The Hidden Costs of Burnout: Why Leaders Should Prioritise Work-Life Balance
Debbie Morrison • June 27, 2023

Post-pandemic life has provided little respite for organisations, in fact macro-economic pressures have exacerbated an already demanding business landscape. Executives often find themselves caught in a relentless cycle of work, constantly pushing themselves to meet targets, drive growth, and deliver results. While dedication and commitment are essential for success, the cost of neglecting work-life balance can be detrimental not only to the well-being of executives but also to the overall productivity and profitability of their organisations. This article explores the hidden costs of burnout and why organisations should prioritise work-life balance for executives, presenting compelling evidence that demonstrates how a healthier work-life balance can actually increase productivity and profitability.


The food manufacturing industry poses unique challenges when it comes to providing employees with greater flexibility and work-life balance, particularly in environments where workers may be engaged in shift work on a production line. While the benefits of work-life balance apply universally, implementing flexible policies and practices in this industry requires careful consideration of operational requirements, safety regulations, and the specific needs of employees.


Flexibility vs. Freedom to Balance Work/Life Priorities

One of the key aspects of work-life balance is the ability to find a harmonious blend between professional responsibilities and personal life. Many organisations have embraced flexible work arrangements to address this issue, allowing employees to have more control over their schedules and the location of their work. While flexibility is often seen as the solution, it's important to distinguish it from freedom.


Flexibility refers to the ability to adjust working hours or work remotely occasionally, while freedom implies having autonomy and choice over how work is done. While flexibility is a step in the right direction, it often falls short of addressing the deeper issue of work-life balance. True work-life balance requires an environment where executives have the freedom to make decisions about their priorities, both in and outside of work, without feeling guilty or facing negative consequences.


When employees have the freedom to balance their work and personal priorities, they are more likely to experience higher job satisfaction, lower stress levels, and increased loyalty to their organisation. This autonomy fosters a sense of ownership and empowerment, leading to higher engagement and productivity. In fact, a study conducted by the
American Psychological Association found that employees with greater autonomy reported higher job satisfaction and were less likely to experience burnout. 


The Importance of Choice and Autonomy

Choice and autonomy are fundamental psychological needs that have a profound impact on employee well-being and organisational success. When individuals feel that they have control over their work and can make decisions aligned with their values and preferences, they are more likely to be motivated and committed.


Moreover, granting executives the autonomy to determine their work-life balance can lead to more engaged and loyal employees. According to a study conducted by the
University of Warwick, happy employees are 12% more productive than their unhappy counterparts. By providing the choice to balance work and personal commitments, organisations can create a culture of trust and mutual respect, resulting in higher levels of employee engagement and retention.


Rethinking Productivity Metrics

Traditional productivity metrics often focus on hours worked, output quantity, or meeting tight deadlines. While these metrics may provide a superficial understanding of productivity, this narrow perspective fails to account for the quality of work, creativity, and innovation that are vital for long-term success. Nor does it capture the true value that employees bring to their organisations. Executives are not machines, and their value should not be reduced to the number of hours they spend in the office. Rethinking productivity requires shifting the focus from quantity to quality, from input to output, and from presenteeism to effectiveness.


A more holistic approach to measuring productivity, considering factors such as employee well-being, work satisfaction, and overall contribution to the organisation's mission offers a better window into true performance. Instead of measuring the number of hours an employee spends at their desk, leaders can focus on outcomes achieved, impact made, and value created. Emphasising results rather than mere effort encourages employees to work smarter, not harder and allows them to prioritise tasks that truly contribute to organisational goals. 


Redefining productivity metrics sends a clear message that work-life balance is valued and that employees' well-being and contribution go beyond mere time spent at work. By recognising the importance of work-life balance and encouraging executives to take time for self-care, organisations can create an organisational culture that fosters productivity, innovation, and long-term success.


Shifting the Paradigm: The Benefits of Prioritising Work-Life Balance

Now that we've explored the hidden costs of burnout and the importance of work-life balance for executives, let's delve into the tangible benefits that organisations can reap by prioritising this crucial aspect.

