Managing burnout and creating a happy workforce – the buck stops with leaders

Businesses will soon be unable to keep hold of talent if they do not prioritise what their people want – and need – from them. Talent retention is a key issue the HR function is facing, whether this is due to a poor work-life balance, employees feeling undervalued or a lack of development opportunities.

People are unhappy in the workplace. Research shows that nearly half (47%) of employees surveyed report feeling stressed or overwhelmed at work. And findings from MHR reveal two-thirds of the UK workforce do not feel they are in a work environment where they can self-care and look after their wellbeing, with 70% of employees saying they feel underappreciated within their organisation.

Businesses will soon be unable to keep hold of talent if they do not prioritise what their people want – and need – from them. Talent retention is a key issue the HR function is facing, whether this is due to a poor work-life balance, employees feeling undervalued or a lack of development opportunities.

This seems to have been the case since the pandemic, but what happens when talent retention impacts the people function itself? Payroll is one vital function across the business that is often overlooked and undervalued, despite the pivotal role it plays in ensuring people can live their daily lives.

Recent research launched during National Payroll Week – a time meant to champion the voices of payroll workers – has found that when asked whether they plan to be working in payroll in five years’ time, 40% were unsure. Not just unsure about whether they’ll be in their current role – but unsure whether they’ll be in the industry.

While this is of course a cause for concern, it’s also a challenge that can be dealt with swiftly if leaders place the right level of importance on addressing payroll worker unhappiness now.

Burnout as the workplace theme of 2024

‘Burnout’ is a term we’ve heard a significant amount over the last few years. The World Health Organisation included burnout as an occupational phenomenon in 2019, defining it as a syndrome that stems from “chronic workplace stress that has not been successfully managed”.

The key takeaway is that burnout is synonymous with unmanaged stress. This is impacting the payroll sector, with 34% of workers surveyed citing high levels of stress as the reason for their uncertainty about staying in the function within the next five years.

But what causes stress in the first place? The obvious answer is being overstretched and working long hours, but there are also other causes. For example, a lack of autonomy over workload and outputs; limited growth opportunities; and issues around not having the right support in place – whether this is people or technology – to help deliver on objectives.

If burnout is being caused by unmanaged stress, then the questions business leaders must ask themselves are whose job is it to manage employee stress and what are the measures they can put in place to make sure employees feel valued?

Empowering payroll workers to thrive

The first step in managing any form of workplace unhappiness involves taking the time to understand why people are feeling burnt out.

For those in the payroll function, stress, job security and a lack of investment is causing them to want to quit. People need to feel like they can grow in their career and yet low skills and confidence are damaging this, with only 45% of payroll professionals excited about the future of the industry.

Workers are not being prepared for the crucial role they will play in the payroll sector, and this is causing them to become unmotivated. Employees have made it clear they want greater investment from the business to ensure they are not only being provided with the tools they need to augment their role, but also so they can continue upskilling and learning on the job.

AI is a great example of a technology that has the potential to support the way people work, managing concerns around stress and making careers more productive. But implementing AI solutions needs to be through a people-first lens and not a technology roll-out for the sake of it. This will keep people loyal to the company as it ensures employees understand solutions are being put in place to augment their natural skills, returning time and value to them and making the work they do more rewarding and empowering.

For payroll workers, that could mean more time available to support the wider workforce in managing their financial wellbeing. Which in the current cost of living crisis is a vital support all organisations should be considering and prioritising.

If people receive the investment and knowledge they need to upskill, the company is more likely to grow into a sustainable and high-performance business that effectively balances stress management and productivity.

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