The last few years have put unprecedented levels of stress on employees across the country. With Covid-19 changing work patterns, the global economic crisis causing mass uncertainty, and a seemingly never-ending cost of living crisis, people are certainly feeling the strain.
In a 2021 report, international job advertiser Indeed found that over 50% of Americans reported feeling burnout, an increase of around 7% from the previous year. However, perhaps the most unsurprising finding was that 67% of respondents believed that the pandemic was one of the largest contributors to burnout.
The World Health Organization (WHO) describes burnout as an “occupational phenomenon” resulting from stress that has not been successfully managed in the workplace. It shouldn’t be applied to describe experiences in other areas of life, nor can it be treated as a medical condition. For the purpose of this article, we will be looking at employee burnout specifically in the legal and public accounting sectors.
Jump to: Burnout amongst accounting and legal professionals | Recognizing the signs of burnout | Prioritizing mental health in the Workplace | Employee benefits
Burnout amongst accounting and legal professionals
A study by FloQast identified burnout as the reason many CPAs are leaving public accounting.
The 2022 study adapted the MBI (Maslach Burnout Inventory) measure to rate participants on a 100-point scale and found that a staggering 99% of accountants suffer from burnout. Of those, 24% reported medium-high levels and 57% of participants agreed that the yearly and monthly close desperately needs modernization.
Another sector with problematic levels of burnout is legal. A 2023 report on lawyer well-being in Massachusetts by Norc found that 77% of lawyers reported burnout from their work. Almost half considered leaving their legal employer, and 40% considered leaving the legal profession due to burnout or stress over the last three years.
What is evident in both of these recent studies is the impact that employee burnout could have on the public accounting and legal professions. Both sectors are notorious for long hours; according to CPA Practice Advisor, at the height of tax season, accountants can work between 50 to 80 hours a week, a stark comparison to the traditional 40-hour week accountants working in industry can experience all year round. And in 2022, it was reported that more than 300,000 accountants and auditors had left their jobs in the last two years. While this almost certainly won’t be down to burnout alone, long hours can see many CPAs leaving the industry and opting to move into finance or technology sectors instead.
The 2018 Legal Trends Report found that 77% of lawyers work beyond regular business hours to catch up on work that didn’t get completed during the day. Norc’s lawyer well-being report also found higher rates of burnout amongst lawyers who both worked an average of 45 hours or more and billed an average of 36 hours or more a week. Other respondents earned less than $150,000 annually and did not have the flexibility to work from home.
In addition to the toll that burnout takes on an individual’s mental health and general well-being, Thomson Reuters cites it as an increased risk of employee turnover in the legal sector, and the National Association for Law Placement found that just one associate loss can cost a firm anywhere between $200-$500k.
Recognizing the signs of burnout
According to WHO, burnout is characterized by 3 dimensions:
- Feelings of energy depletion or exhaustion
- Increased mental distance or negativism/cynicism from one’s job
- Reduced professional efficacy.
But what does this look like in your firm, and how can you recognize the everyday signs?
Exhaustion. A persistent feeling of mental and physical fatigue, exhaustion is often the most obvious sign of burnout. As well as feeling tired, you may also have difficulty sleeping or switching off. This could feel more prevalent if you already work long hours or to tight deadlines.
Increased mental distance. If you’re lacking motivation, feel disengaged, or have a loss of interest in your work, there’s a good chance you’re experiencing increased mental distance or negativism/cynicism from your current position.
Reduced professional efficacy. This can be experienced if you don’t believe you are successful or good at your work, a feeling which could intensify in industries with performance-driven targets.
Repeatedly making mistakes. A common warning sign of burnout is an increase in making mistakes, whether you recognize these errors or not. FloQast’s study cited that 85% of accountants had to reopen their books at least once in the previous year to fix errors and almost half needed to do this in three or more months of the year.
Addiction and substance use problems. Studies have also found a link between lawyer burnout and substance abuse. Drinking after a client meeting or a long day can be more common in the legal profession, but daily alcohol use over a long period can lead to addiction. Ohio Bar reports that between 21 – 36% of licensed attorneys qualify as problem drinkers, with attorneys being 3 to 5 times more likely to develop an alcohol use disorder than the general population.
Prioritizing mental health in the workplace
Reports have shown that prioritizing mental health in the workplace can make employees feel more valued and engaged in their business.
APA’s 2022 work and well-being survey found that 81% of workers agree that employers supporting mental health will be an important consideration for them when looking for future work. The most popular mental health support was classed as flexible working hours (41%), a workplace culture that respects time off (34%), the ability to work remotely (33%), and a four-day workweek (31%).
Norc’s lawyer well-being study also found that lawyers with supportive work environments had lower rates of burnout. For example, lawyers with scheduled flexibility versus those without were less likely to report burnout by 15%. Whereas the majority of public accountants recently surveyed by the ACCA have said that they want “more help from their organizations to manage their mental health”, with 88% saying they want a better work-life balance and 87% would like to work at least one day remotely in the future.
It’s evident that professionals are looking for more flexibility in their roles, and this could take form in a multitude of ways. For those in competitive industries such as legal, an additional benefit could make a big difference when it comes to talent retention and attraction.
Employee benefits
If you are experiencing symptoms of burnout and your current place of work is unwilling to adapt their culture, there are certain green flags you could be looking out for in your job hunt.
These include finding out what benefits are on offer to combat mental health struggles, such as additional PTO during off seasons, healthcare contributions, and regular well-being allowances.
At Distinct, we represent CPA firms that cap their weekly hours for employees to a maximum of 50 during busy season and 30 during quieter periods. As well as mandatory non-working weekends and
Fridays off. We also work with medium-sized and boutique law firms that promote more attainable billable targets and we have seen a vast increase in the volume of hybrid and remote flexibility across both sectors.
If you’re working in the legal or public accounting sectors, our headhunting specialists offer a free candidate-first service. Get in touch with our experts today to discuss the market and discover which firms are offering the best perks to encourage a healthy work-life balance.
Sources: Indeed | World Health Organization | FloQast | Norc | CPA Practice Advisor | The Wall Street Journal | Clio | Thomas Reuters | National Library of Medicine | Ohio Bar | apa.org | ACCA
