Employee wellbeing is a ‘major priority’ for high-performing company chief executives, confirmed IBM’s latest Institute for Business Value (IBV) study.
Around 77% of high-performing company CEOs report they plan to prioritise employee wellbeing, even if it hurts short-term profitability, compared to 39% of underperformers; reflecting that leaders of outperforming organisations are heavily focused on ‘people issues’ right now.
Leaders of outperforming organisations – those in the top 20% for revenue growth – are prioritising talent, technology and partnerships to position their companies for success post-pandemic. Additionally, the majority of CEOs surveyed reported empowering a remote workforce was their top priority during 2020.
‘ANYWHERE’ WORKFORCE CHALLENGES
The IBV study also revealed that the top challenge for many surveyed CEOs over the next few years is managing an ‘anywhere’ workforce. Half of outperforming company CEOs said managing a remote ‘anywhere’ workforce is a top leadership challenge over the next few years; compared to just 25% of underperformers (companies in the bottom 20% for revenue growth).
“The Covid-19 pandemic challenged many leaders to focus on what’s essential; like their people,” commented Mark Foster, Senior Vice President of IBM Services. “Many employees’ expectations of their employers have significantly changed. The ‘anywhere’ workforce can require leaders to provide agile technology, to adopt more empathetic leadership models that prioritize employee well-being and to champion flexible and inclusive cultures.”
IBM’s study recommends that leaders consider carefully the longer-term challenge of a hybrid work environment. This can include things like providing employees with digital, cloud-enabled tools for collaboration; preventing employee burnout; or sustaining company culture with focus on diversity and inclusion. In a related IBV survey of more than 14,000 global consumers, one in four employees surveyed reported they are planning to change employers in 2021; citing the need for a more flexible work schedule or location as a top reason why. Interestlingly, only 17% of CEOs surveyed ranked diversity and inclusion among the most important organisational attributes for engaging employees.
TECHNOLOGY & PARTNERSHIPS
The IBV study also revealed that the majority of chief executives see technological factors among the most important external forces that will affect their business in the next few years, following the massive disruptions of 2020. Across the board, surveyed CEOs said Cloud, AI and IoT were the top technologies that they believe can deliver benefits for their business. Outperforming-company bosses said technology foundations were the top challenge at double the rate of underperformers.
Outperforming company CEOs are also more focused on partnerships, according to the IBV study. Around 63% of outperforming CEOs said partnerships have become more important for driving business performance; while only about half as many underperformers said the same. Based on the results of this study, IBM concludes that outperforming company CEOs are narrowing their focus to what they do best and relying on partners and ecosystems for access to broader ideas and innovation opportunities.
In addition, IBM notes that as many leaders increasingly see how their organisations can help address interconnected global issues like climate change, ecosystems may be able to play a pivotal role in driving lasting change. The IBV study includes recommendations on how leaders can seize this moment to reset and focus on what may be essential for success; choosing flexible and scalable technology platforms like an open hybrid cloud, investing in the holistic well-being of their people, and partnering to win with an open innovation approach.
The study polled 3,000 CEOs across 26 industries and nearly 50 countries in association with Oxford Economics. Click here for more information.
Talent retention is another ‘top priority’ for CEOs in 2021. Click here to read more.
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