The Hidden Costs of Burnout: Why Leaders Should Prioritise Work-Life Balance
John Elliott • Jun 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.


Executive introducing new leader as part of executive onboarding process

Executive Onboarding in Food & Beverage: The Blueprint for Success

By John Elliott • 09 Apr, 2024
The arrival of a new executive heralds a period of opportunity, transformation, and, inevitably, challenge. The process of integrating this new leader – onboarding – is a critical, often under-emphasised phase that can significantly influence the trajectory of both the individual's and the company's future. So why do so many organisations fail to get executive onboarding right? The High Stakes of Executive Onboarding The adage "well begun is half done" resonates profoundly in executive onboarding. Harvard Business Review reveals a startling statistic: as many as 40-50% of new executives fail within the first 18 months of their appointment. This failure rate is not just a personal setback for the executives; it represents a substantial cost to the company – often up to five times the executive's salary. The reasons for failure? Poor cultural fit, unclear expectations, and inadequate onboarding support top the list. But what makes the consumer goods industry particularly challenging for new executives? It's a dynamic sector where consumer preferences shift rapidly, supply chains are complex, and competition is intense. Here, more than anywhere else, an executive's ability to adapt and lead effectively from the outset is paramount. The Multifaceted Challenges in Onboarding The failure of many organisations in the consumer goods industry to effectively onboard new executives is multifaceted: 1. Tailored Onboarding Versus Standard Processes The provided text emphasises the necessity of a tailored onboarding process for executives, distinct from standard employee onboarding. This is particularly relevant in the consumer goods industry, where executives must navigate unique market dynamics, consumer trends, and complex supply chains in Australia. Tailoring the onboarding process to address these specific industry challenges ensures that executives can hit the ground running with a clear understanding of the landscape they will operate in. 2. The Role of a Dedicated Onboarding Team The concept of a dedicated project team for executive onboarding, as implemented by Palo Alto Networks, could be highly effective in the consumer goods sector. Such a team could focus on providing industry-specific insights, facilitating connections with key stakeholders, and ensuring that new executives understand the nuances of the Australian consumer market. This team would act as a bridge between the executive and the unique aspects of the Australian consumer goods landscape. 3. Engagement During the Notice Period In the consumer goods industry, where market trends and consumer preferences can shift rapidly, keeping executives engaged during their notice period is crucial. This period can be used to familiarise them with current market analyses, consumer behaviour trends, and ongoing projects. This proactive approach ensures that the executive is well-informed and ready to contribute from day one. 4. Cultural Orientation and Familiarity Building a strong cultural connection is vital in any industry but takes on added importance in consumer goods, which often relies on understanding and adapting to cultural nuances to succeed. Regular touchpoints that orient the new executive to the company's culture, values, and consumer-centric approach can help in crafting strategies that resonate with the Australian market. 5. Collaboration Among Various Teams The need for collaboration between HR, Reward, Performance, and Talent teams is pertinent in the consumer goods sector. This collaboration can ensure a unified approach to addressing the specific challenges and opportunities an executive might face in this dynamic industry. For instance, understanding the compensation frameworks and performance indicators specific to different departments within a consumer goods company can aid an executive in making more informed decisions. 6. 'Just-in-Time' Resources The idea of providing ‘just-in-time’ resources is particularly beneficial for executives in the fast-moving consumer goods sector. Given the rapid pace of change in consumer preferences and market trends, having access to real-time data and concise, relevant information can be invaluable. This approach allows executives to stay agile and make decisions based on the latest market insights. 7. Understanding of Performance Cycles In the consumer goods industry, understanding the timing and nuances of performance cycles is critical. This is especially true in a market like Australia, where seasonal trends and events can significantly impact consumer behaviour. The onboarding process should include education on these cycles, preparing executives to plan and execute strategies effectively in sync with these fluctuations. The Role of the Board in Facilitating Successful Onboarding The board of directors plays a pivotal role in the onboarding process. Their actions, or lack thereof, can set the tone for the new executive’s tenure. What should they be doing? Pre-Onboarding Engagement: The process starts before the executive's first day. Boards must ensure clear communication about the company's vision, challenges, and expectations. This early dialogue helps align the executive’s mindset with the company's strategic goals. Structured Onboarding Plan: Developing a comprehensive, customised onboarding plan is crucial. This should cover not just the operational aspects of the role but also the cultural and interpersonal dynamics of the organisation. Mentorship and Networking Support: Assigning a mentor from the board or senior leadership can accelerate the integration process. Additionally, facilitating introductions and networking opportunities within and outside the company is invaluable. Regular Check-Ins and Feedback: Ongoing support doesn’t end after the first week or month. Regular check-ins to provide and receive feedback ensure any issues are addressed promptly. Performance Metrics: Clear, early-established metrics for success help the new executive understand how their performance will be measured. Enhancing Executive Performance through Effective Onboarding The correlation between effective onboarding and enhanced executive performance is well-established. A study by McKinsey found that executives who had a successful onboarding experience were 1.9 times more likely to exceed performance expectations. Furthermore, these executives reported feeling more integrated into the company culture and more effective in their roles earlier than their peers who experienced less structured onboarding. Effective onboarding leads to better decision-making, faster strategy implementation, and a more cohesive leadership team. It builds a foundation of trust and understanding that is crucial in the high-stake, rapidly evolving consumer goods market. Onboarding as a Strategic Imperative Effective executive onboarding goes beyond mere orientation – it is a strategic process that lays the groundwork for long-term success. As we've seen in the consumer goods industry in Australia, a well-planned and executed onboarding process can be the difference between a flourishing leadership tenure and a costly misstep. In an era where the cost of failure is high and the speed of change is relentless, consumer goods companies must view executive onboarding not as a perfunctory checklist but as a fundamental building block of sustainable leadership and organisational success. Remember, your new executive's journey is a reflection of your organisation's commitment to leadership excellence. Invest in their onboarding, and you're investing in the future of your company.
two men are sitting at a table with a laptop and talking to each other .

Talent Acquisition: Internal Strategies vs. Executive Search Partnerships in Australia's Beverage Industry

By John Elliott • 18 Mar, 2024
Explore the pivotal choice between internal talent acquisition and hiring via executive search firms in the food and beverage industry for optimal growth.
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