Building Trust To Enhance Employee Potential And Leave Your People And .

Can we be net better off in times of crisis?Now, more than ever, people are looking to theiremployer to help meet their individual “me” needs(physical, financial, employable, emotional/mental),their “me and you” needs (relational) and theircollective “we” needs (purposeful). Encouragingly,executives are starting to concur. But is it realistic tothink that while companies are struggling, they cansimultaneously be focused on elevating their people?The answer isn’t an easy one. Feeling accountable foryour people doesn’t mean that decisions related to theworkforce won’t be difficult.For instance, 87 firms in the S&P 500 announced staffreductions from early March through the end of June,with 65 of those furloughing thousands of workers.13Nevertheless, tough decisions about the workforcearen’t mutually exclusive from pursuing a Net BetterOff model.In fact, the six dimensions of this framework becomeeven more important during such periods. Forexample, many companies that had to furloughworkers ensured that benefits were extended to meetpeople’s physical needs during the crisis. A holisticmodel, such as Net Better Off, is essential to makingthe tough choices organizations are facing.11CARE TO DO BETTER“We were alreadyfacing anunparalleled timeof concern for wellbeing. There werealready significantconcerns withrespect to physical,financial, emotionalwell-being—and thecivil unrest becamea further catalystreinforcing thatchange is required.”Donna Morris, Executive VicePresident and Chief PeopleOfficer, Walmart 14

What to ask TODAY to be better off TOMORROWNET BETTER OFF DIMENSIONSKEY QUESTIONSAre we equipping people with the right adjacent skillsets to transition intoEmployable higher paying jobs and explore new roles and industries?Financial o our reward and benefit packages meet the evolving needs of ourDpeople in times of crisis and in times of abundance?How do we create a sense of belonging in virtual teams? How do weRelational ensure every voice is being heard throughout the organization?12CARE TO DO BETTERPhysical What have we learned about our peoples’ physical well-being that shouldbe adopted as best practices moving into the future?PurposefulHowdoes our purpose evolve to meet an enlightened workforce and customer? How does our purpose come to life in our communities?Emotional & Mental ow can we support the ongoing mental resilience of our people whenHthe potential trauma from the crisis may have lasting effects?

It’s about closing the gap and aligning perspectivesRelative impact of Net Better Off dimension on workers' behaviorKey:“When you look at the org chart, it’s easyto think that they all work for me. But youhave to really believe that you work forthe organization. Your job is to removeobstacles and help them achieve whatyou want them to sefulFinancialEmployableFinancialFinancialChuck Robbins, Chairman and CEO, ancialFinancialStrongerFinancial15How is the C-suite thinking about the needs of their employees?It turns out that the dimensions that organizational leadersare more committed to don’t align with what people valuemost about their employment. Based on our research beforeCOVID-19, the Emotional, Relational and Purposeful dimensionswere the strongest drivers of positive employee behavior thatbenefit the organization (see Figure 2). During the pandemic,it is not surprising that Physical needs rose in importance toworkers. However, Relational needs remained high along withEmployable and Financial needs.16“I wouldrecommendmy employer”“I trust myemployer”“I want to workfor my currentemployer fora long time”“I am fullyinspired andmotivated”“I have ahighly positiveexperienceworking formy employer”“I utilize myfull range of skills”Relative impact of Net Better Off dimension on workers' behaviorKey:WeakerModerateStrongerNote: All coefficients are statistically significant at 5% level and positively influence Net Better Off.Source: Accenture Research: Workers survey, conducted 2019Figure 2: The strongest drivers of worker behavior are attributed torelational and emotional dimensions of Net Better Off13CARE TO DO EmotionalRelationalPhysicalPurposeful

