Failure to offer workplace flexibility risks long-term decline, says Aalto University study

Companies that fail to offer flexibility and remain static in their workplace practices risk long-term decline, according to new research from Aalto University School of Business.

The study, led by researcher Nikolina Koporcic-Nietola, found that a lack of adaptation can contribute to employee burnout and negatively impact organisational performance.

The research highlights that employees working in stagnant environments are more likely to experience emotional exhaustion, cynicism and a diminished sense of personal accomplishment. These symptoms often lead to decreased productivity, increased absenteeism and higher staff turnover, ultimately affecting a company’s financial performance and competitiveness.

Nikolina Koporcic-Nietola said: “Effective burnout management depends heavily on leadership empathy, open communication, and a supportive organisational culture. Leaders play a pivotal role in shaping the mental health of employees and facilitating burnout prevention and reintegration.”

The study also warns that burnout is a progressive condition requiring proactive measures. Companies that manage burnout effectively can improve employee well-being, reduce turnover, and maintain their competitive edge.