Sam is an Australian based Non-Executive Director and former CEO. She chairs the Remuneration and People Committee at Newcastle Permanent.
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Board directors know that many recent workplace and workflow changes are here to stay; staff need to know we're looking out for their best interests.
The rules of the game changed drastically in the last two years.
At times it felt like there were so many rules that it was impossible to keep track of them all. Some may have thought that everything would go back to the way it was before. Most of us suspected this would not be the case. It’s clear now, in 2022, that a lot of the massive adjustments and switches in how we work are definitely permanent.
The pandemic has led to new structures and modalities in societies that have become entrenched, often for the better. Covid-19 has caused seismic shifts in all organizations. The consequences are far-reaching and the transformations are not temporary. This is difficult for many people at every level in businesses—from the board room to the mailroom. It's a lot to fathom with much to unpack. It’s probably best then, to focus on the really important stuff first—to triage and to prioritize like never before. Therefore, directors need to understand what the crucial matters are right now and then move forward (rapidly).
I think that most of us do grasp this, but for anyone who’s not totally sure what the name of the game is now, it’s humanity. Businesses need to let their humans know that "We’ve got you covered." Organizations should clearly demonstrate—within the company and out—that they will not tolerate unethical behavior. We're seeing significantly increased endeavors from companies across the globe to smarten up their ESG (environmental, social, governance) protocols. This ties in with the emphasis in recent years on organizations to demonstrate that they conduct themselves not only with upstanding morality but with serious purpose. More and more companies are prioritizing a conscientious social contract with the communities who support them—communities that comprise customers, employees, managers, suppliers and everyone else who keeps a business ticking over.
The focus should be on human beings, not the bottom line.
It's bigger than beefing up human resources, too, although this is definitely an important aspect. It involves board meetings, where the company’s true purpose is discussed and agreed upon. It’s about directors deciding not to deal with that supplier who has questionable human rights and/or labor practices. It’s about redefining a company’s employee value proposition (EVP). These matters cannot be palmed off to the HR department but must be at the top of the agenda when the board meets. That’s the new way.
There will be companies that fail to embrace this new order, and it will likely be to their detriment. Workers in so many industries have a much stronger hand now. It’s become evident that there are currently many excellent career options, for the youngest and the brightest in particular. They want increased flexibility and enhanced autonomy in what they do. Directors must recognize this and run with it. Otherwise, their organizations are going to lose top talent faster than you can say EVP. Gartner has even put forth research that shows why business leaders must prioritize "the human deal" that focuses on a holistic EVP approach.
We need to be offering employees the flexibility they desire, like a hybrid model, and much more. This is about fundamental flexibility as a human being. It entails empowering personal growth at work but also in all aspects of life. Your business should look far beyond the parameters of the employer/employee contract. Your company and workers should enjoy a shared sense of purpose.
These concepts which may have been dubbed "touchy-feely" and scorned in board rooms in the previous century are now top of the heap as far as employees are concerned. Their overall well-being is their most important issue. And who could blame them for that? Workers want to be respected, and they want to be certain that their employers have their best interests at heart and that the commitment will be sustained.
I believe that boards, directors, and people and culture executives actually have an exciting time ahead, as we lead the march along this untrodden road. We are creating new conventions for business, where human beings are truly the number one priority. The objective is altruistic and inspirational; it’s arguably the most significant fundamental change in corporate life in decades. We should feel honored to be helping to usher in this new age of putting people first.
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