Most organizational leaders, however, were investingonly in the Employable and Financial dimensionspre-crisis. This alone will not unlock the longer-termpotential of people. As organizations seek to establishtrust and lead responsibly, meeting workers’ emotional,relational, purposeful and physical needs are also ofutmost importance, whether we’re in crisis mode or not.Workers and senior leaders also differ in their viewsabout who is responsible for ensuring that peoplebecome net better off. Accenture collected data fromboth groups before and during the crisis. Interestingly,before the pandemic began, over two-thirds (67percent) of the workers in our study strongly believedthat their employer should be responsible for helpingthem become net better off, compared with just 35percent of C-suite executives. During the crisis, thesesentiments deepened, with 78 percent of workersbelieving their employers were responsible and with 50percent of C-suite executives in sound agreement. Thecrisis helped to bring C-suite and worker perspectivescloser together (see Figure 3).Indeed, out of the many tragedies of thesecompounding crises, greater accountability forleaving people net better off is a silver lining. Andwhile these crises have brought acceleration to manyparts of organizations’ transformations, this newfoundresponsibility is likely one of the most significant thatcould enable building a better future, rather than justreturning to “normal.”14 CARE TO DO BETTERBEFORE THE CRISISWE FOUND2/3(67%)of workers stronglybelieve their employer isresponsible for helping thembecome net better off.BUT ONLY35%of CXOs agreeDURING THE CRISISWE FOUND3/4(78%)of workers stronglybelieve their employer isresponsible for helping thembecome net better off.AND NOW50%of CXOs agreeFigure 3: The pandemic has helped align C-suite executives and has nudgedthem closer to workers’ perspectives on employers’ responsibilities

“We have to really hold themirror up and look at ourselves,and what are we actually goingto do differently that will drive adifferent outcome.”Rhonda Morris, Vice Presidentand Chief Human ResourcesOfficer, Chevron1715CARE TO DO BETTER

Where to focus: “Sweet Spot” PracticesDespite C-Suite executives feeling a heightenedsense of responsibility, a significant gap persists whencompared with employees (Figure 3). This disconnectsignals a real risk that organizations will lose theiropportunity to leave people net better off along withthe associated financial rewards of doing so.In any endeavor, the sweet spot is the optimum pointor combination of factors for maximizing results.Armed with a clear understanding of Net BetterOff, we used statistical testing to sort through 20 employer practices to determine which supportedrevenue growth and people reaching their potential.Our analysis revealed that some practices skew toomuch towards the benefit of people at the expense ofbusiness performance, while other practices increasedbusiness performance at the expense of people.16 CARE TO DO BETTERWhat emerged were five practices (see Figure 4)that, when taken together, form a sweet spot forinvestment—paying dividends for both individualsand the organization. However, prior to COVID-19, only15 to 20 percent of the C-suite executives surveyed feltthat their organization was a leader at any one of thefive, despite their significant financial benefits.Additionally, while it is true that CHROs can be thearchitects of these practices, we found that they aredeveloped and championed with input from individualsthroughout the organization. Indeed, the entire C-suitemust collaborate to implement these practices andensure they remain vibrant.

PEOPLE5 SWEET SPOT PRACTICESORGANIZATIONSBecome net better off andunlock their potential1 Enable continuous learningto ensure a future-readyworkforce that can shift at scale.Improve revenue growthpotential2 Listen to what your people needat the front lines, empoweringthem with real-time data.3 Use technology to enable flexiblework arrangements and morecreative work for your workforcethat is increasingly dispersed.4 Champion workforce well-beingand equality. Safety and relationalneeds are more important than ever.5 Set and share people metrics.Take accountability for diversity andequality, and be transparent andengage in intentional conversationsthat matter to your people.Figure 4: The impact of the Sweet Spot Practices17CARE TO DO BETTERSource: Accenture Research

Sweet SpotPracticeRESULTINGWORKFORCEBEHAVIOREnable continuous learningto ensure a future-ready workforcethat can shift at scale.98% of workers wouldrecommend their employerto others.20%Listen to what your people needat the front lines, empoweringthem with real-time data.97% of workers effectivelyadapt to change.15%Use technology to enable flexiblework arrangements and morecreative work for your workforcethat is increasingly dispersed.98% are more likely to feelfulfilled in their work.20%Champion workforce well-beingand equality. Safety and relationalneeds are more important than ever.94% put significantly moreeffort into their work.17%Set and share people metrics. Takeaccountability for diversity and equality,and be transparent and engage in intentionalconversations that matter to your people.72% have a positiveexperience at work.15%PERCENTAGE OFORGANIZATIONS CLAIMINGTO LEAD IN THIS PRACTICEFigure 5: A small number of organizations focus on Sweet Spot Practices despite theassociated positive workforce behaviors and financial rewards18CARE TO DO BETTER

