This update of a popular corporate finance textbook reinforces the role strategies like work flexibility will play in the operational, cultural, and financial success of organizations:
“We’ve devoted an entire new chapter to Responsible Business. But, it’s not just something pigeon-holed into a single chapter; it pervades the book. Out of the five principles that governed prior editions, we’ve rewritten #2 to stress that managers consider ‘the long-term consequences of all decisions, including their effects on stakeholders such as customers, employees, and the environment’.”
Specifically, this update aligns with the growing focus of institutional investors on ESG and human-capital metrics, all of which are directly impacted in some way by flexibility in how, when, and where work is done, including: (source: https://lnkd.in/gKp64FQ2):
–Workforce demographics (number of full-time and part-time workers, number of contingent workers, policies on and use of subcontracting and outsourcing)
–Workforce stability (turnover (voluntary and involuntary), internal hire rate)
–Workforce composition (diversity, pay equity policies/audits/ratios)
–Workforce skills and capabilities (training, alignment with business strategy, skills gaps)
–Workforce culture and empowerment (employee engagement, union representation, work-life initiatives)
–Workforce health and safety (work-related injuries and fatalities, lost day rate)
–Workforce productivity (return on cost of workforce, profit/revenue per full-time employee)
–Workforce compensation and incentives (bonus metrics used for employees below the named executive officer level, measures to counterbalance risks created by incentives).
Is your organization ready?