Companies that fail to adapt and offer flexibility to their employees can lead to long-term decline, finds new research by Aalto University School of Business.

The study, conducted by researcher Nikolina Koporcic-Nietola and her colleagues, explored the effects of a static approach on companies and found that it leads to employee burnout.

Employees of companies that are stagnant can experience emotional exhaustion, cynicism, and a diminished sense of personal accomplishment.

These symptoms can lead to decreased productivity, increased absenteeism, and higher turnover rates, ultimately affecting a company’s performance and bottom line.

“Effective burnout management depends heavily on leadership empathy, open communication, and a supportive organisational culture. Leaders play a pivotal role in shaping the mental health of employees and facilitating burnout prevention and reintegration,” says Nikolina Koporcic-Nietola.

Burnout is a progressive condition that requires proactive measures to avoid compromising employee health and organisational performance.

By managing burnout effectively, companies can not only improve employee well-being but also maintain business competitiveness, reduce turnover, and ensure long-term organisational success.