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Nonprofit Burnout

September 20, 2023
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Warrick Long

Typically, those of us in the nonprofit sector have a deeper purpose and drive for the work that we do. This doesn’t come without cost, and a recent report form McKinsey & Company (READ IT HERE) notes that workers in nonprofit organisations are particularly vulnerable to burnout, and more so amongst the organisations leaders. Also of concern is that the ripple effects of this travels through the organisation and beyond to include families, organisations, and communities. As one manager reported saying, “We hire great people but struggle to hang onto them.”

The report is based on a sample of Australian nonprofit organisations and their leaders. Of concern also is that many self-identified as ‘in orange’ or ‘in red’ zones – indicating they are approaching or experiencing burnout.” Only 11 percent felt they operate in a healthy level of stress. Even more disturbing is that of those who are in the orange or red zones, they “reported having felt like this for extended periods of time – many for months on end.” This leads to numerous detrimental effects for the people concerned.

In unpacking what contributes most to burnout, the respondents self-reported work culture, financial concerns, and lack of control. However, when participating in an interactive ranking exercise, “the highest-ranked factors were quite different.” Instead, “the top stress factors were predominantly physical.” Unpacking this, three insights became evident:

  1. Physical factors were rated higher than mental or environmental stresses. Examples are poor sleep (the biggest factor), lack of exercise, body image, poor life routine, and no time for self-care.
  2. Physical factors have a greater cumulative impact than we realize.
  3. Leaders should take steps to reduce burnout risk, for themselves and their teams.

This last factor is an important one, as the report notes that nonprofit leaders don’t tend to look after their own needs and are poor role models of this. Other research referred to by McKinsey provides some interesting data on the numerical impact of this on productivity, but “in short, people who take care of their own needs are more effective as leaders.”

Providing some suggestions as to how to reduce burnout, the report firstly challenges the tradition that burnout is the responsibility of the individual, and instead the organisation needs to pay more attention to it. Specifically, the report suggests leaders prioritize the following:

  • Role modelling a supportive environment and sustainable models.
  • Building organisational awareness and incentivizing well-being.
  • Making operational changes and championing behavioural norms

In summary, “when leaders ‘walk the walk’ in reducing stress, they can create organisations that are better able to serve the country’s most vulnerable.”

About the author: Dr Warrick Long is an experienced chief financial officer, company secretary and company director, having worked for more than 35 years in the not-for-profit sector. From 2013 to 2024, he was part of the Avondale Business School (ABS) lecturing as a leadership and governance specialist and coordinating the Master of Business Administration and a leadership and governance specialist. Since late 2024 Dr Long has been serving as the Chief Financial and Operations Officer for Avondale University and undertaking some casual lecturing in the ABS. LinkedIn

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