Workplace dynamics: From burnout to disengagement

In the years since the pandemic there have been a number of trends impacting talent retention ranging from quiet quitting, loud quitting, quitting after a promotion, the great resignation, the great breakup (which is focused on women leaving the workplace) and the great conversation.

Today, business leaders must pay even closer attention to team members’ well-being due to either burnout (low or no energy for work) or bore-out (complete disengagement).

With respect to burnout, some observers have said there is a global human energy crisis, with 48 percent of employees and 53 percent of managers reporting they’re burned out at work.

The reality is when people are burned out, they are less engaged. Low engagement costs the global economy $8.8 trillion or 9 percent of global GDP.

Now more than ever, with a tight labor market, the key to getting and maintaining a competitive edge is not only developing people and managing them well, but also ensuring their well-being is maintained.

Failure to support employee well-being costs $322 billion per year globally in lost productivity. While low well-being and burnout remains a very real problem, growing employee disengagement (aka “bore-out”) has moved to the forefront.

Burnout is an emotional, physical and mental response to prolonged stress, while “bore-out” is lack of motivation, commitment and care, and it is taking a heavy toll on Millennial and Gen Z employees.

A 2024 Gallup global study found the percentage of engaged older Millennials has declined by 7 percent and engaged younger Millennial and Gen Z workers has declined by 5 percent. Meanwhile, Millennial and Gen Z workers who have already emotionally checked out from their jobs grew by 6 percent total.

In other words, businesses are losing the ones who once cared and gaining more of those who don’t care at all. But there is a light at the end of the disengagement tunnel, and it resides in managers.

Gallup found 70 percent of the variance in team engagement can be attributed to a manager’s leadership.

Boosting employee engagement can be attained through strong middle managers who are well trained and empowered to advocate for their teams and develop and support them so that they are inspired and not indifferent.

IFPA believes leaders should focus on purpose and culture to align and engage employees to drive businesses forward, which also suggests a shift from traditional metrics like turnover to a “passion index” to measure engagement and productivity.

Organizations should embrace human sustainability by helping employees become healthier, more skilled and connected to a sense of purpose and belonging.