Burnout isn’t just something that happens in big corporates or high-pressure industries — it’s becoming increasingly common in small and mid-sized businesses too. When you’re running lean and everyone’s wearing multiple hats, it’s easy for stress to build up and for burnout to go unnoticed.

As business owners and leaders, it’s critical to recognise the early signs of burnout and take steps to protect your people — and your bottom line.

What is burnout?

Burnout is a state of emotional, mental and physical exhaustion caused by prolonged stress. It’s what happens when employees have been “pushing through” for too long without enough recovery time, support, or recognition.

The difference between stress and burnout

Stress is often short-term and situational — think tight deadlines, busy periods, or solving a tough client issue. Burnout, on the other hand, is more chronic. It develops over time and can lead to feelings of hopelessness, disconnection, and exhaustion.

The cost of burnout

Burnout doesn’t just affect the individual — it hits your whole business. The cost to Australian workplaces from mental health-related absenteeism and lost productivity is estimated at being in excess of $14 billion per year. Along with the financial pressure burnout places on a business, it places a huge drain on performance, culture and increases employee turnover.

Beyond the dollars, burnout can damage morale, culture, and your reputation as a positive place to work.

The causes of burnout

Burnout can stem from a range of workplace issues including:

• Wearing too many hats: Employees juggling multiple roles without clear boundaries
  
• Under-resourcing: Growing workloads without growing the team
  
• Always “on”: Lack of downtime or blurred lines between work and personal life
  
• No time for recognition: In busy environments, wins often go unnoticed
  
• Reactive leadership: Managers focusing on putting out fires, not checking in on wellbeing
  
• Lack of control: Not having any say in tasks or decisions that impact workflow or responsibilities.

Prevention is better than cure

There are some simple but effective steps you can take to mitigate the risk of workplace burnout within your team:

1. Normalise conversations about wellbeing

Encourage open conversations and check in regularly — not just about workload, but how people are really feeling.  Checking in and catching an issue before it becomes overwhelming can make a significant difference.

2. Set clear priorities

When resources are limited, everything can feel urgent. Be realistic about what’s achievable and communicate clearly.  Allow employees to speak frankly about what’s on their plate and work as a team to determine priorities – especially when they have multiple stakeholders briefing them on what’s important.

3. Establish structure and clarity

A well-structured workplace creates confidence and reduces the risk of burnout caused by confusion or role overlap. There are lots of business tools and processes that can assist such as:

• Organisational charts: Clear org charts help employees understand who does what and where they fit in. This reduces role ambiguity and can improve communication and decision-making.
  
  
  
• Clear reporting lines: When everyone knows who they report to (and who they can go to for support), it creates accountability and makes it easier to escalate concerns early.
  
  
  
• Defined goals: Employees are far more likely to stay engaged when they know what’s expected of them and how their work contributes to broader business outcomes. SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) are a great framework.
  
  
  
• Position descriptions: Accurate and up-to-date PDs help prevent scope creep and unrealistic expectations. They’re also a useful tool when assessing workloads and determining whether additional support is needed.
  
  
  
• Regular one-on-one meetings: These check-ins offer a dedicated space to talk through priorities, roadblocks and support needs. Done well, they can help surface small issues before they snowball.

4. Encourage breaks and boundaries

Model healthy work habits yourself — like switching off after hours, taking leave, and not sending emails late at night.

5. Recognise effort, not just outcomes

You don’t need formal awards — just a simple “thank you” or public shout-out can go a long way. Everyone likes to be appreciated!

6. Support your managers

Managers, just like their teams, can often feel stretched – balancing their work and the needs of their team. Giving them training or tools to spot the signs of burnout and handle tricky wellbeing conversations will help them resolve an issue before it gets out of hand.

7.Foster a safe and respectful workplace

Creating a respectful workplace isn’t just good practice — it’s a legal obligation. The Respect@Work report highlighted the link between workplace sexual harassment and broader organisational issues such as poor culture, lack of accountability, and unsafe power dynamics.

To build a safer, more respectful culture:

• Set clear behavioural expectations through policies, training and leadership role-modelling
  
  
• Ensure employees know how to report concerns safely
  
  
• Act swiftly and fairly when issues are raised
  
  
• Prioritise psychological safety so people feel comfortable speaking up

Preventing harassment and bullying not only protects individuals — it contributes to a workplace where everyone feels valued, safe, and supported, which is a strong buffer against burnout.

The impact of personal situations

It’s also important to remember that burnout isn’t always just about the workplace. Personal circumstances — such as caring responsibilities, financial stress, or mental health challenges — can significantly impact how someone copes at work. While we can’t control what’s happening outside the office, we can create a supportive environment inside it. This is where offering access to an Employee Assistance Program (EAP) can be incredibly valuable. It gives team members a confidential space to talk through personal or work-related issues with a professional — often before things reach a crisis point.

Burnout isn’t a personal failure — it’s a workplace challenge

The good news? Burnout is preventable. And when you take it seriously, you don’t just protect your people — you build a more resilient, loyal and high-performing team.

If you would like some help in creating and implementing strategies to prevent burnout in your workplace, please give us a call and one of our team can help!

Behaviours that impact others and breach the Respect@Work legislation can be responsible for burnout in the workplace.  Book our workshop on Respect@Work now so that your team has the appropriate training and knowledge to meet your business compliance obligations.