Pressure on CEOs to Prioritise ‘Human Sustainability’

The report by Deloitte and research firm Workplace Intelligence has revealed that a significant majority of CEOs are experiencing increasing pressure from various stakeholders to prioritise human sustainability within their organisations. Human sustainability encompasses an organisation’s efforts to enhance employees’ health and well-being, skill development, equity, and sense of purpose.

The survey, now in its third year, highlights that approximately 80% of top executives feel compelled by employees, customers, investors, partners, and board members to publicly commit to improving human sustainability. This rising demand reflects a broader trend where corporate responsibility and the well-being of employees are becoming critical concerns for all stakeholders.

Despite the pressure, many leaders appear to welcome the challenge. An overwhelming 88% of CEOs expressed willingness to link their compensation to human sustainability metrics. Furthermore, 71% believe that their company’s leadership should be replaced if it fails to advance human sustainability initiatives. A notable 73% also agree that human sustainability poses an enterprise risk that warrants rigorous measurement and monitoring.

The report, titled “The Important Role of Leaders in Advancing Human Sustainability,” suggests that there are tangible long-term benefits for organisations that invest in human sustainability. However, it also underscores a significant disconnect between executives’ perceptions and the actual experiences of their employees. While 82% of executives believe their firms are progressing towards better human sustainability, only 56% of employees agree.

A more pointed discrepancy emerges around workforce well-being. Executives predominantly perceive the effect of working for their company as positive, particularly regarding employee well-being, skill development, career advancement, inclusion, and a sense of purpose. In contrast, fewer than 60% of workers share this sentiment.

Areas for improvement

Just 34% of employees report improvements in their physical well-being over the past year, and only 32% and 31% noted enhancements in their mental and social well-being, respectively. These figures stand in stark contrast to executives’ perceptions, where at least 70% believed that these dimensions had improved for their staff.

Also, a substantial portion of the workforce (70%) feel that increased commitment to human sustainability would enhance their overall work experience, engagement, job satisfaction, and productivity.

Trust in leadership is another critical area, with 69% of employees stating that a greater emphasis on human sustainability would elevate their trust in company leadership.

Despite recognising the importance of these issues, 81% of executives admit their organisations are not doing enough to pledge improvement in human sustainability. One-third cite the triviality of achievable goals as a reason for their reluctance to make public commitments.

Moving ahead

A significant proportion of executives (88%) advocate for transparency in human sustainability metrics, endorsing the idea that companies should be required to report these publicly. Interestingly, almost half of the surveyed executives expressed a desire for at least 75% of their compensation to be tied to such metrics, indicating a serious commitment to these goals. Additionally, 61% indicated they would accept a pay cut to work at a company that is actively advancing human sustainability.

Dan Schawbel, Managing Partner at Workplace Intelligence, commented, “This disconnect between executives and employees should serve as a call to action for leaders who are committed to enhancing human sustainability within their organisations.”

Paul Silverglate, U.S. Executive Accelerators Leader and Vice Chair of Deloitte’s US Technology Sector, added, “Embracing human sustainability can yield benefits for both businesses and people. Today’s leaders have an opportunity to prioritise it at the highest levels, making their organisations more rewarding and productive places to work.”

Jen Fisher, a retired Managing Director at Deloitte US, also stressed the need for a shift in perspective. “Leaders should move away from a legacy mindset centered on extracting value from people and instead embrace the concept of human sustainability. This can support the long-term collective well-being of individuals, organisations, and society.”

The research findings are based on a survey conducted among 3,150 employees, managers, and C-level executives across the U.S., U.K., Canada, and Australia from February to March 2024.

The growing recognition of human sustainability reflects a broader trend where corporate success is increasingly measured not just by financial performance but by the impact on the broader human ecosystem. As companies navigate these expectations, the role of leadership in fostering an environment that prioritises well-being and purpose becomes ever more critical.