FRESH TAKES ON BIG IDEAS

It’s clear from the data: employees are struggling with burnout and mental health. What’s also clear is that organizations want to support their workforces’ mental health, both because it’s the right thing to do and because healthy employees are more productive, fulfilled workers. But for leaders, how exactly to create supportive work environments isn’t always as clear.

At the McKinsey Health Institute (MHI), we define burnout as a phenomenon that happens when your job demands outstrip your resources to perform your job. It’s when you have too many things to do, and not enough tools, energy, or mind space to do them.

Based on a survey of more than 30,000 employees from around the world, we know that about 20 percent of employees in the global workforce are experiencing symptoms of burnout. Burnout can contribute to alienation, distancing, exhaustion, and even cognitive impairment, and it puts people at risk for increased anxiety, depression, and substance use.
 
A particularly worrying trend is that young people are experiencing poor mental health at a much higher rate than their older counterparts. Of all the generations, Gen Z has consistently shown increasing rates of anxiety and depression. One in four Gen Zers McKinsey surveyed globally in 2022 self-reported poor mental health. That’s three times the rate of baby boomers. We know this not just through self-reporting but also through epidemiology. During the pandemic, there was a 50 percent increase in children showing up at emergency departments with suicidality.

What’s behind this? Social media tends to be an easy scapegoat because increases in mental health problems appear in parallel to its rise. But there are other factors in play, like changes in social connection, family structures, and even our diets.

“We see a 23 percent difference in the profitability of businesses whose employee engagement scores are in the top percentile compared with the bottom.”

A recent academic report found that the top driver of mental health pressures in young people in the United States was a lack of meaning, purpose, and direction. Half of young adults in the survey said that their mental health was negatively influenced by not knowing what to do with their lives. This malaise in the workforce of the future is a concern for employers.

Gen Z workers may be more prone to burnout because many are entering the workforce with preexisting high levels of stress. You have a large percentage of future workers showing signs of mental health distress, and a significant portion of current workers experiencing burnout. Employers have a lot to gain by helping provide solutions: our research shows that if employers proactively invest in employee health and well-being, there’s the potential to increase global GDP by up to 12 percent. So what can employers do?

MHI has found that solutions to employee burnout frequently begin at the top. One of the leading causes of burnout is a toxic workplace. That means employees don’t feel supported, respected, or included. Leaders really need to look at the environment they’re creating for their workers. A global pharmaceutical company, for example, created a role modeling program for 250 leaders that aimed to help them understand how they’re communicating, supporting their employees, and creating a culture where people can thrive. Other companies have included specific targeted training in their onboarding programs, including buddy programs pairing new joiners with more experienced colleagues.

It’s also up to leaders to create the vision and mission for organizations that younger workers can believe in. Gen Zers probably aren’t going to stay in a job for 40 years and retire with a gold watch. They believe they are meant to achieve something, to do something big and important, and when they don’t have that, they often feel an emptiness. This is an opportunity for C-suite leaders to support all their employees in feeling that connection to purpose and meaning in the workplace. 

Our research indicates that if organizations can help people feel better, they’re also going to work better—and become an employer of choice for young professionals. We see a 23 percent difference in the profitability of businesses whose employee engagement scores are in the top percentile compared with the bottom. These are major bottom-line impacts for employers.

ABOUT THIS AUTHOR

Kana Enomoto is a partner and director of brain health at the McKinsey Health Institute. She is based in McKinsey’s Washington, DC, office.