Spring 2025

Burnout has an incredibly negative impact on job performance. If not addressed, burnout can lead to individuals leaving the profession entirely. If there are increased reductions in staff, the corresponding increase in the workload for the remaining employees will lead to even greater levels of employee stress. The ratcheting up of stress may cause others to depart and can result in a perpetual cycle of burnout/turnover within the organization. One important factor in reducing employee burnout is the presence of an ethical leader.¹ Research has demonstrated that having a leader who acts in what is considered to be an ethical manner can reduce burnout levels within their employees and results in increased task performance.²

But what is an ethical leader, and how can they affect employee burnout? Ethical leadership has been defined as “The demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement, and decision-making.”³ In other words, a leader both walks the walk and talks the talk that exemplifies ethical behavior. Their words and actions demonstrate to all employees the appropriate behavior within an organization. In a perfect world, this ethical behavior will filter down and become the standard behavior for all. The following is a list of behaviors practiced by ethical leaders that can reduce employee burnout.

Reward and punish behavior appropriately – Ethical leaders are consistent in their treatment of employees. They do not allow inappropriate behavior to go unpunished, nor do they fail to reward employees who act in an exceptional manner. Both actions are equally important. Rewards are incentivizing; however, allowing improper behavior to continue can be demoralizing.

Provide clarity about standards and expectations – If a company appears to have a variety of standards, it will be difficult for employees to understand what is expected. Providing exact guidelines can help avoid inappropriate behavior. Clearly defining employee responsibilities will prevent improvising and create a more stable work environment. Improving clarity for employees can remove unnecessary confusion, resulting in greater efficiency and reducing overall workloads.

Transparency – Uncertainty about the future can increase employee anxiety, potentially sending individuals into a doom spiral of apprehension. For an employee already managing stress, uncertainty can act as a multiplier, exponentially increasing their burnout. Ethical leaders maintain transparency about future plans and challenges, which can help employees manage their concerns and focus on constructive solutions rather than their fears. Clear communication about the future can alleviate feelings of helplessness and uncertainty.

Involving employees in decision-making – Tangentially related to transparency, this step can address employees’ fears about the future. While not every decision is appropriate for employee engagement, including employees in the conversation will increase their feelings of empowerment and counteract feelings of depersonalization. Simple steps such as asking for feedback can go a long way to help employees feel that their voices are being heard and that they have a significant level of empowerment.

Fair treatment – During periods of increased workloads, such as tax season or year-end reporting, an increase in feelings of burnout can be expected. There are few options available to an ethical leader to resolve this issue, but one way they can mitigate the effect is to ensure employees are treated fairly and equally at these times. When the workload is shared equitably, employees are less likely to feel isolated and overwhelmed.

Demonstrate care for employees – Caring for your employees is an excellent way to build rapport and increase trust. Employees who feel that there is a genuine concern for their well-being will be able to endure far more than other employees. Individuals who feel they are being led by someone who cares for their well-being will be vastly more motivated to go the extra mile than employees who are simply ordered to do so.

Burnout in the accounting profession is a serious issue. In 2022, FloQast partnered with the University of Georgia’s Consumer Analytics program and conducted a survey that examined burnout rates within the accounting profession.⁴ The survey results revealed that 99% of accountants suffered from burnout. Organizations must take proactive measures to address its impact, managers can play a significant role. It has been shown that managers who act ethically are more effective at reducing the causes and symptoms of burnout. Therefore, when considering candidates for promotion or hire, ethical mores should be a key criterion for any candidate, as ethical leaders are far more likely to cultivate a positive, sustainable work culture. 

¹ Jesse T. Vullinghs, Annebel H.B. De Hoogh, Deanne N. Den Hartog, and Corine Boon, “Ethical and Passive Leadership and Their Joint Relationships with Burnout Via Role Clarity and Role Overload.” Journal of Business Ethics, Vol. 165 (2020).

² Shenjiang Mo and Junqi Shi, “Linking Ethical Leadership to Employee Burnout, Workplace Deviance and Performance: Testing the Mediating Roles of Trust in Leader and Surface Acting,” Journal of Business Ethics, Vol. 144 (2017).

³ Michael E. Brown, Linda K. Treviño, and David A. Harrison, “Ethical Leadership: A Social Learning Perspective for Construct Development and Testing,” Organizational Behavior and Human Decision Processes, Vol. 97, No. 2 (2005).

⁴ “Controller’s Guidebook. Burnout in Accounting: Understanding the Problem, Leveraging Solutions,” FloQast.

Gregory Tobolewski is a PhD student at the University of Scranton in Scranton. He can be reached at gregory.tobolewski@scranton.edu.

