Ignoring Burnout Is a Costly Decision

It’s normal for employees to have days when they’re not operating at full capacity. In fact, we just posted a blog about the importance of taking human variability into account when defining expectations and behaviours for success. However, if an individual is feeling this way for a longer period, they may be experiencing burnout.

The World Health Organization defines burnout as chronic workplace stress that has not been successfully managed, characterized by:

• • Feelings of energy depletion or exhaustion

  • Increased mental distance from one’s job, or feelings of negativism or cynicism related to one’s job

  • Reduced professional efficacy

In June 2025, Mental Health Research Canada (MHRC) surveyed over 5,000 employed adults across Canada for the Mental Health in the Workplace Report. The survey revealed that 39% of Canadian employees felt burned out. In companies not focusing on prevention, the number was closer to 50%.

This has significant implications for organizations. Workplaces that prioritize burnout prevention report a 27% burnout rate, compared to 47% in organizations that take no action. The financial impact is substantial: burnout can cost between $5,500 and $28,500 per employee. For organizations with 500 or more employees, inaction can total approximately $4.1 million – about $1.7 million more than organizations of the same size that do invest in prevention.

Survey respondents also said that co-workers and manager support have the greatest impact on mental health, and nearly 75% believe their manager would support them. However, many managers say they don’t feel equipped to lend the support that is needed and only 11% of respondents said their workplace prioritizes burnout prevention.

As leaders, you have an opportunity to close this gap. Below are steps you can take toward burnout prevention to ensure your employees stay healthy and safe.

1.      Assess your workplace culture. 

To ensure you have a safe workplace culture where employees feel they can come to you before things become critical, ask yourself these questions:

• • Do employees trust their leaders to talk about psychological safety concerns?

  • Do employees trust their peers and leaders to listen and give them the benefit of the doubt?

  • Do employees believe leaders are honest and trustworthy?

  • Do employees feel safe to report mistakes?

  • Do employees believe leaders will do what they say and keep their word?

2.      Understand the stages of burnout

Burnout doesn’t occur overnight; it builds over time. This article outlines the five stages that employees move through before symptoms become severe:

1. 1. Honeymoon – When starting a new job, employees typically feel creative, energized, engaged and optimistic.

   2. Onset of stress – Employees still feel work is rewarding but stress begins to creep in more regularly, affecting productivity.

   3. Chronic stress – Stress is persistent, the nervous system is on high alert and employees push past healthy stress levels and experience more intense symptoms.

   4. Burnout – Symptoms are critical, the nervous system is operating in survival mode and employees are no longer functioning as they normally would.

   5. Habitual Burnout – Burnout is embedded and employees experience significant and ongoing mental, physical and emotional problems.

3.   Examine your workplace to identify potential hazards

• • Assess policies and procedures

  • Consider work design, administration and workload expectations

  • Evaluate leadership styles

  • Listen to employees and gather feedback

  • Assess the work environment and resources employees have to do their jobs

  • Evaluate the programs, policies and processes you put in place to make sure they are working and adjust as necessary

4.      Lay the foundation for psychological health and safety

• • Ensure you have a solid psychological health and safety program in place.

  • Provide leaders, managers and employees with the training and education they need to protect others and their own mental health.

  • Let employees know you are committed to their psychological health and safety and remind them regularly of the support that is available from others in the organization and resources, such as EAP.

  • Don’t just tell employees that EAP is there; be specific about what is available and make sure they know how to access the resources they need.

  • When employees come forward, be sure to practice active listening so they feel safe to share if they are having challenges.

Burnout is a major concern that can take a dangerous toll on employees and your business. It can happen to anyone; it is not a sign of weakness or incompetence. It is a normal human response to chronic stress and excessive mental load. Investing in prevention will not only protect employees, but it will also help you build a more resilient, sustainable organization.

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