Best People Sustainability Insights of September 2024

PEOPLE SUSTAINABILITY

Insight #1: The Important Role of Leaders in Advancing Human Sustainability

Source: Deloitte Insights

Authors: Jennifer Fischer , Susan Cantrell , Jay Bhatt & Paul Silverglate

Summary: This report highlights the importance of "human sustainability," focusing on how organisations can create value for their workforce by enhancing health, skills, equity, belonging, and purpose.

?? Did You Know?

Over 80% of executives surveyed believe a more substantial commitment to positive human impact would boost their company's talent attraction (82%), customer appeal (81%), and profitability (81%).

?? Did You See?

?? Key Insights:

1. Only 56% of workers believe their company is advancing human sustainability, compared to 82% of C-suite executives.
2. Just 56% of workers rate their overall well-being as "excellent" or "good".
3. At least 40% of workers, managers, and executives report feeling exhausted or stressed "always" or "often".
4. 90% of executives believe working for their company positively affects worker well-being, while only 60% of workers agree.
5. 52% of workers say fair pay would significantly improve their well-being.
6. 82% of C-suite leaders agree they must be more accountable for advancing human sustainability.

?? Practical Takeaways for Leaders:

1?? Set the right metrics – Track human sustainability metrics like skills development and well-being.

2?? Make public commitments – Share transparent goals and progress on human sustainability.

3?? Link pay to sustainability – Align compensation with achieving well-being outcomes.

4?? Move beyond perks – Take a holistic approach by addressing workers’ broader needs, including fair pay.

5?? Empower your workforce – Provide resources, training, and clear metrics to support employees at every level.

DIVERSITY, EQUITY & INCLUSION

Insight #2: Women @ Work 2024 - A Global Outlook

Source: Deloitte Insights

Authors: Emma Codd & Elizabeth Faber

Summary: Deloitte's Women@Work survey examines the experiences of 5,000 women across 10 countries, revealing persistent challenges in workplace gender equality, mental health stigma, and the impact of domestic responsibilities on women's careers.

?? Did You Know?

More than one in 10 women think that women's rights have deteriorated in their country in the last year.

?? Did You See?

?? Key Insights:

1. 50% of women reported higher stress levels than the previous year.
2. 67% of women feel uncomfortable discussing mental health at work, fearing negative career impacts.
3. Over 27% of women face health challenges related to menstruation, menopause, or fertility.
4. Nearly 50% of women worry about safety at work or commuting.
5. Only 10% of women believe their employer is taking concrete steps toward gender equality.
6. 40% of women experiencing high pain levels work through it without taking time off.
7. Only 19% of women felt supported by their employers when they disclosed menopause-related issues.
8. 50% of women with children take on the primary responsibility for childcare.
9. Women with significant domestic responsibilities report lower mental well-being and job satisfaction.
10. 43% of women experienced non-inclusive behaviours, including micro-aggressions and harassment, in the past year.

?? Practical Takeaways for Leaders:

1?? Implement comprehensive mental health support programmes and create safe spaces for women to discuss health-related issues.

2?? Develop policies to address workplace safety concerns and non-inclusive behaviours.

3?? Take concrete steps towards gender equality, such as promoting women to leadership positions and creating gender-diverse leadership teams.

4?? Provide flexible work arrangements to support work-life balance, especially for women with significant domestic responsibilities.

5?? Offer better support for women experiencing menstruation, menopause, or fertility-related health challenges.

Insight #3: Uncover the Ageism Hiding in Your Organisation

Source: MIT Sloan Management Review

Authors: Matthew Lifschultz

Summary: This article explores the "longevity economy" and introduces the Age AWARE Audit framework, guiding businesses in promoting inclusivity and recognising the economic value of older employees.

?? Did You Know? Two-thirds of labour force respondents aged 50 and older reported experiencing age discrimination in the workplace.

?? Key Insights:

1. The over-50 population holds a substantial portion of household wealth and contributes significantly to consumer spending.
2. Age-inclusive strategies can improve knowledge retention, foster innovation, and enhance brand reputation.
3. The Age AWARE Audit framework focuses on Accessibility/design, Workplace, Adaptability, Representation, and Engagement.
4. A vast majority of older adults report experiencing ageism daily.
5. 82% of executives believe a more substantial commitment to human sustainability would increase their company's ability to attract new talent.

