The Hidden Cost of Workplace Fatigue – And What You Can Do About It

Workplace fatigue is no longer a silent issue in New Zealand—it’s a growing crisis. Recent research reveals that a staggering 66% of Kiwi workers are grappling with burnout and work-related exhaustion. It’s a confronting figure that speaks to a broader trend of chronic stress infiltrating the modern workforce. While some level of pressure can serve as a motivational force, ongoing unmanaged stress and fatigue can take a serious toll on both individual wellbeing and business performance.


Burnout is more than just feeling tired. According to the World Health Organization, it is a syndrome resulting from chronic workplace stress that has not been successfully managed. It's characterised by exhaustion, cynicism, and reduced professional efficacy. Fatigue, on the other hand, is often temporary and resolves with rest—unless it becomes chronic, which can lead to sustained exhaustion and even physical illness.


Workplace fatigue is no longer an individual issue; it’s an organisational risk. Left unaddressed, it leads to diminished productivity, higher absenteeism, and increased turnover. And with economic uncertainty, the cost-of-living crisis, and workplace restructuring contributing to employees’ stress loads, the risk is only rising.


”In fact, she shared that businesses who invest in engagement and wellbeing see significant return"


In a recent conversation on our live stream, Frog Recruitment’s New Zealand Managing Director Shannon Barlow sat down with Claire Day, Director at Culture Wise, to unpack the pressing issue of workplace fatigue. Their discussion illuminated both the causes and consequences of this growing problem, while offering valuable guidance for leaders looking to tackle it head-on.


Claire began by clarifying the important distinctions between burnout, stress, and fatigue. “Burnout is specifically a work-related phenomenon… leading to fatigue and exhaustion and disengagement,” she explained. Fatigue, meanwhile, may come and go with rest—but chronic fatigue signals deeper systemic issues that require proactive intervention.


When asked about the biggest contributors to burnout in the workplace, Claire noted, “Excessive workload is probably the main thing… but also uncertainty and managing change.” This includes ongoing restructures, redundancies, and the pressure on remaining staff to “do more with less.” She also cited leadership style, interpersonal conflict, and hybrid work transitions as key stressors.


Beyond the workplace, Claire highlighted the cumulative weight of stressors in people’s lives—global crises, national economic pressures, and personal health concerns. “Work-related pressures don’t exist in a vacuum,” she said. “People bring their whole selves to work.” This holistic view is crucial for any organisation aiming to address fatigue effectively.


The ripple effects of fatigue can be devastating for team dynamics and business success. As Claire put it, “Exhausted people do struggle with focus and decision-making… and burnout can erode the engagement of even the most committed employees.” In fact, she shared that businesses who invest in engagement and wellbeing see significant returns—up to 23% higher profitability and 18% higher sales.

Despite some positive steps, there remains a significant gap between awareness and action. “We asked 46 senior leaders how 2024 was going for them—not one said it was great,” Claire revealed. The reality is that many leaders are overwhelmed, making it difficult to prioritise wellbeing as a strategic business initiative.


Yet, the need for action has never been clearer. “Some businesses think it's not our job to fix things that are outside of work,” Claire said. “But because they impact how people show up, smart leaders will actually consider how to support people in those spaces.”


Practical Steps to Address Workplace Fatigue


If you’re a leader wondering where to start, here are several practical strategies that can help tackle workplace fatigue and promote a culture of wellness:


1. Make it a strategic priority. Wellbeing should not be a nice-to-have. It must be embedded into leadership decisions and viewed as a key business objective. When it’s treated as a core strategy, it receives the investment and attention it deserves.


2. Support your leaders first. Leaders set the tone for the rest of the organisation. Equip them with the skills and awareness to manage their own wellbeing and lead by example. A supported leader is better equipped to support their team.


3. Tackle workload challenges. Open conversations around priorities and resource management can help reduce the burden on staff. Encourage ongoing dialogue about expectations and identify areas where workload can be better balanced.


4. Foster transparency. Honest communication around business changes, job security, and future plans builds trust. In uncertain times, clarity from leadership is a stabilising force.


5. Provide access to wellbeing resources. From health checks and subsidised gym memberships to resilience training and flexible work policies, a wide range of options can empower staff to take ownership of their health.


6. Empower personal accountability. While organisational support is crucial, employees must also feel encouraged to manage their own wellbeing. Simple steps—like promoting awareness of health screenings or self-care resources—can help foster a sense of control.


7. Encourage feedback and shared responsibility. Employees should feel they can openly discuss what’s hindering their productivity and wellbeing. This two-way dialogue builds a culture of trust and shared commitment.


8. Avoid ‘quick fixes’. A day off or a team-building activity won’t undo the effects of chronic fatigue. Sustainable change requires a long-term, strategic approach rooted in empathy and action.

Ultimately, tackling workplace fatigue is not just about reducing stress—it’s about enabling people to thrive. As Claire Day aptly put it, “Engagement isn’t enough anymore. You need to be willing, but you also need to be able. And able is the wellbeing piece.”


By acknowledging the reality of this ‘pandemic of tiredness’ and responding with intention, organisations can improve not just employee wellbeing, but also performance, retention, and reputation. It’s time to shift from awareness to action—and create workplaces where people can truly flourish.

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Shannon Barlow • March 24, 2025

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