The Hidden Costs of Burnout to Organisations

allynitschke
Jan 1, 2026
2 min read

Burnout isn’t just a personal wellbeing issue, it’s a business risk that drains billions from the global economy every year.

The Numbers Don’t Lie

Deloitte estimates workplace stress and burnout cost the global economy hundreds of billions annually in lost productivity.
Safe Work Australia reports that psychological injury claims cost three times more than physical injuries and take four times longer to resolve.
Gallup’s research shows disengaged employees, many of them burned out, cost organisations 18% of their annual salary in lost productivity.

That’s not just expensive. It’s catastrophic.

The Ripple Effect

The financial cost is only part of the story. Burnout drives:

Attrition: Top performers leave, and recruitment costs soar.
Absenteeism: Sick days rise, projects stall.
Presenteeism: Employees show up physically but disengage mentally.
Reputation damage: High-profile burnout stories erode employer brand, especially with younger generations who won’t tolerate toxic cultures.

Why Leaders Can’t Ignore This

Treating burnout as “HR’s problem” is leadership negligence. The risks are systemic: culture, performance, profit, and brand all suffer.

Leaders must take ownership by:

Tracking the signals: Monitor turnover, leave patterns, and workload data.
Acting on risks: Redesign roles, reset priorities, and protect capacity.
Telling the truth: Admit when expectations are unsustainable and make the tough calls to change them.

Final Thought

Burnout doesn’t just hurt individuals, it bleeds organisations. Leaders who don’t address it will pay the price in lost talent, lost trust, and lost performance.

But leaders who face it head-on will not only protect their people, they’ll protect the future of their business.

If you would like to book in a time to speak with Ally: CLICK HERE.

Ally Nitschke is a best-selling Author, an award-winning Thought Leader and Speaker. She has been working with leaders and as a Leader for over 20 years.

She is on a mission to change the way we communicate at work, to lean into those uncomfortable conversations and lead with courage.

Ally is a Keynote Speaker at conferences, delivers Transformational Programs & highly engaging workshops as well as provides Executive Coaching.