We now work in a human-powered economy. Businesses have reached a defining moment, with many transitioning towards an economy driven and inspired by the minds and the valued traits of people. For many businesses today, the people are the most critical ingredient and these connections generate the value for an organisation, from revenue and innovation to productivity and risk.
Yet, businesses’ plans to prioritise these elements are falling short, partly due to many being stuck in a legacy mindset, focusing on harnessing value from people, instead of working with them to provide a more proactive and resilient future for both individuals and the business.
To strengthen the vision of ESG, business leaders should adapt their approach around the concept of human sustainability; exploring their focus on creating value for people, strengthening skill sets, well being and providing opportunities for progression and connections. In the 2023 Global Human Capital Trends Report, the concept of human sustainability focused less on how people benefit their company and more on how much their company benefits people.
Focusing on human sustainability can help businesses deliver benefits for both sides. While individuals can bring risks to a company, they also offer great opportunities. Studies show that companies engaged in practices associated with human sustainability produce stronger business results. A report by the University of Oxford Wellbeing Research Centre found a distinct correlation between employee wellbeing and business performance, including increased profits and higher recorded levels of wellbeing.
Furthermore, businesses that are considered the most innovative on tackling sustainability issues, consistently outperform their competitors. There are several factors that could influence the connection between human sustainability and enhanced business value:
Focusing on human sustainability may help businesses create the benefits of greater diversity, equity and inclusion. Companies with greater diversity have proven to outperform their competitors financially.
Companies that invest in skills development will create better business results. A study suggested that over 80% of professionals at high performing companies believe they receive the necessary training to do their jobs well.
Limiting investment on the workforce can have implications. Reduced pay often results in higher turnover, lower sales and productivity, reduced innovation and higher levels of frustration from customers and managers.
Strengthening employee health and wellbeing reduces risk in the workforce. Many employees state that improving their health is more of a priority than career progression and that they are considering moving to another job that is more fitting for their wellbeing.
Customers are more likely to support socially responsible businesses. The majority of customers say they are more inclined to buy from companies that are socially responsible.
Based on these factors, a human sustainability approach can help solidify a business, strengthen their access, engage and build a diverse team, become a more productive and rewarding workplace and increase their appeal to customers.
How can business leaders support and drive human sustainability?
Embracing human sustainability requires a business to reconsider the way it assesses its relationships with people. A human sustainability mindset differs from the transactional way of thinking about people, and focuses more on delivering value for each individual connected to an organisation. This transition can create the platform for leaders to implement key actions that support a human sustainability agenda.
Human sustainability requires a long term approach. The strategies implemented today will help determine whether professionals, companies and society experience and flourish today and in the future. It will deliver a better future, one that prioritises the connection between everything we do and need, including climate action, equity, well being and belonging. It will encourage business leaders to recognise and act on their role as key influencers of human progression.
The concept of human sustainability is based on just a few principles. Firstly, the people connected with your business have the ability and power to influence it in very important ways. Equally, your business has the power to affect each of them and by recognising this value for both sides, the organisation and its employees can strengthen business, work and life for everyone.
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