  • Enhanced Productivity: Numerous studies have shown that overworked and burnt-out employees are more prone to errors, lack focus, and experience reduced cognitive abilities. In contrast, well-rested and balanced executives bring fresh perspectives, increased creativity, and improved decision-making skills to the table. Prioritising work-life balance enables executives to recharge and show up at work with renewed energy and vigour, ultimately driving higher levels of productivity.


  • Improved Employee Well-being: When executives are constantly juggling work demands and personal responsibilities, their mental and physical health suffer. Chronic stress and burnout not only impact individuals physically and emotionally but also have ripple effects on their performance and well-being. Prioritising work-life balance allows executives to prioritise self-care, reducing stress levels and promoting overall well-being. This, in turn, leads to increased job satisfaction, lower rates of absenteeism, and improved overall health.


  • Talent Attraction and Retention: In today's competitive job market, attracting and retaining high-performing executive talent is a constant challenge for organisations. Candidates are increasingly prioritising work-life balance and a supportive culture when considering potential employers. By prioritising work-life balance for executives, organisations can position themselves as employers of choice, attracting high-performing individuals who value healthy work-life integration. Furthermore, when executives experience a healthy work-life balance, they are more likely to stay with the organisation long-term, reducing turnover costs and ensuring continuity.


  • Enhanced Creativity and Innovation: Overworking and burnout stifle creativity and hinder innovation. When executives are constantly stretched thin and lacking time for reflection and rejuvenation, they are less likely to come up with innovative ideas or think outside the box. On the other hand, a balanced work-life allow executives the mental space and freedom to explore new possibilities, encouraging creativity and fostering a culture of innovation within the organisation.


  • Positive Organisational Culture: Prioritising work-life balance sends a powerful message to the entire organisation about the values and priorities of the company. When executives are encouraged to achieve a healthy work-life balance, it sets a precedent for the rest of the employees, creating a culture that values well-being, personal growth, and work-life integration. This positive culture, in turn, leads to higher employee morale, stronger teamwork, and increased organisational loyalty.


The hidden costs of burnout among executives can have far-reaching implications for both individuals and organisations. By prioritising work-life balance, organisations can not only mitigate these costs but also unlock numerous benefits that contribute to increased productivity and profitability. Flexibility alone is not enough; true work-life balance requires giving executives the autonomy and freedom to make choices that align with their personal priorities. 


By rethinking productivity measurement, organisations can recognize the importance of quality over quantity and foster a culture that values well-being and innovation. Embracing work-life balance for executives is an investment that pays off from day one. The very best executive talents are driven by purpose, they want to make a lasting impact but it’s essential they can do so sustainably. It's time for organisations to prioritise work-life balance and reap the rewards of a healthier, more productive, and profitable future.

At ELR Executive we have over 20 years of experience helping FMCG and Food and Beverage organisations identify and attract executive talent who create high-performing cultures that positively shape business futures. If you'd like to learn more about how we can help you help build purpose into your candidate screening and interview process, 
speak to us today.


