The C-Suite is yielding to pressures to focus more on human sustainability in the workplace.
Recently, Deloitte released The important role of leaders in advancing human sustainability Report in partnership with Workplace Intelligence and based on a study of 3,150 employees, managers and C-level executives across the U.S., U.K., Canada and Australia. Now in its third year, the survey reveals that the majority of the C-suite, including around eight out of 10 CEOs, say they’re feeling pressure from employees (82%), customers (78%), investors (78%), partners (77%) and board members (77%) to make public commitments to improve human sustainability.
I spoke by email with Sue Cantrell, vice president of products, workforce strategies at Deloitte Consulting, who defines human sustainability as, “the degree to which an organization creates value for people as human beings, leaving them with greater health and well-being, stronger skills and greater employability, good jobs, opportunities for advancement, progress toward equity, increased belonging, and heightened connection to purpose.”
She told me the survey found that shifting from a mindset that centers on extracting value from people toward an approach that refocuses on helping humans thrive is a leading course of action, especially in the face of growing stakeholder pressures, dwindling worker health and other workforce-related risks.
One of the more surprising facts, according to the report, is that leaders are mostly embracing this pressure: 88% would like their pay to be tied to human sustainability metrics, and 71% believe their company’s leadership should change if they aren’t advancing human sustainability. Around three out of four executives agree that human sustainability is an enterprise risk that should be measured and monitored (73%) and discussed at the board level (75%).
The report claims that doing well by workers and the world offers long-term benefits for both people and organizations. I recently reported on a meQ survey that supports these claims, showing that when employers refocus on employee hope and well-being, workers are less likely to suffer from burnout (74%), anxiety (74%) and depression (75%). And 33% are less likely to endorse quiet quitting.
But to help companies move their human sustainability efforts forward and reap these benefits, Cantrell recommends that leaders increase their understanding of worker realities at their own organizations. “In our survey, most executives (93%) and workers (88%) agree that the purpose of a company should be to create value not just for shareholders, but for human beings and society as well.” Cantrell points out that data from the survey also uncovers a disconnect between workers and leaders when it comes to taking action, as the following statistics indicate:
“It’s promising that so many of today’s leaders are willing to take ownership of human sustainability,” said Dan Schawbel, managing partner at Workplace Intelligence. “However, some executives don’t realize that their own employees are dealing with a sub-optimal work experience. The disconnects uncovered in our research should be a call to action for leaders as they embark on their mission to create greater value for all stakeholders within the broader human ecosystem.”
Cantrell suggests that to close that gap, leaders must consider using metrics focused on human outcomes, making public commitments around these metrics and aligning compensation with these outcomes. She believes that by prioritizing a positive human impact, organizations can reap the benefits of attracting new talent, appealing to customers and clients and increasing profitability, while workers can experience a positive effect on their well-being, skills development career advancement, inclusion and belonging, and their sense of purpose and meaning.
“Embracing human sustainability can have benefits for both business and people,” declares Paul Silverglate, U.S. executive accelerators leader and Deloitte’s U.S. technology sector vice chair. “Today’s C-suite has the opportunity to help ensure it is prioritized at the highest levels of their organizations, helping them become more rewarding and productive places to work.”
Renée Zavislak, a burnout expert and licensed California-based therapist, informed me that corporations big and small are starting to realize that refusing to proactively address employee well-being isn’t an option, but many businesses are learning this lesson the hard way. Burned out employees are costing employers $3,400 of every $10,000 in salary as productivity decreases. And depression alone is costing the global economy $1 billion in lost productivity.
“Companies need to respond to employee needs by respecting boundaries and the right to disconnect before resentment and burnout make top performers leave,” Zavislak declares. “Companies usually wait until it’s too late to act on burnout. They need to start embracing preventative solutions.” Zavislak concludes that when someone’s job security depends on working 60-80 hours a week, and they have to take calls on vacation, it means companies aren’t taking mental health seriously.
“There is an incredible momentum building for organizations to make meaningful change, adds Jen Fisher, retired managing director at Deloitte U.S. “But leaders should move away from a legacy mindset that centers on extracting value from people and instead embrace the concept of human sustainability, which can support the long-term, collective well-being of individuals, organizations and society.”
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