In Aotearoa/New Zealand's evolving labour market, burnout driven by job insecurity has emerged as a critical diversity, equity, and inclusion (DEI) issue requiring urgent attention from employers. Recent research reveals an alarming trend: burnout rates have reached unprecedented levels, with disproportionate impacts across different demographic groups, creating significant equity challenges in workplaces nationwide.
According to Professor Jarrod Haar's wellbeing@work research at Massey University, 57% of New Zealand's workforce now falls within the high burnout risk category as of April 2024—more than double the 25% reported in December 2023 and exceeding the previous peak of 43% during the pandemic (Haar, 2024). This research defines burnout across four dimensions: emotional exhaustion, mental distancing, cognitive impairment, and emotional impairment. The primary driver behind this surge is job insecurity, with those perceiving their jobs as under threat increasing from 22% to 48.4% in just four months.
The impact of this phenomenon is not distributed equally across the workforce. Significant differences exist between ethnic groups, with Pākehā reporting the highest burnout rates (65.1%), followed by Māori (43.3%) and Asian workers (17.6%). Regional disparities are also evident, with Gisborne reporting the highest rates (81.1%) compared to Nelson's 14.3%. These variations highlight how burnout and job insecurity intersect with existing social inequities, making this a critical DEI concern.
Managers must understand this issue for several compelling reasons. First, burnout carries substantial business costs—burnt-out workers are 16.5 times more likely to consider quitting and 28.5 times more likely to engage in counterproductive work behaviors, directly impacting organizational performance and stability. Second, the mental health implications are severe, with those in burnout risk categories experiencing higher rates of anxiety, depression, and insomnia. Third, as DiversityWorks New Zealand (2024) notes, "The intersection of mental health, trauma, and workplace inclusion is gaining critical attention, particularly for individuals from marginalised groups who face unique challenges."
In the current economic climate, where policy design is "increasing the wealth gap, which will have a downstream impact on equity and social cohesion" (DiversityWorks NZ, 2024), managers have a responsibility to implement structures that mitigate these impacts. This includes making job restructures clearer and faster with emphasis on human-centered approaches, communicating transparently about organizational changes, and developing supportive DEI strategies that address job insecurity and emotional well-being.
For Aotearoa/New Zealand to build truly inclusive workplaces, managers must recognize that burnout and job insecurity represent not just productivity challenges but fundamental equity issues. By addressing these concerns proactively, organizations can create environments where all employees, regardless of background or circumstance, can thrive professionally without sacrificing their well-being.
YJ Consulting specialises in developing comprehensive DEI policies and implementation strategies that address burnout and job insecurity while fostering inclusive workplace cultures. Our experienced consultants work closely with organisations to create tailored solutions that incorporate best practices in mental health support, transparent communication protocols, and equitable restructuring processes.
We help businesses establish measurable DEI metrics, implement supportive management frameworks, and develop resilience-building programs that consider the unique challenges faced by different demographic groups.
Our human-centred approach ensures that DEI initiatives are not just policy documents but transformative tools that create lasting positive change in workplace culture and employee well-being. Get in touch today to find out how we can strengthen your workforce.
References
Haar, J. (2024). Job insecurity drives Aotearoa New Zealand workforce to highest burnout risk. Massey University. https://www.massey.ac.nz/about/news/job-insecurity-drives-aotearoa-new-zealand-workforce-to-highest-burnout-risk/
DiversityWorks New Zealand. (2024). State of workplace inclusion in Aotearoa in 2024. https://diversityworksnz.org.nz/news-resources/news/state-of-workplace-inclusion-in-aotearoa-in-2024/
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