Are Employees Being Paid To Burnout? The Discreet Rewards Of Overwork

Read this blog post to learn more about:

• Why burnout should be seen not as an individual failure, but as a systemic outcome

• How workplace incentives encourage unhealthy environments

• How Game Theory motivates competitive overwork in corporate environments

• Why Signalling Theory normalises burnout as a marker of commitment

Are We Incentivized to Burn Out?

Research shows that burnout has intensified overtime. In 2019, data from the Health and Safety executive has portrayed that around 828,000 workers have reported burnout, through work-related stress, depression or anxiety, accounting for 51% for workers in the United Kingdom. In contrast to this, the Mental Health UK burnout report of 2026 indicates that 91% of adults now experience intense stress, leading to burnout. This increase suggests that modern workplaces may increasingly incentivise continuous overwork.

In academic and professional workplaces, burnout is increasingly understood not as a personal shortcoming but as a systemic outcome shaped by organizational incentives (Söderfeldt, Söderfeldt and Warg, 1995) Yet, in some cases, burnout can even function as a socially acceptable way of withdrawing from responsibilities without being labelled ‘deviant’ (Shirom 1989). Burnout is defined as “a state of fatigue or frustration brought about by devotion to a cause, way of life, or work with people in emotionally demanding situations” (Söderfeldt, Söderfeldt and Warg, 1995) This portrays burn out as a sign of hard work rather than laziness. Overall, both perspectives imply that burnout rises from social and professional systems. 

Incentives play a central role in shaping behaviour within these systems (James, P. (2012). An incentive “something that encourages a person to do something by offering them a reward” (Cambridge Dictionary, 2024). While some argue that such incentives encourage a healthy lifestyle (James 2012), it can also be argued that, in many workplaces, incentives encourage unhealthy work patterns. In environments where competitiveness and productivity are rewarded, individuals may push themselves beyond sustainable limits; overwork, and its byproduct of burnout, may be indirectly rewarded. 

Game Theory and Competitive Overwork

Concepts such as Game theory provides an understanding how such incentives influence behaviour. Game theory focuses on strategic decision-making in situations where outcomes depend on the actions of others (Rabin. M, 1993) Through the evolution of the theory, “general equilibrium theory has been nearly swept off stage in order to make room for game theory,” reflecting a growing emphasis on strategic interaction rather than isolated decision-making (Cournot, 1838). 

In competitive work environments, individuals may choose to overwork because they assume others will do the same. This behavior stems from concerns about promotions, performance evaluations, and job security. (Borch,K, 1967) If overwork becomes the norm, employees feel compelled to match this behavior to avoid falling behind (Söderfeldt, M., Söderfeldt, B. and Warg, L. 1995). Consequently, burnout becomes widespread despite being harmful, demonstrating how rational decision-making can lead to collectively damaging outcomes (Kreps, 1990) (Figure 1).

Signaling Theory and the Normalisation of Burnout

Signaling Theory further explains why burnout has become normalised. This theory suggests that individuals use observable behaviors to communicate unobservable traits such as competence, dedication, or value (Spence, 1973). In some environments, exhaustion from long hours and constant availability functions as observable signals of dedication and commitment. (Connelly, B. et al, 2024). Workers who display these behaviors are often rewarded with increased opportunities and career advancement, emphasising how overwork is acceptable and desirable (Edú-Valsania, S. et al. 2022)

Figure 1. Schematic overview illustrating how workplace incentive structures contribute to the normalisation of burnout. Drawing on Game Theory and Signalling Theory, this drawing demonstrates how rational decision-making and signalling theory behaviours encourage overwork, which is then reinforced through systematic rewards, creating a self-perpetuating cycle.

In conclusion, burnout is a cumulative result of a person’s inability to cope and incentive structures, competitive environments, and cultural norms that reward excessive work. Game Theory demonstrates how rational decision-making can push workers toward unsustainable behaviors, and Signaling Theory reveals how burnout becomes a symbol of value within certain work cultures. When overwork is  socially rewarded, individuals are more likely to prioritise performance over well-being, contributing to a broader systemic issue, embedded in environments that award productivity above all else. 

Bibliography:

Söderfeldt, M., Söderfeldt, B. and Warg, L.-E. (1995) ‘Burnout in social work’, Social Work, 40(5), pp. 638–646. 

Cambridge Dictionary (n.d.) Incentive

Maslach, C., Schaufeli, W.B. and Leiter, M.P. (2001) Job burnout, Annual Review of Psychology, 52, pp. 397–422. 

Cropanzano, R. and Mitchell, M.S. (2005) ‘Social exchange theory: An interdisciplinary review’, Journal of Management, 31(6), pp. 874–900

Spence, M. (1973) ‘Job market signalling’, The Quarterly Journal of Economics, 87(3), pp. 355–374. 

Kreps, D.M. (1990) ‘Corporate culture and economic theory’, in Alt, J.E. and Shepsle, K.A. (eds.) Perspectives on positive political economy. Cambridge: Cambridge University Press, pp. 90–143. 

Edú-Valsania, S. et al. (2022) ‘Burnout syndrome: review of theory and measurement’, PMC

Connelly, B. L., Certo, S. T., Ireland, R. D. and Reutzel, C. R. (2024) Signalling theory and organisational signalling in psychology and management. Springer

Cournot, A. (1838) Researches into the mathematical principles of the theory of wealth. Paris: Hachette.

James, P. (2012) Health incentives and behaviour change. London: Palgrave Macmillan.

Shirom, A. (1989) ‘Burnout in work organizations’, in Cooper, C.L. and Robertson, I.T. (eds.) International review of industrial and organizational psychology. Chichester: Wiley, pp. 25–48.

Mental Health UK (2026) Burnout Report 2026: High stress pushing workers into sick leave as just one in four feel mental health is genuinely prioritised and supported in the workplace. Mental Health UK, 16 Jan.

Public and Commercial Services Union (PCS) (no date) Focus on stress and burnout. Available at: https://www.pcs.org.uk/campaigns/focus-why-climate-change-trade-union-issue/focus-stress-burnou