As intangible assets continue to rise in their proportion of corporate valuations, boards and senior management teams have increased their focus on and oversight of human capital management – in particular employee wellbeing – and its link to performance.
Effective boards and senior management teams create and preserve long-term value by acting as stewards of their enterprises, providing appropriate levels of wellbeing governance and oversight, knowing that healthy, engaged and financially secure employees perform more effectively and efficiently, make better decisions and drive superior results.
In today’s environment, effective leaders increasingly care about employees’ physical and mental health issues. They pay attention if employees lack access to healthcare (physical and mental), are not earning a living wage or are not saving enough for retirement. They are concerned with low levels of engagement or job satisfaction, opportunities for advancement, physical safety, respect and dignity, and fair pay.
These leaders take the following actions relative to wellbeing, corporate governance and performance:
By prioritizing and taking a multidimensional approach to employee wellbeing, effective leaders build more resilient and sustainable businesses that are positioned for future uncertainties.
A version of this article originally appeared on Forbes on November 29, 2023.
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