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Nearly 90% of Executives Want Compensation Tied to Human Sustainability Metrics

A recent exploration by Deloitte uncovers that nearly 90% of leaders are pushing for compensation to be linked to metrics of human sustainability. This change is aimed at addressing a myriad of issues in the workplace that have troubled organizations in recent years, such as widespread worker burnout, deteriorating mental health, workplace aggression, and severe weather occurrences.



The examination revealed that both employees and leaders perceive that various significant concerns continue to impact human sustainability within companies. Merely 43% of employees report that their organizations have left them in a better state than when they initially joined, while leaders indicate that their employees have been or will be influenced by a broad array of trends, including rapidly changing skill requirements (81%), burnout (78%), and risks to mental well-being (78%).


Insights gleaned from the Deloitte Survey highlight that more than 80% of surveyed leaders believe that emphasizing a positive human influence would bolster their company's capacity to attract fresh talent, appeal to customers, and enhance profitability. However, despite endeavors, only 56% of employees believe their overall well-being is "excellent" or "good," a statistic that has remained relatively constant since 2022 according to the survey.


The Risk to Engagement and Loyalty indicates that engaged employees and those who have faith in their leaders are more than 2.5 times likely to state that their company is progressing in terms of human sustainability, in comparison to disengaged employees and those who lack trust in leadership.


There exists a noticeable disparity between the perceptions of leaders and the actual encounters of employees. While approximately 90% of executives believe that working for their organization positively impacts employee well-being, skill development, career growth, inclusivity, and a sense of belonging, only 60% or fewer employees concur. This disparity underscores the necessity for leaders to acquire a more precise understanding of how their workforce is truly faring.


Leaders hold a crucial role in advancing human sustainability by incorporating metrics that gauge human outcomes and making their organizations answerable for advancement. The survey indicates a strong inclination among both employees and leaders towards linking compensation to human sustainability metrics: hence, 88% of Executives prefer at least 25% of their compensation to be tied to human sustainability metrics, 83% of Managers share this preference, and 76% of Workers agree with this approach.


The survey involved 3,150 C-suite executives, managers, and employees across four countries, shedding light on the obstacles and pressures leaders encounter in embracing a focus on human sustainability and the potential impacts on both people and businesses of this transition.


For a deeper understanding of Deloitte's third annual Workplace Well-being report, click here to access the survey.



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