Deloitte’s latest report looks at the importance of building a more social enterprise to attract the right talent
Organisations in New Zealand are increasingly being judged on the basis of their relationships with their workers, customers and communities, as well as their impact on society at large, according to Deloitte partner Sonia Breeze.
Breeze said that this year’s Global Human Capital Trends report is a wake-up call for organisations to look beyond their own four walls and reimagine their broader roles in society.
“Integrating the C-suite to build a more social enterprise will be a differentiator for businesses to attract the right talent, drive customer loyalty and sustain long-term growth.”
Indeed, “The Rise of the Social Enterprise” report examines the trends shaping organisations’ human capital priorities – including rapidly evolving technology, skills gaps, workplace shifts, a more vocal and empowered workforce, and a societal call to action.
Respondents overwhelmingly point to the need for a "symphonic C-suite" — a team-based, cross-disciplinary approach for executive teams to tackle these complex issues — with 85% (83% of NZ respondents) calling this trend important or very important.
Survey results show companies where C-suite executives regularly collaborate are one-third more likely to be growing 10% more than companies whose leadership operates in siloes. Despite being necessary to advance the enterprise, 73% (77% NZ) say their executives do not regularly collaborate.
Moreover, 77% of survey respondents (79% NZ) cited citizenship as important or very important. And despite the emerging link between social impact and companies’ financial performance, only 18% of respondents (10% NZ) say citizenship is a top priority in corporate strategy.
Thirty-four percent (30% NZ) have few or poorly funded citizenship programs, and 22 percent (34% NZ) are not focused on this at all.
Breeze added that this year’s survey shows that human capital is inextricably tied to social capital in this new era.
“Empowering employees’ well-being is a strategic imperative in today’s more socially-focused enterprise and is a significant contributor to building an organisation’s social capital,” said Breeze.
Well-being now encompasses everything from health assistance and financial wellness to stress management and volunteerism. Forty-three percent of respondents (same for NZ respondents) say well-being reinforces their organisation’s mission and vision, which is essential for younger generations.
Forty-six percent (42% NZ) say that well-being programs are a critical part of their employment brand.
Other trends shaping organisations’ human capital priorities this year collectively fall under the umbrella of what is often referred to as “the future of work.” These include:
• The alternative workforce: As constituencies look to how companies treat their own employees, tackling the alternative workforce takes center stage for socially-conscious organisations. By 2020, 37% of organisations expect a growth in contractors, 23% in freelancers, and 13% in gig workers. Despite this anticipated growth, only 16% said they have an established set of policies and practices to manage this variety of worker types. It is critical to successfully implement hybrid workforce strategies because they can have a significant impact on an organisation’s employment brand and external reputation.
• Increasing automation: In the past year, organisations have become laser-focused on how automation induced job shifts will impact individuals. The Deloitte research shows that more than 4 in 10 companies believe automation will have a major impact on jobs, and 61% are now actively redesigning jobs around AI and robotics. With the deployment of AI, robotics, automation, and people analytics showing no signs of slowing down, companies are reconciling a demand for human skills and the need for increased productivity. While 72% of respondents see this area as important, only 31% feel ready to address it.
