How Mindset Shifts Support CEOs' Focus on Workforce and Sustainability
Research shows that mindset shifts are a key contributor to the success of CEOs’ increased focus on sustainability and workforce challenges.
Findings from Gartner Research underscore that workforce management and sustainability have surged to the forefront of CEOs' concerns. As societal developments continually reshape the corporate landscape, CEOs are adjusting their strategies accordingly, effectively charting a new course for business leadership.
As evidenced by several studies and case studies, shifting the mindset of employees may be vital to achieving success and turning strategy into real-world, positive change – something McKinsey research underscores can be highly challenging.
Gartner study shows shifting priorities
The Gartner research study, which included over 400 senior business leaders, unveils an intriguing narrative about the C-suite's evolving operations and priorities. Notably, people and purpose are emerging as significant elements, along with pricing and productivity. This change in leadership emphasis, not witnessed in over a decade, indicates an enduring transformation in the CEO mindset.
Interestingly, growth, while remaining the most frequently mentioned priority (51%), has recently declined. Gartner's analysis links this decrease to the ripple effects of supply chain disruptions. Confronted with supply-related challenges, CEOs are perhaps less eager to fuel demand aggressively.
Simultaneously, technology-related concerns, such as digitalisation, e-commerce, and cybersecurity, are gaining prominence. With the pandemic spotlighting the crucial role of digital platforms, CEOs have come to appreciate the importance of remote work and e-commerce. Now, they are ready to sustain and augment their emphasis on technological strategies.
Talent retention, DEI, and sustainability in the top ten
Among the top ten priorities, workforce issues—including talent retention, hiring, diversity, equity, and inclusion (DEI)—have risen significantly for the second year in succession (31%). This emphasis on workforce concerns has superseded financial considerations and various corporate initiatives, such as mergers and acquisitions, strategy change, and restructuring. As the survey periods progressed, workforce worries escalated substantially, with resignations perceived as a major issue by 48% of respondents in the final quarter of 2021, a substantial rise from 34% in the previous quarter.
For the first time, environmental issues have broken into the top ten, reflecting the growing emphasis on sustainable business practices, signifying a substantial surge in interest in this area. Business leaders now face increased pressure from stakeholders, including customers, investors, regulators, and employees, to ramp up their environmental sustainability efforts. This focus on sustainability is increasingly seen as an opportunity to bolster business efficiency and revenue growth.
Post-pandemic changes here to stay?
Post-pandemic, CEOs identify employees' desire for remote and hybrid work as the most significant behavioural shift. Cultural adaptation and productivity maintenance emerge as the chief concern. Coupled with societal trends surrounding DEI, these new realities have propelled workforce issues. Attracting and retaining talent has emerged as the primary concern within the workforce domain, with 15% of senior executives citing it as one of their top three concerns, up from 8% the previous year.
Although the study data presented is from 2022, and certain factors may have evolved since, it is clear that workforce management and sustainability continue to be focal points for corporate leaders. The dynamic business environment requires a flexible approach that enables companies to respond optimally to shifts and emerging trends.
Mindset shifts core to effective change
Businesses must respond promptly and positively to these evolving trends amid these developments. An agile approach and a committed and proficient workforce are vital. This strategy aligns the organisation with the changing business environment and encourages employees to play an active part in its evolution, fostering a culture of participation and ownership.
This adaptability is intimately linked to the mindset and skills within the workforce. For example, a strategic focus on sustainability will struggle to translate into actual change without buy-in from the people in charge of turning strategy into action – your employees. With that in mind, a deeply embedded sustainability mindset that engenders a sense of ownership and active participation in environmental initiatives is crucial for success. Furthermore, such a mindset and focus have shown significant positive effects on companies’ capacity to attract and retain talent, as workers are increasingly focused on a company’s values and positive societal impacts.
Ultimately, it's evident that CEOs' expectations are shifting to align with societal and economic changes. Companies must anticipate these shifts and effectively equip their workforce to navigate them, ensuring sustainable growth and success in an ever-evolving market.
