Beat the Cost of Burnout

(First published in WBM - Australia's Wine Business Magazine September/October 2024)

There’s an increasing demand for better working conditions within the Australian wine industry. It was recently reported that over 120 winery workers from St Hugo and Jacob’s Creek in the Barossa Valley walked off the job, demanding improved conditions and a fair workplace agreement.

Now take note. These demands can happen anywhere, not just at the ‘big end of town’. Every business, regardless of size, has a legal obligation and a duty of care to provide safe working conditions that protect both the physical and psychological health of their employees. And almost every job comes with hazards that can increase the risk of work-related stress, potentially harming employees’ mental and physical health.

These hazards might stem from job design, social interactions with co-workers and customers, or the working environment itself. It’s up to employers to assess the variety of hazards and take steps to eliminate or minimise them as much as possible. If they don’t, and work-related stress is prolonged, staff burnout becomes a real – and potentially costly – risk.

According to a SafeWork Australia report from February this year, compared to physical injuries, psychological injuries:

• Usually have longer recovery times (34 weeks compared to eight weeks);

• Have higher costs ($58,600 median compensation claim compared to $15,700); and

• Mean more time away from work (79 percent returning to work compared to 91 percent).

Even without a compensation claim, what’s the real cost to your business if staff underperform, treat customers poorly or don’t even turn up? Stress-related absenteeism costs the Australian economy a staggering $14 billion annually. And, according to global analytics and consultancy firm Gallup, a disengaged worker will cost the business up to 33 percent of their annual salary. That’s a big expense for a small business.

RECOGNISING BURNOUT

A 2022 Microsoft report found that 62 percent of Australian employees were experiencing burnout, compared to 48 percent globally. According to the World Health Organisation, burnout arises from chronic workplace stress that has not been successfully managed. It has three main characteristics:

• Feelings of energy depletion or exhaustion;

• Increased mental distance from one’s job or feelings of cynicism related to one’s job; and

• Reduced professional efficacy (ability to perform).

Burnout symptoms can include a decline in work quality and productivity, increased absenteeism and behaviour changes such as lack of motivation, disorganisation, forgetfulness, anxiety, irritability and cynicism. Physical symptoms might include headaches, muscle pain, cardiovascular problems or digestive issues. Employees might also withdraw from normal interactions or increase their consumption of alcohol or other substances.

People who are not experiencing burnout are 49 percent more engaged, feel a 30 percent higher sense of belonging and experience 50 percent greater psychological safety. They’re also less likely to leave their jobs.

RESPONDING TO BURNOUT

Part of a wellbeing strategy should include baseline data about how your people are feeling and functioning. I work with businesses to design a tailored strategy that incorporates gathering insights into the rates of burnout experienced by team members or leaders.

This valuable data helps them to identify the potential hazards that are contributing to burnout and is key in developing a strategic approach to best support staff while meeting legal obligations. Leaders can take proactive steps to safeguard their people like designing manageable jobs, arranging regular check-ins, watching for signs like excessive after-hours work, missed deadlines or mood changes.

In the May/June 2024 edition of WBM, we examined hazards related to work design, such as lack of role clarity, unachievable job demands, low job control and inadequate reward and recognition. Now, let’s focus on social factors that can become hazards: poor supervisor support, workplace relationships and bullying and harassment.

ADDRESSING SOCIAL FACTORS

Poor supervisor support:

While poor supervisor support might not always cause harm, it can become hazardous if it occurs frequently and over a long period, especially when combined with other hazards like remote or isolated work. This can include unclear or contradictory information, inadequate tools and resources, lack of guidance, limited emotional support and poor performance feedback. Be open with your staff and ascertain if the support and systems are sufficient.

Workplace relationships:

Conflict between workers, clients and customers can take up significant mental and emotional energy, leading to serious errors and unacceptable behaviour. Poor workplace relationships are not just about interpersonal issues, but can also be caused by ineffective systems and processes. Prevention starts with a conversation – nipping problems in the bud and creating a culture of collaboration.

Bullying and harassment:

Every workplace should have a grievance and complaint resolution procedure. Bullying and harassment are harmful behaviours that can cause physical and psychological harm to the person targeted and anyone witnessing the behaviour. These harmful behaviours can be internal (from co-workers or managers) or external (from customers or clients). They might be an inappropriate response to other psychosocial hazards like high job demands or inadequate support.

Understanding how to effectively control these risks is the next step in the management process. Make sure you have adequate training in resolving such matters.

Taking action could involve:

• Creating a friction-less reporting process that is fair, transparent and effective;

• Reducing the fear of reprisal; and

• Considering your workplace environment and the need for systemic change.

CONCLUSION

With workers demanding better work conditions and stress-related compensation claims on the rise, creating a wellbeing strategy is essential to safeguarding both employee health and business success. Addressing psychosocial hazards is not only a legal requirement, but a strategic investment in building a resilient and engaged workforce.