?? Practical Takeaways for Leaders:

1?? Conduct an age audit of your workforce – This will help you understand the age distribution across your organisation.

2?? Analyse promotion and departure patterns by age – Identify age-related biases in career advancement and retention.

3?? Review job postings for age-biased language – Ensure recruitment processes don’t unintentionally discourage older applicants.

4?? Examine policies for unintended age discrimination – Revise practices that may unfairly impact employees based on age.

5?? Create cross-generational mentoring programs – Promote collaboration and knowledge sharing across age groups.

6?? Provide age bias training – Raise awareness and foster a more inclusive environment. Raise awareness and foster a more inclusive environment.

Insight #4: Women in the Workplace 2024: The 10th-anniversary report

Source: McKinsey People & Organizational Performance & LeanIn

Authors: Alexis Krivkovich , Emily Field , Lareina Yee , Megan McConnell & Hannah Smith

Summary: This comprehensive study, conducted in partnership with LeanIn, marks a decade of tracking women's experiences in corporate America. It highlights progress, ongoing challenges, and recommendations for fostering gender equity in the workplace.

?? Did You Know?

For the first time in 10 years, companies are reporting a decline in career development, mentorship, and sponsorship programs for women, as well as in recruitment and internship initiatives specifically focused on advancing female talent.

?? Did You See?

?? Key Insights:

1. Women now hold 29% of C-suite roles, up from 17% in 2015.
2. For every 100 men promoted to manager, only 81 women achieve the same level.
3. 42% of senior women have witnessed micro-aggressions against other women, compared to 10% of senior men.
4. Around 40% of women say they are responsible for most household work, unchanged since 2016.
5. Women of colour remain underrepresented at 7% of C-suite positions.
6. The "broken rung" phenomenon persists, with only 54 Black women promoted to manager for every 100 men.
7. Women of colour, LGBTQ+ women, and women with disabilities face the highest rates of demeaning interactions.

?? Practical Takeaways for Leaders:

1?? Strengthen career development – Provide managers with the tools to support women’s growth through tailored feedback and guidance actively.

2?? Combat micro-aggressions – Implement stricter accountability and training programs to foster an inclusive environment for women at all levels.

3?? Enhance allyship – Ensure bias and allyship training lead to actual behaviour changes, especially for marginalised women.

4?? Prioritise work-life balance – Promote flexible work policies, especially for women managing caregiving responsibilities, to reduce the work-life disparity.

5?? Address the "broken rung" – Close the gap by promoting more women into managerial roles to build a more robust leadership pipeline.

EMPLOYABILITY & LEARNING CULTURE

Insight #5: Why You Should Let Your Favorite Employee Move to Another Team

Source: MIT Sloan Management Review

Authors: JR Keller & Kathryn Dlugos

Summary: This article explores the detrimental effects of internal talent hoarding and highlights the benefits managers can gain by supporting their employees' career advancement.

?? Did You Know?

75% of managers engage in talent hoarding, intentionally keeping skilled employees in their current roles despite growth opportunities elsewhere.

?? Key Insights:

1. Managers with higher rates of promoting subordinates received 43% more internal applications overall.
2. Managers supporting employee advancement attracted 32% more applicants from other functions than those with lower promotion rates.
3. A manager's reputation for supporting promotions follows them throughout the organisation, even when changing roles.
4. The positive effects of supporting employee advancement persist for at least three years.
5. Many companies require employees to get their current manager's approval to apply internally, enabling managers to block promotions directly.
6. Managers who promoted employees at higher rates continued to receive more applications in subsequent years.

?? Practical Takeaways for Leaders:

1?? Implement internal talent markets – Make it easy for employees to apply for internal roles without manager approval bottlenecks.

2?? Incentivise talent development – Offer rewards to managers who promote team members.

3?? Enhance leadership metrics – Track and reward managers for advancing their employees into new roles and functions.

