Workplaces aren’t burnout-ready, Allianz says

Psychological claims have increased by 28.4 per cent since FY2020–21, workers take an average of 2.5 months (81 days) off per claim in FY2024–25, and 2.73 million Australians are likely to consider quitting their job within the next year, a new research has revealed.

Allianz commissioned research conducted by YouGov, which used survey data from 1,642 Australian employees and 506 managers between 28 July and 7 August this year, revealing that workplaces are struggling to support mental health in the workplace, and managers and employees are both feeling mental distress due to their workloads.

What is happening?

Its data revealed that 80 per cent of employees and nearly two-thirds of managers said their organisation does not encourage good workplace habits and boundaries to reduce burnout. Alarmingly, six in 10 (59 per cent) employees experienced mental distress from work, led by factors such as excessive workloads, constant meetings, and unrealistic deadlines.

The co-founder of anti-burnout program TANK, Helen Lawson Williams, said: “Burnout looks differently, depending on the person, role, or industry. But burnout certainly doesn’t have to be part of a job.”

The research also revealed that employees spend 3.31 hours per week on tasks or meetings that they deem are unnecessary, and a third (32 per cent) report not being able to take adequate breaks due to their back-to-back schedules.

Additionally, impacts of work-related stress manifested in the personal lives of employees – 73 per cent of employees reported not being able to schedule regular leisure time, 78 per cent of employees were not splitting household duties equally, and 81 per cent did not have a support network to help with tasks such as school drop-offs or caregiving.

As a result, employees and managers have low confidence in their organisation’s support facilities – only one in three (35 per cent) managers said their organisation supports the needs of working parents and carers, and just 29 per cent of employees said they feel comfortable raising their concerns about discrimination related to caring responsibilities.

Key causes

Based on its findings, 78 per cent of surveyed managers said there are systemic barriers to reducing burnout – 26 per cent said it was due to a lack of time and resources, 26 per cent said it was due to a lack of readily available technology, and 23 per cent said it was due to conflict with other workplace priorities.

Workplace stress continues to be worsened by economic pressures – one in four (24 per cent) respondents said their ability to focus at work is impacted by financial strain and cost-of-living concerns, Allianz found.

Being unable to switch off and having an “always-on” mentality was a contributor to work-related mental distress – 19 per cent of employees said technology made it hard to disconnect from work.

Williams stressed that burnout “can be prevented when teams are checking in with each other on the right things, and acting early. Employees can start by recognising when their stress/recovery balance is off, which could feel like fatigue, overwhelm, irritability, or caring less about their work than usual.”

What can be done?

Allianz Australia’s national manager mental health strategy (personal injury), Brianna Cattanach (pictured), said: “Australian workplaces [must] take a holistic view of employee wellbeing. Business leaders can support this through job design that ensures manageable workloads, a natural ebb and flow to work demands, adequate ‘recovery’ time during work hours and ground rules for disconnecting after-hours.”

“This should be accompanied with manager training on how to set these healthy workforce habits, and respond with empathy to work-related burnout and mental distress. This was the most sought-after measure that surveyed employees want their organisation to commit to.”

The report said that 36 per cent of employees want better training for managers to better support employee wellbeing, 34 per cent want unnecessary tasks and meetings to be eliminated, and 30 per cent want monthly or quarterly recurring mental health days.

Cattanach said: “Speak up before things escalate, and be specific about what’s making it harder to limit stress or recover well – whether it’s meeting overload, lack of breaks, unrealistic deadlines or inability to focus due to pressures outside the workplace. Ask for what you need, and use the support your workplace offers, like employee assistance program services.”

Allianz urged organisations to build healthier work habits, while redefining burnout to realistically reflect today’s ways of working and life’s competing demands; this is amid Australian organisations projected to invest $33.83 billion in mental health support services this year.

Cattanach said: “Don’t underestimate the power of small changes: taking proper breaks, setting boundaries, and prioritising recovery activities like sleep and exercise can be enough to reset your stress/recovery balance, preventing burnout for good.”

Carlos Tse

Carlos Tse is a graduate journalist writing for Accountants Daily, HR Leader, Lawyers Weekly.