Taking care ofbusiness by takingcare of peopleFive Sweet Spot Practices19 CARE TO DO BETTER

Sweet Spot Practices: A deep dive01 Enable continuous learningOrganizations that lead in this practice use data analysis toanticipate future skills needs. They deconstruct and reconstructroles, determining which tasks are best suited for machines andwhich require uniquely human skills. They also use technology andinnovative methods to make people’s learning experiences moreeffective and accessible.02 Listen to what your people need at the front linesOrganizations that lead in this practice use technology to anticipate,predict and quickly respond to their people’s needs. They use twoway applications that flag trends while giving individuals a voice.This allows them to build trust by applying insights in a way thatprovides clear benefits to individuals, not just to the business. Ourresearch found that 92 percent of workers are open to the collectionof data on them and their work in exchange for an improvement intheir productivity, well-being and other benefits.1820 CARE TO DO BETTER“It’s all about technology. It’s aboutgiving people tools and dataand empowering them to makebetter decisions. It’s makingsure people have access to datawhen they need it, in a form thatallows them to make decisions.It’s about using AI and machinelearning to ultimately automatethe routine and free people todrive innovation.”Jonathan Price, Chief Finance Officer,Teck Resources

03 Use technology to enable flexible workMany businesses apply intelligent technologies to automate tasksand improve productivity. Organizations that lead in this practicedo more. They select and apply technologies that enable them toreimagine work and processes through greater human-machinecollaboration. They use technology to accelerate flexible work,freeing their people to engage in more fulfilling and innovative roles.04 Champion workforce well-being and equalityThis practice requires more than having a program that’s a“check-the-box” effort. Organizations that lead in this practicecontinually support and refine their well-being initiatives toreflect people’s changing needs. For instance, in the midst ofthe current pandemic, organizations have had to be nimbleto redesign and create initiatives to safeguard the physicaland psychological well-being of their workers. Similarly,many organizations are mobilizing to become more inclusiveplaces to work and nurturing a culture that elevates a sense ofbelonging and accelerates equality for all.21CARE TO DO BETTER“My vision is to create a highperforming, healthy companythat scales And so I’mmeasuring each of the momentsthat matter for employees. I thinkwe can use technology to geta better pulse on how peopleare feeling and help empowermanagers to respond to theirneeds.”Pat Wadors, Chief Talent Officer, ServiceNow

05 Set and share people metricsThe most equal and diverse cultures experience11 times the innovation mindset of the least equaland diverse, according to Accenture research.19Organizations that lead in this practice showcase theircommitment by ensuring people metrics are in place.There should be accountability and transparencywith regard to these metrics, and, ideally, targetsand results should be shared publicly to strengthenaccountability. In light of the ongoing social discourseregarding racial and social injustice and the fact thatindividuals identify across many different dimensions,leading organizations need to focus not only on theircommitment, but also on their actions to create aworkplace where individuals feel they belong and canbe the same person both inside and outside of work.22 CARE TO DO BETTER“Investors want to invest in companies witha moral compass, and disclosure on issueslike human capital is one way to measure thatand give investors greater context. Topicssuch as diversity, human rights, labor, safety,employee volunteerism and charitable givingare increasingly important context to highlightmaterial risks, illustrate company values andshow how a business generates results.”Vicki Villacrez, Chief Financial Officer, TDS Telecom 20

