One thing I’ve been looking into since joining 3Sixty Insights has been the underemphasis on burnout at work and the need for more technology platforms to address it. Critics are quick to label this a “touchy-feely” subject, but it’s a core business challenge that directly affects engagement, productivity, and financial performance. As we saw in our 3Sixty Insights
benchmark report, unaddressed burnout can potentially cost businesses trillions through lost productivity and higher turnover rates.
With record-high burnout and ongoing economic uncertainty, now is the critical moment for employers to prioritize employee wellbeing. AI-driven HR technology offers viable solutions, enabling proactive burnout detection, improved workforce management, and healthier workplaces. Examples include automating scheduling to ensure fair workloads, early identification of burnout through analytics, providing wellness platforms with mental health resources, and supporting flexible, remote work options.
Yet, many organizations fall short. According to a recent
UKG study, one in five frontline employees globally reports that their managers never acknowledge their contributions. Add external economic stressors like inflation, high home prices, and rising interest rates, which disproportionately impact the average worker, and it’s clear why employee morale is declining. Economic imbalance exacerbates this issue, with
nearly half of all consumer spending coming from the top 10% of earners. Any downturn affecting this small fraction of society could lead to widespread economic repercussions, including job instability and increased workplace stress.
Meanwhile, AI continues to reshape the economic landscape. Significant investments from tech giants have raised concerns about an AI market bubble potentially poised for correction, threatening broader financial stability. While caution is justified, there’s also reason for optimism: automation and AI advancements can boost productivity, enhance employee wellbeing, and even generate new employment opportunities. However, businesses must use these technologies strategically to create supportive workplace cultures rather than merely chase efficiency gains.
Gen Z employees (ages 18-27 by 2025) are particularly vulnerable to workplace stress. The UKG study found that 83% of Gen Z frontline workers report burnout, and more than a third are considering quitting due to poor physical or mental wellbeing stemming from inflexible scheduling and unsupportive policies. Given that Gen Z will make up a third of the global workforce by 2030, their dissatisfaction with traditional employment structures demands attention.
Additionally, since Gen Z grew up in a labor economy where gig work was already normalized, they’ve developed a preference for flexible and balanced lives that challenge traditional employment norms and are poised to redefine future workplace dynamics. Their dissatisfaction—shown by 61% of Gen Z employees reporting negative employee experiences and 72% indicating worsened mental health due to workplace interactions—signals a clear need for change.
Forward-thinking workplace practices offer a potential path forward. 54% of frontline employers already offer flexible scheduling, with additional measures like shift trading, part-time work with full benefits, compressed workweeks, and job sharing gaining traction. The UKG study shows positive signs, with 66% of Gen Z and 61% of frontline employees believing their feedback genuinely influences organizational change. Despite challenges, 20% of frontline workers have remained with the same employer for over a decade, suggesting potentially positive employee experience strategies (or potential workforce immobility.) To build resilient organizations, leaders must embrace AI-driven tools and flexible practices and genuinely incorporate employee voices. This will create workplaces designed for long-term engagement and well-being.