4?? Foster a culture of mobility – Encourage career conversations and support cross-team moves to promote employee growth.

5?? Track promotion rates – Use data to identify talent hoarding and share best practices from managers who excel at talent development.

EMPLOYEE EXPECTATIONS

Insight #6: Decoding Global Talent 2024 - How Work Preferences Are Shifting in the Age of GenAI

Source: Boston Consulting Group (BCG)

Authors: Jens Stefan Baier , Orsolya Kovacs-Ondrejkovic , Vinciane Beauchene , Niharika Jajoria Julie Bedard , & Ashish Garg

Summary: The "Decoding Global Talent 2024" report reveals a shift in global workforce priorities, with job security and learning opportunities now topping the list. GenAI adoption is proliferating, especially in emerging markets, pushing companies to offer reskilling programs and flexible, skills-based career paths to stay competitive.

?? Did You Know?

64% of workers worldwide are confident in negotiating for better roles in today’s labour market.

?? Did You See?

?? Key Insights:

1. Job Security is now the top priority globally, surpassing work-life balance and compensation. GenAI is pushing workers to focus on long-term employability.
2. Workers in emerging markets are adopting GenAI faster than their counterparts in advanced economies. 39% of global workers use GenAI regularly.
3. Learning and Development has seen a resurgence, with employees increasingly aware that upskilling is critical to staying competitive in the face of automation.
4. Work-life balance remains a strong preference for employees, with GenAI playing a role in potentially freeing up time for personal life.

?? Practical Takeaways for Leaders:

1?? Build Robust Reskilling Programs – Build comprehensive reskilling programs to keep your workforce agile and future-ready.

2?? Offer Flexible Career Paths – Offer flexible, skills-based career paths that enhance employability and long-term career growth.

3?? Leverage GenAI for Efficiency – Leverage GenAI to boost work efficiency while unlocking and nurturing human creativity.

4?? Encourage Work-Life Balance with AI – Encourage a healthy balance between productivity and well-being using AI to automate repetitive tasks.

5?? Ensure Job Security Through Transparency – Ensure job security through transparent communication about the evolving role of technology in the workplace.

6?? Provide Clear Career Development Paths – Provide clear and transparent career development paths, emphasising continuous learning as a key to future job security.

GLOBAL WORKFORCE MANAGEMENT

Insight #7: Highly Skilled Professionals Want Your Work But Not Your Job

Source: Harvard Business Review

Authors: Diane Gherson & Lynda Gratton

Summary: This article explores the growing trend of highly skilled professionals preferring freelance work over full-time employment and how companies can effectively manage a blended workforce of employees and freelancers to meet their talent needs.

?? Did You Know?

Over one-third of companies (35%) now rely on freelancers for strategic, high-impact work, reflecting a significant shift in workforce dynamics.

?? Did You See?

?? Key Insights:

1. Many companies lack essential in-house capabilities for digital transformation.
2. 65% of knowledge workers believe they can find better freelancer opportunities than full-time employees.
3. 73% of executives anticipate relying more on freelancers in the coming years.
4. Traditional temporary staffing models are inadequate for integrating skilled freelancers effectively.

?? Practical Takeaways for Leaders:

1?? Develop a blended workforce strategy – Integrate freelancers with clear communication, project management, and knowledge transfer processes.

2?? Redesign onboarding for freelancers – Ensure quick cultural and operational integration.

3?? Use collaborative technologies – Invest in platforms that bridge in-house teams with external talent securely.

4?? Adapt management practices – Focus on output and results for all team members, regardless of employment status.

5?? Foster a culture of inclusion – Promote collaboration and knowledge sharing between full-time staff and freelancers.

HEALTH, WELL-BEING, & PSYCHOLOGICAL SAFETY

Insight #8: New Hires’ Psychological Safety Erodes Quickly

Source: Harvard Business Review

Authors: Derrick Bransby , Michaela Kerrissey & Amy Edmondson

Summary: This article explores how new hires' psychological safety diminishes quickly after onboarding, revealing critical insights for organisations seeking to maintain openness and innovation in their teams.

?? Did You Know?

