Humanity in leadership plays a crucial role in organizational sustainability and employee resilience. Leaders that prioritize and exhibit humane qualities such as trust, empathy, and compassion create an environment that fosters more sustainable practices by supporting the well-being of others.
In these modern times, investing in employee well-being is no longer a luxury but a must. Leaders now recognize that their employees' physical/mental health and overall well-being directly impact their organization's performance. Deloitte’s research shows that many organizations have even expanded the scope of their environmental, social, and governance (ESG) initiatives beyond diversity and inclusion initiatives to also include employee well-being. In addition to working towards a more sustainable future, Mckinsey & Co. research shows ESG initiatives also create value for organizations in five essential business areas.
Although there is often push-back to ESG and employee well-being investment, usually over their cost and concern over ROI, McLean & Company’s research shows these long-term strategies have serious financial benefits. Specifically, organizations with healthy and engaged employees have less employee turnover and burnout with heightened productivity. Accordingly, it is crucial for leaders to recognize the significance of work relationships and team dynamics in promoting the well-being of both employees and their organizations.
Consequently, human resource leaders are promoting a new style of sustainable leadership that aims to prioritize employee well-being. This style emphasizes developing organizational sustainability through the cultivation of agile and resilient employees. Developing leaders' character strengths is highly needed, as leaders with strong character see investment in ESG and employee well-being as a vital strategy for building more sustainable futures for organizations and societies.
By upholding more ethical and empathetic practices, leaders can positively affect employee engagement, and talent attraction/retention within their organizations. According to Korn Ferry’s research, attracting, retaining, and developing talent is crucial these days and for the future of organizational sustainability. Projecting that by 2030, there will be a global talent crisis with a shortage of over 85.2 million skilled workers, where the demand surpasses the available supply. Therefore, organizations that aren’t fostering more humane leaders who prioritize their employees’ and society's well-being risk losing out in the coming talent battle that will determine which organizations survive and which perish.
Read the full post, to learn some ways humanity in leadership contributes to organizational sustainability and worker resilience.