Managing inclusively with empathy ‘critical’ for resilience

Two in five American companies believe managing inclusively with empathy is ‘critical’ to future resilience, according to a new study carried out by Mercer.

The study found that collective responsibility, diversity, flexibility and workplace wellbeing are top priorities for US workplaces in 2021. The Covid-19 pandemic, volatile economic implication, and protests against racial injustice are accelerating changes in the ways organisations are working and investing in their employees.

According to Mercer’s 2021 Global Talent Trends Study, American business leaders have shifted expectations to take a more expansive view about an organisation’s responsibilities to communities as a whole; extending success metrics beyond shareholder return and placing individual and societal wellbeing at its core.

BALANCING PROFITS WITH PURPOSE

Empathising and delivering on the needs of a broader range of stakeholders became a key trend that emerged in 2020; and is likely to persist. Many US employers stepped up in 2020 to protect jobs and pay during business closures, support caregivers and provide sick leave. As a result, two in five American companies today say managing inclusively with empathy has become more critical for future resilience.

“We’re being challenged to rethink our individual and shared responsibilities to one another, to the institutions we work for, and to the societies and environments we live in. Contributing to collective responsibility will require businesses to balance purpose with profit to evolve as businesses that are more resilient; and ultimately more profitable,” stated Mary Ann Sardone, US Talent Solutions Leader at Mercer.

SUSTAINABLE BUSINESS GOALS

According to Gregg Passin, US Executive Solutions Leader at Mercer, tying ESG goals to the business’ core value proposition and embedding ESG metrics into executive scorecards “are just two of the approaches we see US companies pursuing in 2021 to drive action”. “In fact, organisations that integrate ESG metrics into the CEO’s agenda are more likely to report high revenue growth,” he pointed out. Mercer’s research also revealed that:

• 60% of US HR leaders say their company has continued/stepped up the pace towards an ESG and multi-stakeholder business approach.
• With Covid-19 revealing that not everyone’s future is equal; 55% of companies in the US are re-examining what is most relevant to different persona groups. This signals a shift towards greater personalisation of inclusive benefits.
• The biggest opportunity in sustainability strategies? To rethink how investments such as retirement portfolios can be directed toward sustainability; something just 8% of US companies do today.

CHAMPIONING DIVERSITY & FLEXIBILITY

While advancing diversity, equity and inclusion (DE&I) is hardly a new idea, the explosion of concerns spurred by racial violence and the Black Lives Matter movement has increased the urgency for improved analytics and understanding of employee needs when redesigning the workforce. Accountability and action on improving gender, race and wealth gaps will be ‘front and centre in 2021’; and organisations in the US will invest more in DE&I analytics and insights.

“With a focus on diversity comes the need for reinventing personalised and flexible solutions at work. This requires us to rethink flexibility as a whole – flexibility in policies; practices and benefits that will enable organisations to support people in their life and careers and deliver a better overall employee experience (EX). Given the experience of remote working and the need to adjust capacity swiftly in 2020, it’s no surprise that 2021 US transformation plans are concentrated on reinventing flexibility in all its guises (48%); followed by expanding their talent and learning ecosystem (43%); and upskilling/reskilling toward critical talent pools (40%),” added Sardone.

IMPROVING WORKPLACE WELLBEING

Recent events have also increased the urgency for improved health and wellbeing benefits when redesigning the workforce. “Particularly in the US, health and wellbeing benefit offerings have become a key differentiator for companies. Virtual access to healthcare, for example, has been accelerated by Covid-19; and is no longer an afterthought with over half (56%) of US companies planning to offer more access to remote health and benefit options, compared to 47% of their global peers,” noted Kate Brown, Center for Health Innovation Leader at Mercer. 

The survey also revealed that:

• While reskilling toward critical talent pools is a priority in US transformation plans (40%), only 28% of companies are gathering information on individuals’ current skills. And fewer (9%) said they’ve implemented skills-based talent strategies.
• Nearly half (45%) of US companies say they plan to improve analytics on pay equity in the year ahead.
• 58% of US companies have set up a DE&I council or taskforce to promote inclusivity.
• There is much room for improvement. As US HR leaders map out future workforce strategies, only 16% are taking into account the impact of 2020’s transformation; or rightsizing plans on various minority groups; and just 15% are considering the pandemic’s impact on these populations.

ACCELERATING INCLUSION EFFORTS 

In order to accelerate progress on these trends, organisations will need to consider several key priorities. Namely, developing a sustainability strategy; establishing clear organisational ownership of skills; committing to diversity, equity and inclusion goals and outcomes; and making flexible working a promise and a practice, while prioritising health and wellbeing.

“Going forward, people, processes, and technology initiatives will directly support business growth. HR leaders will need to act as strategic advisors on the people impacts of tough business decisions, while at the same time address employee concerns in a compassionate and transparent manner. Leading with empathy and enabling your organisation to benefit from the wealth of diverse perspectives and ideas will make the year ahead one of productive recovery and reinvention,” concluded Sardone.

Here’s some more research confirms that trust and inclusion will become a “foundational imperative” for successful organisations in 2021. Click here to read more.