Companies boost profits by reducing employee burnout

by Time Doctor
reduce burnout boost profits

At a time when companies are being held increasingly responsible for the health of their employees, a groundbreaking study from Belgium shows that putting the health and happiness of employees first is not only the right thing to do but also good for business. More and more people are missing work or getting burned out because of sadness. As a result, businesses are realizing that it makes financial sense to boost mental health care.

The cost of neglecting employees health

A new set of numbers from the National Institute for Health and Disability Insurance (RIZIV) paints a worrying picture: Between 2016 and 2021, the number of long-term absences due to sadness and burnout rose by 46%. This worrying information only scratches the surface, though, since it doesn’t include people who have been lost for less than a year. It’s a clear sign that the mental health crisis in the workplace is worse than most people think.

A joint analysis by HR services provider Securex and data specialist GraydonCreditsafe has revealed the significant effect of this issue on a business’s revenue. According to the research, businesses with low rates of long-term sick leave outperform those with high rates of sick leave by a factor of 1.39. The ramifications are obvious: a company’s financial stability is closely related to the well-being of its workforce.

The welfare state’s financial gains

The study’s conclusions should serve as a warning to all firms. Businesses with the fewest long-term absences (top 25%) reported average added value per employee of €81,629 per year, over €23,482 more than those with the fewest long-term absences (bottom 25%). This discrepancy emphasizes how important staff health is to a business’s success.

Additionally, the survey discovered that absenteeism in the lowest-performing businesses is 1.6 times greater than in the top quartile. In 2022, the predicted cost of burnout per instance was €23,677, taking into account indirect expenses like reorganizing work and hiring and training replacements. These numbers highlight how financially advantageous it is for businesses to provide a healthy work environment.

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The broader effect: ESG objectives, turnover, and gender

The study also clarifies other aspects of employee turnover and gender balance that affect business effectiveness. Businesses with longer-term employees and more gender parity in their workforce have been proven to be more productive. These observations highlight the significance of long-term staff retention plans and inclusive recruiting procedures.

Remarkably, the research indicates that businesses that follow Environmental, Social, and Governance (ESG) objectives—which encompass social concerns and the advancement of gender parity—are not just more morally upright but also more financially successful. The link between achieving ESG objectives and corporate performance strengthens the commercial case for putting employee well-being first.


The message is unmistakable: there are too many financial and psychological costs associated with ignoring employee mental health. Businesses need to understand how their financial performance and workers’ well-being are linked. Businesses may reach their maximum potential for productivity and profitability by making investments in mental health services, creating an inclusive and encouraging work environment, and coordinating with more general ESG goals.

This report serves as a roadmap for businesses looking to prosper in the competitive business environment of today, not merely a wake-up call. The welfare of employees is not just a moral obligation but also a tactical requirement in the quest of profit.

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