The Startling $ Cost of Burnout
We all know there is an emotional, mental, and physical cost of burnout. From diminished health to damaged relationships, even the impact on children in homes with a burned-out parent. There is a social and personal cost to burnout that can only be measured as priceless.
However, we can also acknowledge that there is a very real financial cost to burnout. The World Health Organization estimates annual drop in productivity due to burnout costs the global workforce approximately $1 trillion. Further, the American Psychological Association calculates approximately 550 million workdays annually are missed due to stress. That’s over three days per employee.
Of course, this will vary by person and company, but here are some interesting estimates to ponder.
$3,100+ = Individual Estimate, assuming ~6 month recovery:
$0.00....... = Therapist: 16 free sessions through company EAP
$600........ = Neurologist for migraine management: 1x
$100........ = Migraine Medication, on high deductible plan
$600........ = Dr. appointments to diagnose and monitor: 4x$150
$280........ = Blood tests to diagnose and monitor: 4x$70
$720........ = Supplements to correct and maintain $120x6mo
$100........ = Anxiety Medication
$400........ = Alcohol (joking, but not joking)
$300........ = Hair loss supplement
Priceless = Years off lifespan
Priceless = Impact to children’s development & spousal relationships
**Many people experiencing burnout also face emergency room visits, physical ailments, an increase in annual doctor visits, reduced contingent compensation due to drop in performance, job-loss, and more.
Organizational Estimate (conservative):
$0-full project budget............ = Poor performance
+/- 10% of team salary.............. = Toxic Culture & burnout contagion
+/- %10 of project budget...... = Disengagement
30%-200% of salary.................. = Turnover (Burnout Turnover Rate = Normal Turnover * 1.5)
8% of total utilization.............. = EAP & medical plan utilization
1.27% headcount budget...... = Absenteeism: 3.3 days/employee
Priceless.......................................... = Diminished innovation within team/location/company
Priceless.......................................... = Damaged company reputation
With estimates hovering between forty to seventy percent of workers experiencing burnout, ignoring the issue will be tremendously costly to employers. Fortunately, WorkWell People Solutions has a roadmap for preventing and remedying burnout culture. The cost of prevention is well worth the savings. Reach out if we can help you prevent or recover from burnout and burnout culture. Get a sneak peak in Life After Burnout: Reclaim, Recover, Renew coming soon.
Courtney Murphy is a Career Coach and HR Consultant who brings nearly 20 years’ experience in corporate HR with degrees in Strategic HR Management, Psychology, and Diversity and Inclusion.
With a passion for social and organizational psychology, Courtney has extensively studied occupational stress to discover effective and sustainable methods to improve engagement and motivate performace.
Courtney simplifies relevant data and useful information to help employees and companies thrive in their success.