Burnout rises to 61% in NZ as financial stress impacts workers

The Wellness at Work Report 2024 for New Zealand by Employment Hero indicates a rise in burnout, with an increase to 61% of respondents experiencing its effects compared to 53% in 2022.

The study surveyed 1,002 New Zealand employees between April and May 2024, highlighting financial pressure as a significant cause of stress.

Overall, nearly one-third of respondents cited financial strain and the rising cost of living as their main sources of anxiety. This financial stress influences both the economic and mental health of employees.

Gen Z employees, in particular, are experiencing higher levels of stress and burnout compared to other age groups. Seventy per cent of Gen Z workers reported experiencing burnout in the past three months, while almost half feel stressed multiple days each week.

Employment Hero's report also reveals some positive aspects of workplace conditions.

Although burnout rates are high, 60% of Kiwi workers report being content with their mental health, suggesting an adaptation to stressful conditions where 43% of participants admit experiencing stress several days a week.

Social aspects of work appear strong with 84% satisfaction with workplace relationships and a similar percentage reporting good relationships with their managers. Such findings suggest that interpersonal work dynamics remain robust despite the overall stress environment.

Flexible work arrangements and specific benefits are seen by employees as valuable in mitigating stress impacts. Nineteen per cent appreciate flexible working conditions, while 15% identified perks such as healthcare discounts and upskilling initiatives as beneficial.

Ben Thompson, CEO and Co-Founder of Employment Hero, commented: "The latest findings reveal that Kiwi employers are stepping up to prioritise employee wellness, even as burnout rates climb."

"While it's encouraging to see that 65% of employees feel supported, we cannot ignore the rise in stress and the cost of living challenges. We hope this report inspires more businesses to make wellness a core part of their strategy to foster resilient, productive teams."

In addition, Jay Barrett, Workplace Psychologist at Glia, emphasises the necessity of equipping teams with strategies to handle stress. He stated, "To protect mental health in today's demanding environment, it's essential for employers to equip teams with psychological strategies and ensure leaders are prepared to support those facing challenges. A multi-faceted approach—one that builds resilience and sets up supportive structures—can significantly enhance well-being and success at work."

Key insights from the report include that 69% feel productive at work despite experiencing burnout, reflecting a noticeable resilience. Among hybrid workers, 57% rate their work-life balance as better than average, demonstrating a preference for the flexibility such arrangements provide.

The report also stresses that while progress has been made, there remains room for improvement. Nearly half of the respondents are comfortable discussing mental health with managers, though 48% report being off-track with their financial goals, evidence of ongoing financial challenges.

Critically, 47% of employees perceive their workplaces as insufficiently supporting their needs amidst the climbing cost of living.