Why do performance incentives so often lead to burnout?

Professor Jean-Pierre Benoît joins Katie Pisa on The Why Podcast to explore a surprising question: why do so many high-performing employees end up burned out? Drawing on his latest research, Jean-Pierre explains that burnout is not simply the result of long hours or personal resilience. Instead, it can be a predictable consequence of the way organisations design incentives. Through an economist's lens, he reveals how bonuses, commissions and performance targets can encourage employees to work harder in the short term while quietly increasing the risk of exhaustion over time. The conversation explores how burnout develops gradually rather than appearing suddenly. As effort accumulates, so does fatigue, making it increasingly costly for employees to sustain high levels of performance. This creates a challenge for organisations seeking to motivate people without pushing them towards disengagement, ill health or turnover. Three key themes emerge from the discussion: • Burnout is often a systemic issue rather than an individual failing, arising from the way organisations structure work and reward performance. • Strong incentives can drive short-term results, but when effort accumulates over time they may also increase the risk of exhaustion, declining productivity and employee turnover. • Sustainable performance requires more than wellbeing initiatives alone; organisations must design incentive systems that allow employees to manage effort over the long term. For leaders, managers and employees alike, the episode offers a fresh perspective on one of the most pressing challenges in modern working life. The key insight is simple: burnout is not always an accident. In many cases, it is a predictable outcome of how organisations choose to motivate people. Discover more about Jean-Pierre and his research: ⁠https://www.london.edu/faculty-and-research/faculty-profiles/b/benoit-j For more thought leadership and business insights from London Business School faculty and alumni, visit ⁠⁠https://www.london.edu/think⁠⁠ Sign up to receive a curated selection of articles, podcasts and films direct to your inbox twice a month at ⁠⁠https://www.london.edu/think?entry=true#subscribeScreen⁠⁠ Follow us on social media: ⁠⁠https://x.com/LBS⁠⁠ ⁠⁠https://www.linkedin.com/school/london-business-school/⁠⁠ ⁠⁠https://www.facebook.com/LondonBusinessSchool