Fifteen to twenty years ago, if we had talked about burnout in our business, we would have all thought we were talking about a faulty motor or gearbox on one of our machines! Now we hear the term more frequently and we read burnout is at an all-time high within businesses large, medium, and small.
So how do you avoid burnout arising in a business with less than one hundred employees? Lots of excellent research is available, but often based on large corporates. What about the small, and small to medium-sized company (I call these scale-ups)?
Well, for a start it is worth understanding exactly what the term burnout means. The World Health Organisation addresses burnout as being an “occupational phenomenon.” It goes on to say, “It is driven by a chronic imbalance between job demands and job resources.” Signs to look out for in an employee are “extreme tiredness, reduced ability to regulate cognitive and emotional processes and mental distancing.”
As a former Managing Director of a company with sixty employees in an engineering environment, I needed to break this explanation down into examples and lay-person terms to truly understand this. Part of my reading on the subject included the McKinsey Health Institute report on Addressing Employee Burnout: Are you Solving the Right Problem? published back in May 2022. That title alone really struck a chord with me and my own experiences.
I understand the “chronic imbalance between demands and resources” as being the relentless, never ceasing to-do list, with never enough time, or capable team to deliver it, nor the right tools to do the job. Burnout often originates with frustration – starting small, but soon leading to creating a toxic working environment.
I remember when I first started out in business, over 30 years ago, learning about karoshi – the Japanese culture of working oneself to death – quite literally. It seemed so alien to consider that people would drive themselves so hard, they would die, usually from heart attack, stroke, or suicide. So, burnout is not a new phenomenon although karoshi, in its extreme form, is more geographically linked to Asia and specifically to the Japanese culture, economic and political policies and expectations.
Closer to home, I look back at what some typical frustrations were in my previous business with a few examples:
- snail-speed computers resulting in hours to produce a 3D drawing
- network going down at always the worse time ever
- the feeling like you are the only person the manager asks to take on additional tasks
- having to do jobs other people are seemingly employed to do so the job gets done quicker
- constantly chasing people for them to complete their part of their process well
- being asked to work overtime with little notice.
Frustration was bubbling around our business all the time, often rippling up and downstream within the organization as demand ebbed and flowed. It was a sign we were growing, but we had not anticipated the impact and prepared for it, before resources became stretched.
Leadership Responsibility
As companies scale, you hire new people. The business outgrows systems, tools and processes and frustrations will build if leadership response lags. It is a manager’s job initially, and ultimately a leader’s job, to spot them whilst manageable to ensure frustrations are turned into opportunities and boost morale. Left to fester and take hold you are on the path to driving even your most adaptable of employees to burnout.
Male Workforces
For over 30 years I worked with a male workforce (the balance was shifting by the time I left I am pleased to say). It was difficult to spot signs of burnout through extreme tiredness, overly emotional responses, basic error-making, and lack of engagement. In my experience, male employees mask the symptoms too well. I was often notified that an individual was being awkward, grumpy, or simply could not be bothered. It was only when the same individual’s name cropped up regularly I then took notice and more importantly, action. I had one case of true burnout and a handful of near misses over the years but when it did happen, it was mortifying to think I had not acted earlier to help that individual when they really needed it. I understand this links strongly with the wider issues around male mental health and how difficult it is to be able to talk about how you feel for fear or embarrassment about the response. But as an MD who cared about my workforce, I reflected on what I could have done better.
Getting the fundamentals right
What I do know is that implementation of a wellbeing plan would not have addressed the issues. I openly embrace all the wonderful wellness plans and new ways of working so we can improve our mental health whilst at work. It is the way forward. But without looking at the underlying culture, values, vision, accountability throughout the company, workforce skills matrix, what it takes to perform each role, the business operation, types of customer contracts undertaken and so on, it is a false economy for a small business scaling to a medium-sized business to assume introducing a four day week, a yoga programme or a mental health counsellor will retain great staff, make your business a great place to work and put the required profits on the bottom line. I believe if you have not taken a deep dive under the covers of the business, these initiatives will simply buy you some time at best. Your great staff will still leave feeling burned out, you will not attract talent and the profits on the bottom line will start to erode.
So, based on Mckinsey’s research, some areas business leaders of smaller scaling companies could start reviewing are: –
Workplace Factors – Go Ask These Questions
And most importantly actively listen to what is said and what is NOT said…
1. Do we have a toxic working environment?
If someone says yes, do not ignore, listen hard and investigate – if someone feels belittled, isolated, undervalued, then this is being fed from somewhere. If someone says no, ask for examples to confirm why not.
2. Do you feel included, do you feel like you belong here?
3. Is your workload manageable?
Do you have the right skill and experience level? Do you switch off when you go home? If they say “no” dig deeper. If they say “yes,” dig deeper still.
4. Do you feel well represented by your manager?
5. Are there any stigma’s, prejudice, or discrimination of employees?
Are you uncomfortable in any situation? You need to get close and listen in to really determine this.
6. Is the team aligned in the organisational goals and direction?
If people are pulling in different directions, this creates tension and builds frustration.
7. How effective is our current mental health and employee well-being policy?
Have you read it? Do you feel safe and secure following the company policy? Ask individuals how much they trust the process and would they use it.
This is one for you MD / CEO –
8. How committed are you to your employee’s mental health and employee well-being?
An engaged person who feels like they are valued, remunerated accordingly and they belong will go a lot further in delivering your business strategy than someone who does not.
9. Do you have everything you need to do your job?
If not, what do you need and how will this improve things for you? If there is investment required to address the issues, then first check what the ROI will be – tangible and intangible? More importantly work out the cost of NOT doing anything.
If you are short on time, then at the very minimum, regularly ask:
- Is the workload manageable?
- Are the role expectations clear?
- Do we have the right person in the right seat?
- Do they have the right tools and time to do the job?
- What can I do to help you?
These are some of the topics I cover in my Scale-Up Success Factor workshops. If you are interested in learning more, please contact me.
