The Cost of Layoffs, Pulling Back on DEI Grants, and Innovative Approaches to Preventing Burnout


News Spotlight

Leadership wants workers in the office. Despite studies showing the benefits of hybrid work, executives are pushing for their teams to be fully in-person, citing hybrid work’s impracticality and the advantages of being together (The New York Times).

Layoffs cost companies in the long term. New research shows that after layoffs, companies see significant drops in employee engagement and confidence in leadership, along with business declines (Harvard Business Review).

Companies pull back DEI grants. Amid broader pushback to DEI initiatives, corporate funding opportunities for diverse businesses are disappearing or becoming eligible to broader populations (The Wall Street Journal).


Stat of the Week

A recent study found that, while unlimited PTO became popular during the pandemic,, the share of job postings citing the benefit has declined since peaking in 2022. Despite the initial appeal of this offering to employees and employers alike, positions mentioning unlimited PTO take longer to fill (41.4 days vs. 33.9 days) and companies offering the benefit tend to have lower ratings than their competitors.

This is a sign that the initial promise of unlimited PTO was not realized as hoped, likely because it has not been well-implemented at most companies. The terms of unlimited PTO are often ambiguous, leading employees to feel confused about the exact stipulations and guidelines, and ultimately fearful of using it. For HR leaders still looking to leverage unlimited PTO, clear guidelines — along with an already trusting and supportive workplace — are essential to ensuring that employees truly benefit.


Deep Dive Article

8 Innovative Approaches for Helping Your Employees Prevent Burnout

Workplace burnout is hardly a new problem. But in recent years, it’s been exacerbated by the shifting needs and conditions employees face, as they adapt to hybrid work arrangements, rapidly advancing technology, and evolving demands for new skills. As burnout rises, employers are likely to see increased absenteeism and turnover, alongside diminishing job performance and engagement, with employees growing increasingly frustrated, exhausted, and dissatisfied.

The impacts can be significant, with burnout hampering employees’ productivity and even driving them to seek new job opportunities. Recent research shows that workers who are burned out are nearly three times more likely to be actively searching for another job (45% vs. 16% of those who did not report burnout). Another study found that about 20% of workers think about quitting their jobs daily, a clear indication of how severe and time-consuming this issue has become.

For companies, the costs add up. In the U.S., 19% of workers rate their mental health as fair or poor and report that they have about four times as many unplanned absences as their counterparts. These unplanned absences add up to 12 days in a calendar year — compared to just 2.5 days for those with good, very good, or excellent mental health — costing the economy an estimated $47.6 billion in lost productivity each year.

The impacts of burnout can also disproportionately impact certain groups, including women, LGBTQ+ employees, people with disabilities, and deskless (e.g., frontline) employees. These groups experience up to 26% higher burnout than their peers, a sign that inclusion (or lack thereof) can be a driving factor in today’s workplace.

New research from isolved found that eight in 10 employees (79%) have experienced burnout in the last year, impacting both productivity and engagement. Over half of the workforce (53%) surveyed reported that burnout has reduced their engagement, while a further 36% say it has minimized their output, leading them to effectively “quiet quit.” The study finds that burnout is especially high among younger employees, with Millennial and Gen Z workers 10% more likely to say they are burned out than their older colleagues. In fact, 58% of Gen Z workers list burnout as a top reason for their job dissatisfaction.

“Burnout is eroding employee engagement when companies need their teams to perform at their best. While 92% of employees say they are fully committed to their jobs and company mission, many are still struggling,” said Celia Fleischaker, Chief Marketing Officer at isolved. “Organizations that proactively address not only burnout, but benefits dissatisfaction, flexibility needs, and job insecurity — especially in the age of AI — will not only retain top talent but also cultivate a workforce that is empowered, resilient, and future-ready.”

The threat of burnout will not disappear anytime soon. Workers and their employers will contend with the impacts as workplace arrangements, expectations, and professional demands continue to evolve. To meaningfully support their teams, HR leaders must focus on both preventing and addressing burnout, ensuring that their workforces are able not just to survive — but thrive.

