Employee burnout can cost employers millions of people each year

Employee burnout ranges from around $4,000 to $21,000 per US employee, and can cost millions of dollars each year, according to a study published in the American Journal of Preventive Medicine. This means that 1,000 US employees companies lose on average about $5 million a year.

These estimates are based on computational simulation models developed by the Public Health Informatics, Computational and Operational Research (Phicor) team based at the Cuny Public Health and Health Policy (Cuny SPH), collaborating with researchers at Baruch College (JHU) at the University of San Diego (USD) Knauss School Business.

“Our model quantifies employee burnout conflicts with corporate and organizational revenue,” said Bruce Y. Lee, Professor Cuny SPH, Phicor and Executive Director of the Center for Advanced Technology and Communication in Health (CACT), and senior author of the study. “Therefore, it can give businesses and organizations better ideas about how focusing on employee well-being can help reduce costs and increase profits.”

The computational model simulates employees moving through different stages, from active participation in the workplace to the stressors they meet, leading to breaking out and burning out over time. You can specify the position of the employee (e.g., hourly non-manager, salary manager, manager, or executive) and state that there is an employee first (e.g., burn out, burn out, quit work, overexpanded, freed, and ineffective).

As simulation time progresses, employees may encounter a variety of stressors related to workplaces (workload, community, control, compensation, fairness, value) and non-workplaces (e.g., family, cultural, psychological environment, finance, health). state. Although an employee is in a certain state, the employee has a certain level of productivity and experiences various health effects.

The team then ran the model to estimate the resulting costs for employers if different employees experienced different types of departures and burnout at different times. For example, non-manager employees who pass burnout will cost an average of $3,999 (95% range: $3,958-$4,299) to their employers. These costs average $4,257 (95% range: $4,215-4,299) for a salary manager, $10,824 (95% range: $10,700-10,948) for a manager, $20,683 (95% range: $20,20,915).

Assuming that 1,000 employee companies have a typical distribution for each employee type (59.7% unmanaged hour, 28.6% unmanaged salary, 10% manager, 1.7% executive), the employee release and burnout costs total $5.04 million (95%: $5.03-$5.05 million). Also related 801.7 (95% range: 801.5–801.9) is a quality-adjusted life lost each year.

All of these quantify the significant impact of employee departure and burnout on employer revenue. These costs range from 0.2 to 2.9 times the average cost of health insurance and 3.3 to 17.1 times the average cost of employee training to employers.

These results give an insight into how much they want to invest in preventing withdrawal and burnout. To properly manage employee workloads, there are many interventions that can reduce the risk of leaving and burnout from companies that offer mental health benefits to financial literacy programs. However, each of these requires a financial commitment to establish and maintain.

“Burnout is prevalent and costs millions of people every year,” said Molly Kern, professor at the Zicklin School of Business at Baruch College and co-author of the study. “Organisational leaders need to consider how their culture and benefits programs support 60% of employees who are quietly struggling in honor of burnout.”