Workplace exhaustion is growing, and it’s affecting everyone

A wellbeing crisis has not made for an easy start to 2026, with 92 per cent of surveyed Australian employees reporting fatigue in the past year, 41 per cent experiencing it more than once a week, and a startling 13 per cent experiencing daily workplace stress.

According to Sonder’s State of Employee Health and Wellbeing Report 2026, which surveyed 6,105 workers across Australia, New Zealand and the United Kingdom, lifestyle contributors pale in comparison to systemic issues, unrelenting workloads, barriers to timely healthcare and resulting stress that compounds the issue and continues the cycle.

The question is whether the worker or the workplace will break first.

“It’s clear that fatigue, stress and poor access to care aren’t just personal health issues, they’re business risks,” Nathan Halliday, chief of member operations at Sonder, said.

He added that the data should be a wake-up call for employers, especially those who underestimate the financial and cultural toll of fatigue. “Australian employees are running on empty,” he said.

Even when mental health services are available, they aren’t always accessible. The findings reveal that while seven in 10 employees experienced poor mental health symptoms in the past year, one in three delayed seeking treatment due to financial issues, time concerns, or distrust in the healthcare system.

Sonder’s data shows how widespread the issue is, and just how quickly it’s growing.

Halliday highlights that “mental health conditions now account for 10.5 per cent of all serious workers’ compensation claims in Australia”, a 97 per cent increase over the previous decade. Other figures have shrunk: the national rate of return-to-work outcomes has dropped to 88.9 per cent, with psychological injuries at a return rate of 76.5 per cent compared to 90.2 per cent for physical ailments.

However, early employer intervention has been shown to nearly double return-to-work rates. Halliday acknowledges that “the system isn’t working”, referencing the new and atypical ways employees are looking for relief, including turning to AI chatbots for support.

This highlights a contemporary demand for digital-first, personalised and faster support, leaving employee assistance programs (EAPs) in the dust. While some blame younger workers who grew up in a world of immediacy for this shift, eyes are now on employers to adapt, or, as Halliday warns, they “risk losing the next generation of talent altogether”.

However, those in positions aren’t immune to burnout. As reported by HR Leader at the end of 2025, over 80 per cent of HR professionals struggled to find a balance between managing financial goals and employee wellbeing outcomes. Seventy-three per cent of HR practitioners have contemplated leaving their role due to extreme stress, with more than half feeling their job has become “much more difficult” as a result.

And with the cost of poor mental health to the Australian economy estimated by the Productivity Commission to be between $12.2 billion and $22.5 billion annually, Halliday’s assertion that “the case for early-intervention support measures has never been stronger” rings true.

It certainly seems a popular idea among employees – 77 per cent of surveyed Woolworths staff prefer live chat for mental health support, with 38 per cent of requests coming outside of working hours, and 49 per cent of Hoyts workers who use online chat to get support are mental health-related. Best & Less reported a 24 per cent improvement in employee retention rates after prioritising employee health and safety, and an estimated $1.1 million in savings.

If employers are willing to rethink their current workplace systems and make room for contemporary methods and early intervention, a lot of sticky situations will be avoided down the line.

As noted by Halliday, “the organisations that thrive in 2026 will be the ones that treat wellbeing as a strategic advantage, not an afterthought.”

“When employees feel supported, they stay longer, perform better and are more resilient,” he said.