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Why workforce sustainability has become a board-level financial metric

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By illuminem briefings 🌎

· 2 min read


illuminem summarizes for you the essential news of the day. Read the full piece on The European Sting or enjoy below:

🗞️ Driving the news: Workforce sustainability, the capacity of employees to consistently deliver value amid workplace uncertainties, is now a critical financial metric for companies
Recent studies, including one from Oxford University, demonstrate that employee well-being strongly correlates with financial and stock performance, prompting Wall Street to adjust corporate sustainability metrics to include employee well-being assessments

🔭 The context: Workforce sustainability has emerged as a key indicator of a company's long-term performance
Psychological well-being is a vital component of this, influencing not only individual performance but also the overall financial health of an organization

🌍 Why it matters for the planet: The focus on workforce sustainability underscores the shift towards a holistic approach to corporate success, where employee well-being is integral
This shift impacts not just business performance but also contributes to a more sustainable and mentally healthy society

⏭️ What's next: The role of the Chief Human Resources Officer (CHRO) is becoming crucial in monitoring and improving workforce sustainability
Companies are expected to integrate well-being metrics into management dashboards and board reports, fostering a culture where employee mental health is a priority

💬 One quote: "Workforce sustainability is the ability of an employee base to deliver value year after year through all of the uncertainty and constant change that characterizes the modern workplace," (Ewan Thomson and Alexi Robichaux)

📈 One stat: Eighty-four percent of C-suite executives agree that employee health is influenced by executive well-being, yet only 16% of workers observe this transparency from their leaders

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