New Study Highlights 3 Things Leaders Must Do Differently In 2026 To Reduce Burnout And Boost Well-Being

This expert opinion by Marcel Schwantes, Inc. contributing editor, executive coach, speaker, and author, was originally published on Inc.com.

HR firm isolved’s second-annual Business Owners Report, based on responses from 2,032 owners, founders, and CEOs in the US, finds that 76 percent say running a business has become more complicated in the past year, a steep climb from just 52 percent the year prior. While it’s easy to blame pressure from profit measures, the real challenge is far more human and requires a human approach.

Eighty-two percent of business owners report that their concerns about employee wellness have increased in the past year. They’re right to worry: 79 percent of employees report experiencing burnout, and burned-out employees are 35 percent more likely to job hunt. Supporting employees isn’t just the right thing to do; it’s essential to building a resilient, committed workforce.

Luckily, many business owners are already leading with empathy. For those looking to follow their lead, isolved’s study makes a strong case for three ways to start: treating workers as people, not positions; pairing purpose with practical tools; and embracing humane leadership.

Treating Employees As People, Not Positions

Business owners feel confident they’re taking the right steps to support employee well-being, with 99 percent planning new investments, most often in financial wellness. This is a vital area to focus on, as 42 percent of employees say salary is a top motivator for job hunting.

But compensation alone reflects only one part of the employee experience. Viewing work strictly as an exchange of labor for pay is outdated. Employees want to feel valued for who they are as whole people, not just the positions they fill. When employers don’t do that, employees will jump ship for companies that do.

So, if business owners are pouring money into wellness, they need finance perks that will drive impact, and that means going beyond financial wellness. Another critical area to prioritize is flexibility. Forty-six percent of workers say the promise of flexible work arrangements (such as hybrid or remote options) would entice them to job hunt, outranking salary. Also, more than a quarter (26 percent) say flexible benefits also serve as a compelling factor for taking a new job.

“By mastering benefits and flexibility, employers tell their workers just how much they care,” said Amy Mosher, Chief People Officer at isolved. “Yet many employees say their employers miss the mark on both. Thirty-nine percent (39 percent) are still waiting for their employers to embrace flexible work and scheduling options, and 72 percent say their benefits experience is stressful. Until business leaders close these gaps, top talent will keep walking out the door.” 

Addressing Burnout Through Purpose And Practical Support

Year after year, burnout undermines company culture, and its impact extends beyond that. It can erode engagement, customer experience, and even cause data breaches when left unchecked. So, why haven’t we rid the modern workforce of this age-old problem? Employees and employers continue to attribute different causes of burnout.

Business owners point to a lack of purpose as the top driver of burnout (24 percent), and they’re right. Employees who feel their work has meaning are more engaged and more likely to stay. But employees also offer clear guidance on what helps prevent burnout: 48 percent want flexible work environments, and 43 percent want clear boundaries around after-hours communication. These are tangible tactics that will help businesses create the conditions in which purpose can take hold.

“Business owners should take note,” said Mosher. “They’re already taking meaningful action to reconnect employees to purpose. But the strongest leaders know that without addressing the everyday realities that employees say fuel burnout, purpose alone won’t stick. It must be paired with practical tools and resources, whether that’s a work arrangement that fits someone’s specific needs or training on time management and setting boundaries. With burnout in check, employees can rediscover the parts of their work that energize them, allowing purpose to come back into focus.”

Championing Humane Leadership, Not Toxicity   

After coaching hundreds of leaders over the past 25 years, one thing has become clear: the most successful companies are led by people who embrace Humane Leadership. isolved’s data reinforces this. Business owners are increasingly choosing to support their employees rather than defaulting to a toxic “efficiency at all costs” mindset.

A striking 95 percent of business owners say they’re now heavily involved in HR and employee experience functions, up from 79 percent last year. Why? Because they genuinely care about the experience their employees have at work.

That’s compelling evidence that businesses are heading in the right direction. And while there will always be new best practices to adopt and gaps to close in the employee-employer relationship, more business leaders are saying: we care about well-being, we see its importance, and we’re committed to improving it. Now, they simply need to deploy the right data and tools to guide their next steps.

Leading with empathy isn’t a tradeoff with efficiency. Instead, it creates loyal, supported, and aligned employees who make better decisions and stay focused on goals. When these employees feel seen and respected, they don’t work harder. They work smarter, and that’s the real efficiency multiplier.