Workplace Stress: When Burnout Becomes an Organizational Issue

Workplace stress has become one of those topics that organizations can no longer afford to treat as an individual issue. While stress has always existed in professional environments, the intensity and persistence of current pressures appear to be reaching new levels.

I recently reviewed an article in the Journal of Accountancy centering on findings from the 2026 Workforce Mental Health Report, and the observations were striking – not only because of the magnitude of employee burnout, but because of the implications for leadership, culture, and organizational performance.

The report describes today’s environment as a “collision of stressors.” Employees are balancing economic pressures, regulatory demands, political and global uncertainty, rapidly changing technology, and the growing presence of artificial intelligence (AI) in the workplace. Expectations continue to rise while many employees perceive that available support systems are not keeping pace.

One statistic from the report was particularly notable: 84 percent of employees reported that burnout affects their productivity, to some degree. Burnout is no longer simply a personal well-being concern; it has become an operational concern.

When employees are exhausted, distracted, or emotionally depleted, organizations often experience measurable effects, including reduced productivity, lower quality, weaker customer service, increased absenteeism, and employee turnover. These outcomes ultimately affect financial performance, culture, and organizational resilience.

The report also highlighted that 72 percent of employees felt pressure to continue working despite mental health challenges. Many employees do not feel comfortable stepping away, slowing down, or asking for help even when they recognize they are struggling.

More concerning was that over half of respondents reported crying due to work-related stress within the prior month, and many acknowledged unhealthy coping behaviors, including increased reliance on alcohol or other substances while working. These findings suggest that workplace stress may be reaching levels that deserve far greater attention from employers.

AI emerged as another major contributor to employee anxiety.

While AI offers significant opportunities for productivity, innovation, and operational efficiency, employees also appear concerned about what these technologies mean for their future roles. Two-thirds of workers indicated that AI has increased productivity expectations. Employees increasingly feel pressure to work faster, produce more, and continuously adapt to evolving tools and workflows.

At the same time, concerns about workforce disruption remain high. Nearly 70 percent of respondents believed AI could contribute to layoffs within their organizations over the next three years, and almost half expressed personal concern about losing their own position – or seeing employment impacts within their household. The recent reaction of college students at their commencements when renowned speakers mention the opportunities AI offers demonstrates the concerns.

Leadership Challenge

These findings highlight an important leadership challenge.

Organizations cannot simply introduce new technology and assume that employees will automatically feel comfortable. Communication matters. Employees benefit from understanding how technology will be used, what responsibilities may change, and what opportunities exist for retraining and professional growth. Transparency and honesty may reduce uncertainty and improve engagement during periods of change.

The report also explored the emotional effect of broader societal conditions. Approximately 70 percent of respondents indicated that today’s political climate negatively affects mental health in the workplace. Concerns related to war, terrorism, economic instability, and increasingly divisive public discourse appear to be introducing additional stress for employees.

This places managers in increasingly difficult positions. Leaders are often expected to maintain performance expectations while simultaneously supporting employees who may be anxious, distracted, or emotionally fatigued.

The report suggests that organizations provide guidance to managers on acknowledging difficult situations without becoming politically aligned or contributing to workplace division. Employees do not necessarily expect leaders to solve external problems, but they do value empathy, professionalism, and psychological safety.

Managers themselves are not immune.

According to the report, two out of five senior managers reported receiving a new mental health diagnosis during the previous year. Managers frequently carry competing demands, including operational pressures, staffing shortages, difficult conversations, organizational change, and particularly in healthcare, ongoing regulatory implementation, while continuing to support their teams.

Managers often serve as the emotional bridge between executive leadership and frontline employees. If managers themselves are overwhelmed, their ability to support teams becomes more difficult. The bridge will break, and emotional exhaustion can spread throughout departments and influence morale, engagement, and culture.

Organizations may therefore benefit from investing in manager wellbeing just as intentionally as they invest in frontline staff.

Mental Health Benefits

The report also emphasizes an important lesson: offering mental health benefits alone may not be sufficient.

Many organizations already provide employee assistance programs, counseling services, or mental health days. Yet employees may hesitate to access those resources if they fear judgment or negative career consequences. Others may feel unable to step away because of workload or productivity expectations.

Half of surveyed employees indicated they avoid using mental health days because of concerns about perception. Only about one-third strongly agreed that their employer genuinely values employee mental health.

This observation speaks directly to organizational culture.

Policies and benefits are important, but culture determines whether employees feel psychologically safe enough to use them. If employees believe that accessing support will negatively affect their reputation, they may delay seeking help until challenges become more severe.

Next Steps for Employers

So, what can employers do?

The report recommends several practical approaches:

  • Normalize conversations about mental health support;
  • Communicate openly during periods of uncertainty and organizational change;
  • Train managers to recognize signs of burnout and emotional distress; and
  • Encourage healthy boundaries and opportunities for employees to recharge.

One additional thought: perhaps organizations should avoid labeling time off differently. Paid time off may already provide flexibility without requiring employees to categorize personal needs.

Workplace stress is unlikely to disappear in the near future. If anything, technological change, economic pressures, and societal expectations may continue to intensify.

Organizations that proactively support employee well-being may be better positioned to create healthier cultures, stronger teams, and more sustainable performance.

Ultimately, it is not enough simply to offer support.

Employees must also feel safe using it.

Sources: 

Bryan Strickland. “Workplace stress reaching a breaking point? How employers can respond.” May 4, 2026, AICPA Journal of Accountancy.  Online content accessed 5/18/26. https://www.journalofaccountancy.com/news/2026/may/workplace-stress-reaching-a-breaking-point-how-employers-can-respond/

Bryan Strickland. “AI and governance issues: 3 keys to bridging a costly gap.” April 23, 2026, AICPA Journal of Accountancy. Online content accessed 5/18/26.  https://www.journalofaccountancy.com/news/2026/apr/ai-and-governance-issues-3-keys-to-bridging-a-costly-gap/

Modern Health. Workforce Mental Health Report: The 2026 Workforce Faces Colliding Stressors. April 2026. Accessed May 18, 2026. https://explore.modernhealth.com/resources/col/expert-resources/workforce-mental-health-report-april-2026

EDITOR’S NOTE: This article was prepared with the assistance of ChatGPT. It was then edited by a human being.

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Rose T. Dunn, MBA, RHIA, CPA, FACHE, FHFMA, CHPS, AHIMA-approved ICD-10-CM/PCS Trainer

Rose T. Dunn, MBA, RHIA, CPA, FACHE, FHFMA, CHPS, is a past president of the American Health Information Management Association (AHIMA) and recipient of AHIMA’s distinguished member and legacy awards. She is chief operating officer of First Class Solutions, Inc., a healthcare consulting firm based in St. Louis, Mo. First Class Solutions, Inc. assists healthcare organizations with operational challenges in HIM, physician office documentation and coding, and other revenue cycle functions.

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