Here are eight innovative steps companies can take to help their employees avoid burnout.

1. Rethink the workweek.

In addition to remote work and hybrid models, compressed and shortened workweeks are becoming increasingly popular. Offering a four-day workweek or shorter working hours can give employees the rest and recovery time they need not just to get their work done but to invest in their health and well-being.

2. Provide mental health support.

Essential to combatting burnout is the provision of mental health services — including employee assistance programs (EAPS) that offer counseling and therapy, on-site therapists to help employees manage stress at the moment, and mental health days to encourage time off for emotional well-being. The burgeoning field of burnout coaching offers tailored support for employees dealing with the impacts of burnout.

3. Create fair and equal opportunities for success.

Inclusion is a key driver of worker engagement and well-being, so employers looking to address burnout must ensure that all their employees have access to fair promotion and development opportunities through mentorship, training, and career advancement. Additionally, companies should accommodate different work styles, providing spaces and resources that cater to different sensory needs, such as quiet rooms.

4. Ensure supportive leadership and open communication.

Leadership sets the tone for the workforce, so those at the helm must know how to address burnout. Managers should receive training on recognizing signs of burnout and supporting their teams through challenging times. Fostering a safe environment where employees feel able to express concerns and set boundaries without fear of repercussions is also crucial for long-term engagement.

5. Offer creative time off policies.

While core offerings like paid time off or sick days are key to workforce well-being, there are additional opportunities to help address burnout specifically. Unlimited PTO and mandatory vacation policies can help encourage employees to take advantage of their time off, while sabbaticals allow workers to take time for deep rest, personal development, and reflection.

6. Foster a culture of work-life balance.

Many workplaces that contend with burnout have tenuous work-life boundaries and employees who struggle to “turn off” at the end of the workday. Disconnecting should be the norm, with employees encouraged to log off after hours and to truly take time away on vacation. HR leaders should consider implementing email curfews to help employees unplug, along with no-meeting days to reduce the constant interruptions that can contribute to burnout.

7. Implement peer support networks.

For many employees, their best support can be found in each other. Mentorship programs that pair employees with mentors or peer support groups can help create a sense of community and provide a space to share challenges. Meanwhile, team-building and social events, while not direct solutions for burnout, can help employees develop resilience and support networks.

8. Consider creative engagement strategies.

There are many innovative options available to HR leaders looking to support their teams in new ways. Allowing employees to spend a portion of their times on passion projects outside their usual job responsibilities can make the workday more enjoyable and reinvigorate their enthusiasm for work. Employers can also consider job rotation, where employees rotate responsibilities or periodically switch teams to help reduce monotony and deepen their investment in the business.

Support employees from the start.

While burnout is likely to continue to be a challenge for companies and their employees, there are many innovative actions companies can take to not only address concerns but build better, more resilient workplaces. New technology is constantly emerging to help workers with burnout, ensuring that they are satisfied and thriving in the workplace.

To address many workplace concerns, including burnout, isolved has introduced multiple AI-powered enhancements that ensure employees get started on the right foot before and during the hiring process. For example, the company’s Job Ad Authoring enables HR teams to create targeted, engaging job descriptions to attract candidates with greater speed and accuracy while Candidate Matching uses AI to score candidates based on their qualifications and fit, significantly reducing time-to-hire and increasing the likelihood of making the right hire.

Digital tools like these allow HR leaders to design a strong employee experience from the very start, helping to set their teams up for success in the long term. They also create recruitment efficiencies for HR teams, allowing them to focus their time on the more complex challenges faced by their workforce — including burnout.

Thanks for reading — be sure to join the conversation on LinkedIn and let me know your thoughts on this topic!


Quote of the Week

“Always work hard and have fun in what you do because I think that's when you're more successful. You have to choose to do it.”
Simone Biles


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