Understanding burnout – why it matters and what to do about it

Most of us understand the importance of taking time off work when we’re physically unwell or injured. But in 2025, more workplaces are seeing staff call in ‘sick’ to mend their mental health. As the conversation around mental health continues to grow, so does the trend of mental health-related leave-and the need for employers to take proactive steps in supporting their teams.

Mental health days are now a standard part of leave policies in Australia and across the globe, reflecting a broader recognition of the importance of psychological wellbeing. However, these days off often address the symptoms, not the root cause, of workplace stress: burnout.

Recognising and addressing burnout early benefits both employees and employers. For hiring managers, understanding burnout is not just about compliance or care-it’s a key part of building a compelling Employee Value Proposition (EVP) to retain top talent.

What is Burnout?

Burnout is not a new concept. The first academic paper on “burnout” was published in 1974 but it wasn’t until  2019 the World Health Organisation (WHO) officially categorised and defined burnout as an occupational phenomenon caused by chronic, unmanaged workplace stress.

In 2025, burnout is more prevalent than ever with over 75% of workers say workplace stress has increased in the past two years (ABS, 2024).

According to WHO, there are three main dimensions that are indicative of burnout:

1. Feelings of energy depletion or exhaustion

2. Increased mental distance from one’s job, or feelings of negativism or cynicism related to one’s job

3. Reduced professional efficacy

Differentiating burnout from general disengagement

It is crucial in understanding the impact of prolonged effects from the pandemic on mental health. Burnout doesn't develop overnight, making it easy to overlook the warning signs.

The Maslach Burnout Inventory (MBI) is a valuable tool that has been refined over decades to identify burnout. By scoring employees on the three dimensions of burnout, the MBI distinguishes between those exposed to chronic work-related stress and those who are simply disengaged.

It's important to recognise that burnout, unlike general work dissatisfaction, involves a mental load that can drain the efficacy of high-performing staff without regular breaks. Mental fuel is a finite resource, and both the mind and body require sufficient rest to function effectively.

A recent study conducted by researchers at George Mason University demonstrated the benefits of breaks. Two groups of students were assigned a detailed task for 45 minutes, with one group given a short 5-minute break halfway.

Unsurprisingly, all students in the group with the break significantly outperformed their counterparts who sustained performance without a break.

The cost of burnout and the value of rest

While the financial costs of burnout are significant, the intangible costs to employees’ health, wellbeing, and family life are often overlooked. Prolonged mental strain without adequate rest can lead to:

• Reduced focus and productivity
• Increased rates of anxiety and depression
• Higher risk of physical health issues, including heart disease

More than half of workers report skipping breaks due to workload or workplace culture pressures (Safe Work Australia, 2024). Researchers have linked anxiety and heart disease due to the persistent strain on their hearts. 

Knowing the warning signs: What are organisations doing?

Organisations are prioritising and providing avenues for staff to proactively manage their mental health. A number of leading organisations, including Indeed, have implemented unlimited leave policies to foster guilt-free leave days. However, trends show that Aussies aren’t utilising these.

Here’s how you can embed these practices and stand out as an employer of choice:

1. Make mental health support visible and accessible

• Offer mental health days and flexible leave policies.
• Provide access to Employee Assistance Programs (EAPs) and mental health resources.
• Train leaders to recognise and address early signs of burnout.

2. Build flexibility into work

• Embrace hybrid and remote work options.
• Allow flexible hours to support work-life balance and individual needs.

3. Integrate wellbeing with DEI

• Run regular wellness programs, mindfulness sessions, and resilience workshops.
• Foster a psychologically safe environment where employees can talk openly about stress.
• Recognise that burnout can disproportionately affect minority groups and caregivers-ensure your wellbeing initiatives are inclusive.

4. Lead by example

• Encourage leaders to model healthy work habits and speak openly about mental health.

5. Embed Wellbeing into Your EVP

• Regularly review your EVP to ensure it highlights mental health, flexibility, and inclusion.
• Survey your teams, listen to their feedback, and adapt your policies to meet evolving needs.
• Clearly communicate your commitment to wellbeing and DEI in job ads, onboarding, and internal communications.

Here at Six Degrees Executive, we implemented the ‘Wello’ - a dedicated day where all employees can openly and actively plan a wellness day every quarter to rest, relax or do something to help detach from work and combat burnout.

The initiative allows us to convert a day of personal leave into a scheduled day away from work to rest and reboot so we can return to work at our best.

Implementing such programs and having the leaders openly demonstrate and celebrate the benefits of taking time to recover, paves a pathway for all to do so, openly. Having scheduled time out from work also helps negate the impact of employees calling in sick without notice.

If you're looking to revamp your EVP, or want to know the inside scoop of what leading organisations are doing for attraction and retention - reach out to the team below. 

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