Burnout has an incredibly negative impact on job performance. If not addressed, burnout can lead to individuals leaving the profession entirely. If there are increased reductions in staff, the corresponding increase in the workload for the remaining employees will lead to even greater levels of employee stress. The ratcheting up of stress may cause others to depart and can result in a perpetual cycle of burnout/turnover within the organization. One important factor in reducing employee burnout is the presence of an ethical leader.¹ Research has demonstrated that having a leader who acts in what is considered to be an ethical manner can reduce burnout levels within their employees and results in increased task performance.²

But what is an ethical leader, and how can they affect employee burnout? Ethical leadership has been defined as “The demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement, and decision-making.”³ In other words, a leader both walks the walk and talks the talk that exemplifies ethical behavior. Their words and actions demonstrate to all employees the appropriate behavior within an organization. In a perfect world, this ethical behavior will filter down and become the standard behavior for all. The following is a list of behaviors practiced by ethical leaders that can reduce employee burnout.

Reward and punish behavior appropriately – Ethical leaders are consistent in their treatment of employees. They do not allow inappropriate behavior to go unpunished, nor do they fail to reward employees who act in an exceptional manner. Both actions are equally important. Rewards are incentivizing; however, allowing improper behavior to continue can be demoralizing.

Provide clarity about standards and expectations – If a company appears to have a variety of standards, it will be difficult for employees to understand what is expected. Providing exact guidelines can help avoid inappropriate behavior. Clearly defining employee responsibilities will prevent improvising and create a more stable work environment. Improving clarity for employees can remove unnecessary confusion, resulting in greater efficiency and reducing overall workloads.

Transparency – Uncertainty about the future can increase employee anxiety, potentially sending individuals into a doom spiral of apprehension. For an employee already managing stress, uncertainty can act as a multiplier, exponentially increasing their burnout. Ethical leaders maintain transparency about future plans and challenges, which can help employees manage their concerns and focus on constructive solutions rather than their fears. Clear communication about the future can alleviate feelings of helplessness and uncertainty.

Involving employees in decision-making – Tangentially related to transparency, this step can address employees’ fears about the future. While not every decision is appropriate for employee engagement, including employees in the conversation will increase their feelings of empowerment and counteract feelings of depersonalization. Simple steps such as asking for feedback can go a long way to help employees feel that their voices are being heard and that they have a significant level of empowerment.

Fair treatment – During periods of increased workloads, such as tax season or year-end reporting, an increase in feelings of burnout can be expected. There are few options available to an ethical leader to resolve this issue, but one way they can mitigate the effect is to ensure employees are treated fairly and equally at these times. When the workload is shared equitably, employees are less likely to feel isolated and overwhelmed.

Demonstrate care for employees – Caring for your employees is an excellent way to build rapport and increase trust. Employees who feel that there is a genuine concern for their well-being will be able to endure far more than other employees. Individuals who feel they are being led by someone who cares for their well-being will be vastly more motivated to go the extra mile than employees who are simply ordered to do so.

Burnout in the accounting profession is a serious issue. In 2022, FloQast partnered with the University of Georgia’s Consumer Analytics program and conducted a survey that examined burnout rates within the accounting profession.⁴ The survey results revealed that 99% of accountants suffered from burnout. Organizations must take proactive measures to address its impact, managers can play a significant role. It has been shown that managers who act ethically are more effective at reducing the causes and symptoms of burnout. Therefore, when considering candidates for promotion or hire, ethical mores should be a key criterion for any candidate, as ethical leaders are far more likely to cultivate a positive, sustainable work culture. 

¹ Jesse T. Vullinghs, Annebel H.B. De Hoogh, Deanne N. Den Hartog, and Corine Boon, “Ethical and Passive Leadership and Their Joint Relationships with Burnout Via Role Clarity and Role Overload.” Journal of Business Ethics, Vol. 165 (2020).

² Shenjiang Mo and Junqi Shi, “Linking Ethical Leadership to Employee Burnout, Workplace Deviance and Performance: Testing the Mediating Roles of Trust in Leader and Surface Acting,” Journal of Business Ethics, Vol. 144 (2017).

³ Michael E. Brown, Linda K. Treviño, and David A. Harrison, “Ethical Leadership: A Social Learning Perspective for Construct Development and Testing,” Organizational Behavior and Human Decision Processes, Vol. 97, No. 2 (2005).

⁴ “Controller’s Guidebook. Burnout in Accounting: Understanding the Problem, Leveraging Solutions,” FloQast.

Gregory Tobolewski is a PhD student at the University of Scranton in Scranton. He can be reached at gregory.tobolewski@scranton.edu.