A Farmer walking through a barn, using a laptop with cows eating hay nearby.
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By John Elliott April 6, 2025
Comfort has become the silent killer of executive performance. In an era defined by disruption, volatility, and shrinking margins, too many leadership teams are still optimising for control, not adaptability. They talk about transformation, but build cultures of stability. They prize clarity, yet avoid the ambiguity where real growth lives. The problem isn’t capability. It’s discomfort intolerance. The solution? Start hiring and promoting leaders who deliberately seek discomfort—not just those who can tolerate it when it arrives. Growth Mindset Isn’t Enough Anymore You’ve heard the term "growth mindset" countless times. It’s become a leadership cliché. But it’s not wrong—it’s just incomplete. A growth mindset says, "I believe I can learn." Discomfort-driven leadership says, "I will actively seek out the hardest experiences because that’s where I’ll grow fastest." The distinction matters. Leaders with a growth mindset tend to thrive when external change forces them to adapt. But leaders who embrace discomfort create those conditions on purpose. They invite hard feedback. They question their own success. They take action before external pressure arrives. According to a 2023 study by Deloitte, only 22% of executives say their leadership team is “very prepared” for the future—despite record spending on transformation programmes (Deloitte Human Capital Trends, 2023). That gap exists because most teams are trained to manage change , not lead into uncertainty . Ask yourself: Are you hiring leaders who wait for disruption—or ones who walk towards it? Discomfort Is the Driver of Strategic Advantage Companies don’t fall behind because they make bad decisions. They fall behind because their leaders avoid the hard ones. In high-stakes industries like FMCG, where regulatory pressure, margin compression, and shifting consumer loyalty are accelerating, comfort is dangerous. It fosters: Short-termism Decision paralysis Lack of innovation Cultural stagnation McKinsey found that organisations with a strong tolerance for ambiguity—where leaders frequently challenge their own assumptions—are 2.4x more likely to be top-quartile performers on total shareholder returns (McKinsey & Company, 2022). In other words: embracing discomfort isn’t a trait—it’s a multiplier. Let’s take an example. When COVID hit, Lion Brewery—one of Australia's largest beer producers—was forced to rethink logistics and supply overnight. But smaller craft breweries who had already diversified through direct-to-consumer models adapted faster. Why? Their founders had already been operating in discomfort. They were trained for volatility. What Discomfort-Driven Leaders Actually Do Differently You can spot these leaders. They don’t always look like the most confident in the room—but they’re always the most effective in a storm. They: Seek feedback from critics, not fans Prioritise strategy over popularity Tackle underperformance head-on—even if it means conflict Ask hard questions that slow down groupthink Regularly step out of their functional lane to challenge assumptions They also act . Not rashly—but decisively. In a recent Australian Institute of Company Directors (AICD) survey, directors ranked “resilience and adaptability” as the #1 trait they now seek in new appointments—outranking experience for the first time (AICD, 2024). That’s not a trend. It’s a shift in what leadership now demands. The Real Cost of Hiring for Comfort Not hiring discomfort-driven leaders isn’t just a missed opportunity—it’s a risk. Here’s what it’s costing you: Strategic Drift: Without challenge, strategies become stale. Your team optimises yesterday’s model. Talent Exodus: Top performers disengage when they see leadership avoiding tough calls. Innovation Bottlenecks: Safe cultures don’t take smart risks. New ideas die in committee. Crisis Fragility: Leaders who haven’t been tested won’t perform when stakes are high. Bain & Company found that companies with decision-making cultures built around speed and tension—not consensus—were 95% more likely to deliver sustained value creation (Bain, 2023). Ask yourself: Is your executive team equipped for bold calls—or just built for calm waters? How to Identify Discomfort-Driven Leaders in Interviews Everyone talks a good game in interviews. But few have the scar tissue that comes from operating in real discomfort. The trick is to go beyond surface-level success stories. Here’s how: Ask Better Questions: “What’s the most uncomfortable decision you’ve made in the last 12 months—and how did it play out?” “Tell me about a time you got strong pushback from your team. What did you do?” “What’s a belief you held strongly that you’ve now abandoned?” “When have you chosen a path that was harder in the short term, but better long term?” Look for: Specificity (vagueness = theory, not lived experience) Self-awareness without self-promotion Signs of humility: they talk about learning, not just winning Evidence of risk-taking: role changes, cross-functional moves, or failed experiments Pro tip: Ask referees how the leader handles ambiguity. Not just performance. This will tell you more about how they lead under pressure. What to Do Now: Practical Actions for Executive Teams If you want to build a leadership culture of discomfort, you have to engineer it. It won’t happen organically in high-performing, risk-averse teams. Here’s how to start: Audit Your Current Team: When was the last time each leader took on something that scared them? Rethink Talent Criteria: Shift from stability and experience to adaptability and action under pressure. Redesign Development: Stretch your execs with ambiguous, cross-functional challenges—not just workshops. Model It at the Top: If the CEO isn’t embracing discomfort, no one else will. You don’t need to create chaos. You just need to stop insulating your leaders from discomfort—and start asking them to seek it. The Discomfort Dividend You can’t build a future-ready business with comfort-first leadership. The next generation of strategic advantage will come not from better processes or faster tech—but from bolder human decisions. From leaders who are willing to feel awkward, wrong, or out of their depth—because they know that’s where the value is. So next time you're hiring a leader, ask yourself: Are they looking for clarity—or ready to lead without it? Do they want the role—or are they ready for the risk that comes with it? Are they seeking comfort—or prepared to create discomfort for progress? Because in 2025, comfort is a luxury your business can’t afford .