PEOPLE SUSTAINABILITY STRATEGY

Harvard Business Review | A “Growth-at-All-Costs” Mindset Can Stall Your Company | Many organisations are stalling because they prioritise short-term gains over long-term people investment. This article reveals how focusing on human sustainability—employee well-being, development, and inclusion—can transform businesses into growth powerhouses. Learn how to avoid the burnout trap and create a thriving organisation with lasting success.

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Introduction

In today’s fast-paced business environment, growth is often prioritised above all. Sustaining business growth is more complex than ever, with only 15% of top-performing companies maintaining growth over three decades. The key differentiator? Human capital. Research shows that companies with a strong focus on employee well-being, diversity, and skill development consistently outperform their competitors. This article highlights the critical role of human sustainability in driving long-term success, outlining five questions every leader should ask before rolling out their next growth initiative. Shifting the focus from short-term gains to a people-first strategy is essential to thrive in today’s rapidly changing world.

Key Insights

• Human Capital as the Foundation of Growth: Sustainable growth hinges on the quality and engagement of employees. With a 27% CAGR and 61% market share in AI chips, Nvidia has shown that a strong employee experience drives business results. Their ranking as #2 on Glassdoor’s Best Places to Work in 2024 illustrates how top-tier companies prioritise people to sustain performance.

• Human Sustainability Drives Results: Although 76% of organisations recognise the importance of human sustainability, only 10% have robust strategies to support it. Companies focusing on well-being, skill development, and a sense of purpose enjoy more robust performance and long-term resilience. Leaders must make employee well-being central to their growth strategies to succeed in today’s competitive environment.

• Diversity Fuels Innovation and Profit: McKinsey’s research reveals that companies with diverse leadership teams are 9% more likely to outperform their peers. Diversity brings new perspectives that fuel innovation and adaptability, allowing companies to navigate challenges more effectively. Creating a truly diverse and inclusive workplace is not just a moral imperative—it’s a business advantage.

• Caring for Employees Boosts Retention and Performance: Only 24% of employees feel their organisation cares about their well-being. Yet, those who feel supported are 69% less likely to look for a new job and 71% less likely to experience burnout. Prioritising employee care builds loyalty, enhances productivity, and reduces turnover.

• Well-Being Programs Pay Off: Investing in employee mental health and well-being has a proven return on investment. Companies with high wellness scores in the S&P 500 appreciated by 235% over six years, far outpacing the broader index. In a separate study, every dollar invested in wellness programs at a Fortune 100 company yielded a $1.50 return. The evidence is clear: well-being drives both employee performance and financial success.

Recommendations

• Make People Central to Growth Strategies: Move beyond headcount planning and treat employees as strategic assets. Invest in upskilling and offering continuous learning opportunities that prepare employees for future roles. Companies like Nvidia demonstrate how a strong focus on employee growth fuels overall business success.

• Cultivate Diversity for Long-Term Success: Diverse leadership leads to better decisions and more robust financial outcomes. Establish clear DEIB goals and integrate them into your company’s culture, values, and processes. A diverse and inclusive team improves innovation and attracts top talent.

• Redefine Productivity with Well-Being in Mind: Shift the focus from extracting more from employees to optimising their potential. Create a work environment that fosters creativity, collaboration, and mental health. Employees who feel cared for perform better and stay longer, reducing turnover and increasing loyalty.

• Ask “What’s in it for All”: Align your growth initiatives with individual and collective goals. When launching new projects, leaders should balance personal benefits (WIIFM) with organisational impact (WIIFA). This approach ensures employees feel motivated by a shared purpose and are more likely to drive innovation and performance.

• Evolve Your Well-Being Metrics: Generic well-being programs no longer cut it. Customise your approach by offering tailored support that meets the unique needs of different roles and locations. Personalise mental health offerings, hybrid work policies, and wellness incentives to make a more significant impact. With mental health costs reaching $1 trillion globally, investing in well-being is a business-critical decision.

Conclusion

The future of sustainable business growth lies in human sustainability. Companies that invest in employee well-being, diversity, and development will outperform their competitors and create a workplace where people thrive. By integrating human sustainability into growth strategies, leaders can build resilient, innovative organisations that succeed in the long run. Now is the time to shift from a growth-at-all-costs mindset to one that nurtures employee and business outcomes. The path to long-term success starts with people.

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