“New hires experience a 22% decrease in psychological safety within their first 90 days on the job.”

?? Did You See?

?? Key Insights:

1. Psychological safety declines rapidly for new hires, with a 22% drop in the first 90 days despite initial enthusiasm.
2. The "juniority benefit" has hidden costs, as younger employees bring fresh ideas, but losing experienced staff can harm team dynamics and psychological safety. Half of employees feel uncomfortable raising issues at work.
3. Accelerated onboarding, adopted by 75% of Fortune 500 companies, can be a double-edged sword. Without addressing psychological safety, organisations risk missing valuable insights from new hires during their transition.

?? Practical Takeaways for Leaders:

1?? Extend onboarding processes – Continue support and integration beyond the initial few weeks to ensure long-term success.

2?? Implement regular check-ins – Schedule frequent one-on-ones with managers to address concerns.

3?? Provide ongoing learning opportunities – Offer continuous training to help new hires adapt and develop.

4?? Foster team inclusion – Actively involve new hires in team discussions and decisions.

5?? Set clear expectations – Transparently communicate job responsibilities and performance metrics from day one.

6?? Create psychologically safe environments – Train managers to encourage risk-taking and open communication.

HYBRID WORK

Insight #9: Hybrid Working from Home Improves Retention Without Damaging Performance

Source: Nature Magazine

Authors: Nick Bloom , Ruobing Han & James Liang

Summary: This study demonstrates that hybrid work boosts employee retention and satisfaction while maintaining performance levels, countering executive concerns about the productivity of remote work.

?? Did You Know?

Remote work reduced employee turnover by 33% overall, significantly impacting non-managerial staff, women, and employees facing longer commutes.

?? Did You See?

?? Key Insights:

1. Hybrid working reduced quit rates by one-third.
2. Job satisfaction scores improved among employees with hybrid schedules.
3. No significant impact on performance grades over the next two years of reviews.
4. Managers revised their views on hybrid working's effect on productivity from an initial perceived negative impact of -2.6% to a positive +1.0% after the experiment.
5. Reducing quit rates was particularly significant for non-managers, female employees, and those with long commutes.
6. Null equivalence tests showed no evidence for differences in promotion rates over the next two years.

?? Practical Takeaways for Leaders:

1?? Offer hybrid options – Allow employees to work from home at least twice weekly to boost satisfaction and reduce turnover.

2?? Design policies with demographics in mind – Consider how hybrid work impacts non-managers, women, and those with long commutes.

3?? Track performance data – Regularly review performance metrics to ensure productivity and promotions aren’t negatively affected by hybrid schedules.

4?? Educate managers – Train managers to understand the benefits of hybrid work and address any concerns.

5?? Reevaluate policies regularly – Continually assess hybrid work policies to ensure they align with employee needs and organisational goals.

RESPONSIBLE DEPLOYMENT OF AI & TECHNOLOGY

Insight #10: 5 Employee Fears of AI and How to Overcome Them

Source: Gartner

Authors: Duncan Harris & Kate Zolner

Summary: This report identifies employees' five main concerns about AI and provides actionable strategies to alleviate these fears, promoting smoother AI integration in the workplace.

?? Did You Know?

62% of employees express ethical concerns regarding using AI within their organisations.

?? Did You See?

?? Key Insights:

1. 75% of employees express concerns about AI's impact on their jobs.
2. 37% of employees worry about AI replacing their jobs entirely.
3. 32% fear their skills will become outdated due to AI advancements.
4. Unaddressed fears can lead to decreased engagement and productivity.
5. Job loss and skill obsolescence are the top concerns among employees.

?? Practical Takeaways for Leaders:

1?? Develop a comprehensive AI communication strategy to articulate the organisation's AI vision and its impact on roles and responsibilities.

2?? Invest in upskilling and reskilling programmes to help employees develop AI-complementary skills.

3?? Foster human-AI collaboration by emphasising AI as a tool to augment human capabilities rather than replace them.

4?? Implement robust data privacy and ethical AI practices to address employee concerns.

5?? Involve employees in developing AI ethics policies to build trust and address privacy concerns.

