In most organisations, reward is still treated as a transaction — a way to recognise output. But in a world defined by burnout, high turnover, and performance fatigue, that model is starting to crack. 

As a workplace strategist advising organisations across Europe and the Middle East, Monta Sir Benali emphasises that, “Recognition shouldn’t just celebrate what people produce — it should protect what makes that production possible: their energy.” 

According to Mental Health America and FlexJobs (2024), 76% of workers say workplace stress affects their mental health, and 75% have experienced burnout. Gallup reports that teams with high wellbeing are 21% more productive. In short — wellbeing isn’t a perk; it’s a measurable performance variable. 

Reward professionals play a crucial role here. Pay and benefits are powerful signals — they shape culture as much as they reflect it. When reward frameworks only incentivise volume and speed, they unintentionally reinforce the very behaviours that lead to exhaustion. 

The next evolution of reward design is not just financial — it’s behavioural. Systems should value recovery, reflection, and collaboration just as much as individual drive. For example, bonus criteria could include team resilience, innovation born of rest, or leadership behaviours that protect wellbeing. 

It’s time to move from performance at any cost to performance that lasts. Recognition should be as much about how success is achieved as what is achieved. 

We’ve seen this again and again; organisations with a culture that rewards sustainable energy — not just endless effort — will be the ones that keep their best people, attract new talent, and build trust that no payslip alone can buy. 

When Reward Becomes Risk, by Emma Gross

Reward systems are powerful cultural drivers — and when designed without regard for wellbeing, they can create unintended legal and governance exposure. 

As an employment law partner advising financial institutions and professional services firms, I’m seeing this risk surface more often. Bonus structures tied exclusively to constant availability or unsustainable workloads are not just bad for morale — they’re increasingly becoming a compliance issue. 

The Legal Dimension of Overwork 

The traditional “high reward for high output” mindset can unintentionally breach an employer’s legal duties. When excessive workloads or round-the-clock expectations lead to stress-related illness or mental health decline, organisations face growing exposure to personal injury and stress claims, where employees allege psychiatric injury caused by overwork or lack of support. 

Constructive dismissal, when individuals resign due to intolerable pressure or toxic reward-driven environments. 

Disability discrimination, under the Equality Act 2010, where long-term stress or anxiety is treated as a disability requiring reasonable adjustments. 

Harassment and bullying complaints, where high-pressure cultures and aggressive incentive schemes contribute to psychological harm. 

The cost of getting this wrong goes far beyond legal fees. It affects reputation, retention, and regulatory trust. 

A recent Employment Tribunal case (DB v Financial Services Compensation Scheme Ltd, 2025) underlined this shift: the tribunal examined workplace culture and reward expectations as part of a wider claim of unfair dismissal and discrimination. 

The takeaway? When culture drives harm, leaders are accountable — even if the harm was “unintended.” 

Aligning Reward with Responsibility 

The Financial Conduct Authority (FCA) has reinforced this message with its extension of non-financial misconduct rules, which now capture toxic culture, bullying and psychological harm as breaches of conduct standards. 

This is a clear signal that how performance is achieved now matters as much as what is achieved. Pay and reward policies that ignore wellbeing can be seen as governance failures. 

HR and reward leaders should therefore be asking: Are our reward structures driving sustainable performance or burnout? 

Do our bonus criteria include positive leadership behaviours, not just financial metrics? 

Are we rewarding collaboration, innovation and integrity — or only relentless output? 

From Compliance to Culture Change 

Embedding wellbeing into reward frameworks isn’t about being “soft.” It’s about managing operational risk. Organisations that fail to address burnout or excessive workloads may find themselves in breach of their duty of care — but those that proactively design for recovery build stronger, more resilient teams. 

This means training managers to spot early signs of fatigue, conducting psychological-safety audits, and rewarding teams that prioritise balanced performance. Recovery time, healthy workloads and clear boundaries should be viewed as assets — not indulgences. 

Ultimately, reward professionals sit at the crossroads of performance and protection. By integrating wellbeing into reward design, they not only futureproof their organisations against legal exposure, but also strengthen the very foundations of performance. 
  
Rewarding What Lasts 

When recognition systems honour sustainable effort, they create cultures where people can thrive — not just survive. 

In today’s regulatory and social climate, it’s no longer enough to reward results. The real differentiator lies in valuing the human capacity that makes those results possible. 

Emma Gross is an Employment Law partner at Spencer West LLP and Monta Sir Benali is a Leadership & Cultural Transformation consultant at NLMTD