Conference Presentation, Panel
Return on People: The Link Between Human Capital, Values and Corporate Performance
- The percentage of women entering corporations as recent college graduates for CEO-level roles is projected to drop below two percent, creating significant replacement costs for departing talent.
- Over the next 20 years, corporations must adapt to the workforce as the millennial generation reaches senior positions and new generations arrive.
- Companies are expected to shift from passive recipients to active transmitters of values, though legacy firms face an "adapt or die" scenario compared to new entrants in authentic value embedding.
- Human capital is becoming increasingly critical for financial and social performance, driven by the service economy and high-tech STEM skill sets, with employees likely leaving if unable to express their "being" or fulfill personal passions.
- The "being" element is forecast to become a necessary component of the employee value proposition, alongside salary and benefits, as modern workers seek to bring their whole selves to work.
- Millennials are expected to drive a wave of broader purpose in corporate America, bringing empathy and mission-driven intent, though they may struggle to find resonance with current financial services missions.
- Future value systems will likely be demanded by the market, integrating sustainability and integrity as a backbone for stronger companies, with established firms needing to align with changing societal ethics regarding what is considered healthy or ethical.
- A new online platform launching in September will connect 27,000 employees globally to mindfulness activities and values sharing, allowing freedom to choose the pace and scope of engagement.
- Credit Suisse plans to align human capital processes with core messages of being proactive, principled, and partners, while the "Real Returns" program aims to repatriate female talent with over 80% receiving full-time offers after the 10-week returnship.
- The "New Markets" business unit at Credit Suisse is set to deepen understanding and create products for women, the black community, and the LGBT community to accelerate wealth creation.
- Social media and technology will likely enhance the discipline required to deliver on promises, as real-time public accountability means any disconnect between words and actions could quickly reduce shareholder value.
- The MBA market will shift from generalist full-time programs toward specialized and online degrees as students prioritize usable skills and cost, with graduates increasingly pursuing career paths less financially rewarding but more aligned with passion.
- Leaders will strive for crystal-clear visions to improve the odds of delivering on values, though it is not certain that every employee in a 45,000-person organization will behave according to desired values at any given moment.
- If mindsets are not aligned with vision, behavior is unlikely to change, leaving corporate values as aspirational rather than reflective of reality, and the financial services industry has not yet restored trust as the mindset component of culture likely remains unchanged.
- Over the last seven years, Arison group companies are expected to have significantly outperformed benchmarks, and the Arison group will likely continue opening mindfulness frameworks to employees.
- Organizations will need to operationalize values into compensation and incentive systems to motivate employees to share values rather than focusing solely on quantitative results.
- Credit Suisse will continue deepening understanding and creating products for women, the black community, and the LGBT community to accelerate wealth creation and gain market share within the "New Markets" business unit.