Employers are underestimating how burned out their workers are and it could be an expensive mistake

It’s time for employers to wake up and smell the burnout. 

Responsibilities both in and out of the office are piling up for today’s workers, especially for the “sandwich generation,” defined as an adult population consisting largely of Millenials and Gen Xers who are taking care of both young children and aging parents at the same time. 

While employers recognize that burnout is a real issue, they underestimate how prevalent it is in their own workplaces. Approximately 84% of employers acknowledge that burnout plays a moderate to high role in employee retention, but they believe only 45% of their employees are at risk of burnout or are fully burnt out, according to a new report from Care.com. In reality, a much larger 69% of employees report moderate to high levels of burnout risk. The online marketplace surveyed 600 C-suite and HR executives for their “employer” results, as well as 1,000 workers (all earning wages and eligible for benefits) for the “employee” outcomes. 

One possible explanation for the perception gap is a lack of understanding which issues are causing burnout, such as caregiving. “The mental load [of caregiving] permeates the workplace; it goes just beyond the four walls of your home, especially in a more interconnected world,” Wes Burke, chief human resources officer at Care.com, tells Fortune. “[It] has an impact on attendance, productivity, and impacts overall quality of life for both the employee, [while also having] a lot of impact for the employer.” 

Though employers may struggle to recognize burnout in their own companies, they certainly understand the risk it poses for their bottom line. The majority of employers (80%) predict profitability would increase by 25% or more if no employees were at risk of burning out. “The cost of losing somebody [and finding] their replacement can be staggering, depending on the complexity of the role,” Burke says. 

A major contributor to the burnout that many workers feel is related to increasing return-to-office mandates, according to the same report. Initial analysis in the technology and finance industries shows increased turnover rates once companies implement return-to-office initiatives. 

Burke argues that this is partially due to misguided directives from leaders to go back to a pre-pandemic environment. “Five years is a long time, and people's lives change dramatically,” he says. “Especially as you think about [how] kids are either older now, or you started a family, or you got a dog, and we're all kind of out of practice.” He believes that all facets of an employee’s life should be incorporated into decisions coming from the top, not just their role in the company. 

“I'm hoping that more and more employers see the importance of what it means to really take care of the employee in this modern day and age,” he says. 

This story was originally featured on Fortune.com