, to be a good role model, and to form relationships with their teams.
These skills are all crucial to successful leadership and business performance, especially in times of crisis.
How to reduce the cost of executive burnout:
Deloitte Canada recommends focusing on four key areas when looking to support and improve leader and employee burnout within an organization:
Reduce stigma around mental health and normalize discussions surrounding it
Build peer relationships and create a culture of community, support, and collaboration
Rethink the work structure to enable leaders to work more effectively and efficiently
Enhance the organization's mental health and wellbeing support.
How are you supporting your team executives and leaders?
I partner with organizations as a fractional Chief Wellbeing Officer and Executive Wellbeing Coach to drive business performance while improving individual wellbeing without further overburdening your HR department!
Schedule a collaboration consult today to learn more about how we can achieve your business and wellbeing goals together.