6?? Showcase successful examples of human-AI collaboration within the organisation to alleviate fears.

7?? Create personalised learning paths to address individual skill gaps and career aspirations in the context of AI integration.

Insight #11: Ethical Considerations in Using AI for HR

Source: myHRfuture

Author: Jasmine Panayides

Summary: This article discusses the ethical implications of using AI in HR, emphasising privacy, data security, and bias prevention. It outlines the EU AI Act, which categorises AI systems by risk and mandates strict compliance for high-risk applications.

?? Did You Know? The EU AI Act categorises AI systems by risk, imposing stringent compliance requirements for high-risk AI applications in HR, such as recruitment and performance evaluations.

?? Key Insights:

1. Protecting employee data and ensuring compliance with data protection laws is crucial to maintaining trust and security.
2. Addressing inherent biases in AI systems is essential for fairness and equity in AI-driven HR decisions.
3. Maintaining transparency in AI processes and establishing clear accountability frameworks are vital to addressing ethical issues and building trust.
4. The EU AI Act imposes strict compliance requirements for high-risk AI applications in HR.
5. Continuous risk management practices are necessary to proactively identify and mitigate AI risks.
6. Human oversight is crucial to ensure ethical AI use and address ethical concerns.

?? Practical Takeaways for Leaders:

1?? Communicate AI’s supportive role – Highlight how AI enhances human work rather than replacing it.

2?? Provide AI upskilling opportunities – Offer training programs to help employees adapt to new AI technologies.

3?? Demonstrate AI’s value through pilot projects – Showcase real-world examples of AI benefiting employees and the organisation.

4?? Establish transparent AI governance – Implement policies for responsible AI use and data handling.

5?? Address job security concerns – Be transparent about AI’s impact on roles and future job opportunities.

SUSTAINABLE LEADERSHIP

Insight #12: Unleashing Tomorrow's Leaders: Navigating the Opportunities and Challenges in Leadership Succession, Diversity, and Success

Source: PeopleCentriX

Authors: Tanguy Dulac & Bruno Alves de Carvalho

Summary: This article discusses leadership trends, focusing on leadership succession, diversity, and the evolving expectations of leaders and employees in the workplace. It offers evidence-based strategies for navigating these challenges.

?? Did You Know?

Between 2006 and 2021, new female managers were 11% to 28% less likely to succeed within their first 12 months than new male managers.

?? Did You See?

?? Key Insights:

1. By 2030, nearly one-third of current Swiss managers (27.3%) will retire.
2. Millennials will double their presence in management by 2030.
3. Only 43.5% of new managers successfully transitioned into leadership roles from 2006-2021.
4. Over half (53%) of managers feel burned out.
5. Women represent 40% of leadership teams but are still 50.6% less likely to be managers than Millennial men.
6. Leadership quality perception dropped from 48% in 2020 to 40% in 2022.
7. Manager resignations increased 38-66% from 2014-2021.
8. Millennials are 72-112% more likely to quit than Boomers and female managers are 20-39% more likely to leave than their male peers.

?? Practical Takeaways for Leaders:

1?? Succession Planning – As retirements increase, a strong focus on succession planning will ensure leadership continuity and mitigate knowledge loss risks.

2?? Support Systems – Providing tailored development for new managers, particularly women and millennials, can accelerate their effectiveness and confidence in leadership roles.

3?? Burnout Prevention – Promoting work-life balance and mental health support can help reduce burnout, which is crucial for maintaining long-term productivity and retention.

4?? Mentorship Programs – Establishing mentorship initiatives for millennial leaders can strengthen their leadership skills and improve perceptions of leadership quality.

5?? Inspirational Leadership – Developing leaders who inspire and empower their teams can combat the decreasing confidence in leadership across organisations.

6?? Reducing Resignations – Focusing on strategies to retain millennial and female managers will be critical to maintaining a diverse and influential management team.

7?? Gender Disparities – Targeted initiatives to develop and promote women into management roles will help address ongoing gender imbalances in leadership.

For information: Brian Heger , David Green ???? , David McLean , Dave Ulrich , Nick Lynn , Nicolas BEHBAHANI

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