The UK is stressed out. That’s according to Mental Health UK’s recent Burnout Report 2025, which shows nine in 10 of us experienced high or extreme stress during the past year.

One in five people needed to take time off work due to poor mental health, with the worst affected aged between 18-24.

Burnout - the emotional, physical and mental exhaustion caused by prolonged stress – costs the UK economy an estimated £700million. For individual businesses, reduced output, low morale and absenteeism can have a catastrophic effect.

But what role can businesses play in reducing burnout? Lisa Thomson, chief people officer at software firm Clear Sky Logic joined me on the Recruitment and Beyond to discuss the importance of purposeful leadership and mental health support.

Burnout isn’t tiredness

We all know what burnout means. Or do we?

Lisa argues for the need to clearly define burnout, to avoid mislabelling. More than feeling overtired or overworked, burnout is chronic pressure leading to extreme overwhelm.

Conflating occasional instances of stress with burnout can muddy the waters and even downplay its severity, meaning tell-tell signs go unnoticed.

Causes of burnout

An employee experiencing burnout might seem disengaged or cynical towards work. They may behave less professionally or be less effective in their roles.

But beyond recognising the symptoms of burnout, what can businesses do to reduce the likelihood of burnout happening?

Employees cite major contributing factors to burnout as persistent excessive workload, cost of living pressures, fears about redundancy and feelings of isolation at work. Clearly, in current economic and cultural conditions, these worries are not unfounded.

It’s vital, then, for employers to actively engage with employee concerns. Leaders must be clear on the real challenges facing employees. Open communication can help, whether that’s through townhalls, feedback groups or employee surveys.

Preventing burnout

Once they have a clearer picture of their employees’ personal circumstances, businesses are better equipped to respond to burnout and even pre-empt it.

There is no one-size-fits all solution, as the challenges facing employees can vary by industry, region and employee demographics. However, Lisa outlined some of the steps employers could consider taking to reduce the likelihood of burnout.

1. Fostering a positive working environment

Companies with a toxic workplace culture are breeding grounds for burnout. Bullying, micromanagement, unrealistic expectations and a lack of recognition all contribute to low output and a high staff turnover.

Addressing these issues requires a commitment to change, open communication, and strong leadership. Lisa suggests: “implementing clear ethical values, promoting inclusivity, and recognising employee achievements”, which she says can: “transform the workplace into a supportive environment that deters burnout.”

2. Recognising employees

Regular recognition and rewards for employees' contributions can boost morale and motivation.

This recognition doesn't always have to be monetary; verbal acknowledgment, public appreciation and opportunities for career development can significantly improve an employee's sense of value and security.

3. Implementing flexible working arrangements

Right now, we’re seeing a push for workers to return to the office. But Lisa argues that flexible working – including the ability to work from home – can help lower the risk of burnout.

Being able to attend an appointment, pick the kids up from school or even go for a walk without needing to clear it with an employer gives employees better control over their own lives. For some, fully remote work is a necessity. Working from home has been found to help keep mothers in employment, for example.

But for others, in-person work is a much needed source of social-interaction – we shouldn’t underestimate the value of the watercooler conversation to our mental health.

The key here for employers is choice – offering remote, hybrid and flexible working options will help employees to find work-life balance in a way that works best for them.

4. Helping employees understand burnout

There’s no escaping stress altogether. While companies can play a big role in reducing burnout, employees also need resilience to navigate the workplace. Businesses can help employees to strengthen that resilience by providing education on mental health and stress management.

Resources like counselling services and wellness programmes can be beneficial, as can encouraging employees to switch off after work and take their full holiday leave allowance.

Equipping employees with the tools they need to manage their own stress levels will help them to handle work-related pressures more effectively.

Final thoughts

In challenging economic times, employees are at a high risk of burnout. Responding to and preventing workplace burnout requires a comprehensive strategy that addresses organisational culture, leadership practices, and individual support.

By fostering a positive work environment, offering flexibility, providing resources, and recognising employee contributions, organisations can mitigate burnout and promote a thriving, productive workforce. Proactive measures not only enhance employee well-being but also contribute to the organisation's long-term success.

Listen to Lisa’s episode of the Eden Scott Recruitment and Beyond podcast.