Human Capital Trends 2018
Presenting the Namibian Human Capital Trends report for Namibia at the awards ceremony, Ms Priscilla Husselmann highlighted the top two most pressing human capital issues facing businesses today. Scoring highest on the scale of importance at 88% is a company’s image as a good corporate citizen and the social impact it has on its employees and society; on par with this is the harmonious cooperation, or lack thereof, amongst top executives also referred to as the C-suite.
Stakeholders today are taking an intense look at organizations’ impact on society, and their expectations for good corporate citizenship are rising. In an effort to meet these expectations, leading organizations are making citizenship a core part of their strategy and identity. It is no longer simply about a corporate social responsibility (CSR) program, a marketing initiative, or a program led by the chief human resources officer. It is now a CEO-level business strategy—defining the organization’s very identity. The social enterprise must evaluate its actions based on its impact on society, not just the bottom line. As stakeholder expectations rise, an inauthentic or uneven commitment to citizenship can quickly damage a company’s reputation, undermine its sales, and limit its ability to attract talent. For organizations, a new question is becoming vital: When we look in the mirror held up by society, do we like what we see?
Simply referred to as the “symphonic c-suites”, this human capital trend scored the highest in terms of unpreparedness in the corporate world at 66%. As the business environment becomes more competitive and digital disruption continues, organizations have become more team-centric, networked, and agile. While these approaches are taking hold in sales, operations, and other functional areas, a big problem remains: The C-suite must change as well. Senior leaders can’t afford to work in silos in today’s complex, dynamic business environment. The goal is to act as a symphony of experts playing in harmony—instead of a cacophony of experts who sound great alone, but not together.
Other human capital trends scoring high in importance include a movement towards a more personalised reward system and ensuring the holistic well-being of employees. For decades, designing rewards programs was a relatively straightforward exercise of finding the right mix of compensation and traditional benefits such as health insurance and vacation time. Those days are over. Leading organizations now understand that a personalized, agile, holistic rewards system is essential to attracting, motivating, and developing talent. In terms of employee wellness, many companies are putting in place innovative programs to ensure the holistic wellness of employees.
As the line between work and life blurs, providing a robust suite of well-being programs focused on physical, mental, financial, and spiritual health is becoming a corporate responsibility and a strategy to drive employee productivity, engagement, and retention.