TheModern HRMindset23 CARE TO DO BETTER

Embrace. Elevate. Inspire.As our research illustrates, the CHRO and the entireHR team have never had a more important role toplay in shaping the direction of their company andinfluencing a positive social narrative by elevatingresponsible leadership practices. But to succeed inthis new era, CHROs must change the way they thinkabout their own job, championing the dimensions ofNet Better Off and the Sweet Spot Practices.Modern HR leaders are those embracing a new rolein the C-suite. They’ve moved beyond efficiency andprocess execution and see the future differently.They are creating experiences grounded in care forpeople and concern for their communities whileaccelerating the performance of the business.Modern HR leaders are enabling employees towork creatively with new technologies. They alsoconnect people results to business results andteam in boundaryless ways that cut across levelsand functions within the company. They are helpingorganizations achieve several goals simultaneously:enhancing relationships with workers based ontrust and accountability, accelerating businessperformance, and creating positive societal change.24 CARE TO DO BETTER“For years humanresources professionalshave wanted a seat atthe proverbial table.Now they have that seatin a major way. Andif you’re good, you’regoing to stand out.But if you’re not good,you’re going to standout even more. We’regoing to see this crisisas a make-or-break timefor a lot of CHROs.”Johnny C. Taylor Jr., CEO of theSociety for Human ResourceManagement 21

These goals are closely tied to thefact that Modern HR leaders feelmuch more responsible for leavingpeople net better off than theirpeers—2.3 times more responsible,in fact (see Figure 6). In our researchwe define the Modern HR leader asone who is leading in at least one ofthe five Sweet Spot Practices.Similarly, Modern HR leaders are morelikely to prioritize capabilities thatenable people to drive continuousinnovation and growth. It’s a focusthat has arguably helped to elevatethe perception and value of CHROs.For instance, in the past decade therehas been a three-fold increase in thenumber of top HR executives beingnamed to U.S. corporate boards.22Modern HR leaders are at the table tohelp guide talent strategy as much asinnovation—and in the midst of thepandemic, we are seeing that manifestmore than ever before.25 CARE TO DO BETTERKey:Modern HR LeadersHR PeersModern HR 0%FinancialEmployablePurposefulPhysicalFigure 6: Modern HR leaders feel more responsible than their peersacross all Net Better Off dimensionsRelationalEmotional & Mental

What are the hallmarks of Modern HR leaders?What positions Modern HR leaders tosucceed? We found three ways in whichthese trailblazers approach their workdifferently than their peers in otherorganizations. They exhibit a new ethos,pursue new skills and develop newcollaborations. More specifically, theyadopt a new mindset and accountabilitytoward their people, their business and thecommunities they serve.They also develop new skill sets to supportemerging roles within HR and focus onupskilling their workforce to better preparefor the future of work. And lastly, theyoperate in boundaryless ways by teamingacross the organization in order to meet theneeds of their people and achieve sharedsuccess. Less than 20 percent within ourstudy were Modern HR leaders. While asmall group, it is a vital and emerging setwho are charting a different course byputting people at the heart of all they do.The Modern HR MindsetNEW ETHOSNEW SKILLSNEW COLLABORATIONS1.1x1.4x4xmore likely to strongly believethat organizations shouldpublicly report on the well-beingof their people (65% vs. 57%)26 CARE TO DO BETTERmore likely to makesignificant investments inupskilling their people(61% vs. 43%)more likely to initiateand drive collaborationsacross their organization(39% vs. 9%)

01A new ethos of empathyModern HR leaders have adopted a profoundly differentmindset for how they approach their work. Their focushas shifted from expecting people to be worthyof their organization to making their organizationworthy of the best individuals. This shift transcendsa traditional and transactional relationship betweenpeople and their employers and engenders a higherlevel of trust. It also results in business leaders thinkingabout jobs by starting with strengthening individuals,knowing that the success of the organization startswith people.This new mindset of Modern HR is an ethos. It’s away of being, rather than a prescriptive formulafor change. It’s adopting a new north star and a newset of principles, such as leading with transparency,redesigning unjust systems to promote a cultureof equality, and collaborating across ecosystemsto keep people employed today and innovate newsolutions for tomorrow. This ethos moves ModernHR professionals beyond efficiency and executionand into strategic talent advising and architectingpractices that unleash newfound potential. It allowsM

secure without undue economic stress or worry and having equitable opportunity for future stability and advancement. Net Better Off measures si dimensions that eplain one's work potential A groundbreaking new model: Net Better Off Figure 1: Net Better Off addresses fundamental human needs 8 CARE TO DO BETTER