Manager stress: New data reveals how managers are coping with employee burnout

Managers are on the frontline of dealing with employee burnout – and according to Sonder’s latest survey data*, many are feeling ill-equipped to do so.

Our research also found that the more an employee is paid, the more likely they are to consider leaving their role for work-related reasons. 34% of leaders earning over $180k* considered leaving their role due to work reasons, showing there’s higher-than-average turnover potential for those in management positions.

While staff turnover is disruptive, manager turnover poses even bigger business risks. As an organisation, losing a manager can mean a loss of internal knowledge, a spike in hiring costs and even the ripple effect of more resignations within a team.

So, what can your company do to combat rising managerial pressure? In this blog we deep dive on the data around manager stress, the business impacts of not taking action, and how Sonder is making managing a team more manageable.

Managers and leaders are regularly expected to go above and beyond in today’s workplaces. However, employee burnout is on the rise, with staff facing more challenges inside and outside the workplace than ever before.

This includes everything from employees worrying about meeting normal living expenses (42%) to navigating sleep troubles (36%) and even feelings of isolation and loneliness (28%).

Despite these rising concerns, only 50% of managers* agree their employer has provided sufficient support and training to effectively support their team’s wellbeing.

With rising pressure, and a lack of support, It’s not surprising that the Australian HR Institute’s latest State of Wellbeing Report  reveals that 68.5% of Australian workers feel they’re on the verge of burning out at work.

And once again, it’s managers who are shouldering the biggest burden. The same report found that leaders were not only more likely to report feelings of burnout, but they are least likely to say they’re ‘consistently thriving’ at work too.

Without the right support and tools in place, managers are regularly stepping outside of their role’s remit in order to support their teams. The AFR has even named this trend of leaders becoming ‘accidental counsellors‘ at work.

So, what’s behind this expectation for managers to take on counselling responsibilities at work? It really boils down to three key factors:

• Limited access to wellbeing resources: In some cases, companies aren’t providing the right external support to allow employees to take care of their mental health wellbeing at work.
• Lack of awareness of what resources are available: In other cases, employees are aware of the support available to them or who to reach out to for help. In fact, over a third of the employees (33%)* we surveyed didn’t know whether their company offered any wellbeing support programs.
• Seeking out a trusted ally at work: In either case, managers tend to be the first port of call when a direct report is facing mental health or wellbeing challenges. That’s because employees have often cultivated a closer personal relationship with their manager and may feel more comfortable bringing up these concerns during regular 1:1 meetings with leaders.

For managers, their performance is often measured by the performance of their team. If a manager is struggling to cope, this can have flow on effects across entire departments and the organisation as a whole. Gallup’s research found that managers or team leaders alone account for 70% of the variance in team engagement.

In our survey, 40%* of employees surveyed cited ‘poor support from managers’ as having some or a significant impact on their performance at work. Without the right support structures in places, leaders can feel pressured to take it upon themselves to figure out how to support their employees-even if they have no formal training to draw on.

At an individual level, manager stress can have significant negative impacts. But turning a blind eye to managerial pressure can have business-wide impacts, impacting everything from productivity to staff retention and employee turnover rates.

While 70% of Australian employers were more concerned about employee turnover in 2023 than in 2022, nearly half (43%) admit they’re not able to address their worker’s key concerns to entice them to stay.

So, what happens if a company avoids dealing with the root causes of manager stress?

• Increased staff turnover: Bad management is one of the key reasons why employees leave a company. For many employees, dealing with a boss who is overworked and not coping in their role can lead to job dissatisfaction, particularly if it’s left unaddressed for a long period of time.
• Poor employee morale: High rates of turnover can force remaining team members to pick up the slack in the interim. The more overwhelmed and overworked a team is, the lower an organisation’s employee engagement score is likely to be.
• High costs of manager turnover: Losing a leader is even more disruptive than a regular employee, leading to a further drop in team morale and low employee engagement.
• Rise in risks associated with new staff: The recruitment process brings additional costs (from running interviews to conducting reference checks and onboarding new hires). Even once a new starter joins, businesses are exposed to additional risks (such as new safety risks in skills-based industries and a loss of internal knowledge and client relationships for knowledge-based industries).

But this doesn’t have to be the case. By proactively addressing the causes of manager pressure head-on, companies have a unique opportunity to lower staff turnover, boost team morale and increase productivity-all while helping team members at every level bring their best self to work.

Managers and people leaders do have a duty to foster psychological safety within their teams. But, they shouldn’t be expected to play the role of a psychologist for your employees.

It’s why digital care platforms, like Sonder, are designed to empower your people to actively take control of their wellbeing so they can live well and perform at their best.

Sonder’s proactive care platform gives leaders the tools they need to support your team:

• Self-serve, scalable support: We put care in the palm of your team’s hands. Our app’s extensive resource library offers easy-to-digest content, allowing your managers to refer employees to articles, assessments and even meditation recordings to empower individuals to take care of their own wellbeing.
• Access to immediate expert help: If a team member approaches their manager with a specific issue, leaders can refer their teams to Sonder for immediate assistance across mental health, medical and safety support. Managers themselves can also get in touch with Sonder for advice on how to handle tough conversations and sensitive topics with their staff.
• Critical incident support on speed dial: If something happens on-site or in-store, our responders will make an in-person visit to deliver psychological first aid and ensure workers feel safe-taking pressure off managers who may be in need of support, too.
• Timely welfare checks: If a manager has concerns about the safety of an employee, Sonder can conduct a welfare check on their behalf. Depending on the severity and circumstances, this could involve a phone call or in-app check-in through to in-person check-ins.

Sonder supports managers to get back to doing what they do best. With practical resources, on-demand support and in-person care available 24/7 via the Sonder app, managers and employees can access expert help in seconds.

Not only does this drastically reduce the amount of management time lost, but businesses can gain insights into which leaders are struggling. From there, companies can make proactive decisions about how to better support managers with training or operational changes.

Get a personalised estimate of what Sonder could save your business in employee turnover and absenteeism costs with our ROI calculator.

Across all industries, companies are seeing huge reductions in staff turnover since implementing Sonder among their teams. It’s a powerful testament to the power and positive impact of taking a proactive, holistic approach to employee care.

Our calculator estimates your business’ potential return on investment, based on your company size and other details. It can also help you gauge a projected boost in productivity based on reducing absenteeism, helping you make the business case for a complete care platform, that intervenes earlier.

Experience a modern approach to employee care. Get in touch with Sonder today to discover how our platform can benefit your organisation.

*Source: September 2023, McGregor Tan survey of employees in Australia and New Zealand who were working a minimum of 30 hours per week.

Sonder is a technology company that helps organisations improve the wellbeing of their people so they perform at their best. Our mobile app provides immediate, 24/7 support from a team of safety, medical, and mental health professionals – plus onsite help for time-sensitive scenarios. Accredited by the Australian Council on Healthcare Standards (ACHS), our platform gives leaders the insights they need to act on tomorrow’s wellbeing challenges today.