More than four out of five C-Suite executives agree that they need to be more accountable on human sustainability issues in their companies, and an even higher proportion want their compensation tied to human sustainability metrics, as they face increasing pressure from stakeholders and anticipate benefits from improvements in workforce well-being, yet significant gaps exist between worker and executive perceptions on companies’ commitments and progress on these issues, according to a new study released by global professional services firm Deloitte.

For the study, Deloitte’s third annual “Well-being at Work” report, Deloitte, in collaboration with independent research firm Workplace Intelligence, surveyed 3,150 C-Suite executives, managers and workers at companies across the U.S., UK, Canada and Australia, on initiatives and challenges relating to human sustainability, defined in the report as “the degree to which an organization creates value for people as human beings, leaving them with greater health and well-being, stronger skills and greater employability, good jobs, opportunities for advancement, progress toward equity, increased belonging, and heightened connection to purpose.”

The survey found that both workers and executives believe that several key issues continue to impact human sustainability at companies, with only 43% of workers reporting that their organizations have left them better off than when they started, and executives stating that their workers have been or will be affected by a wide range of trends including rapidly evolving skills needs (cited by 81% of executives), burnout (78%) and mental well-being risks (78%).

With rising human sustainability challenges, the study indicated that companies are facing a series of risks on these issues. One of the key risks highlighted by the report was retention, both at the workers and executive levels, with 59% of workers, 66% of managers, and 71% of C-suite respondents reporting that they would seriously consider taking a job with another company that would support their well-being.

The report also highlighted significant perceived benefits from improvements to human sustainability, with more than 80% of executives reporting that a stronger commitment prioritizing a positive human impact would increase their company’s ability to attract new talent (82%), appeal to customers and clients (81%), and profitability (81%). Workers also anticipate a series of benefits, with 72% reporting that an increased commitment to human sustainability at their companies would improve their overall experience at work, 71% saying that it would increase engagement and job satisfaction, as well as their desire to stay with the company long term (70%), and 70% agreeing that it would lead to greater productivity and performance.

Notably, the significant majority of C-Suite executives indicated a strong preference for working for companies focused on human sustainability issues, with around 80% reporting that they would be more likely to accept a job at a company advancing human sustainability, and 61% saying that they would even accept a pay cut to do so.

Paul Silverglate, U.S. Executive Accelerators leader and Deloitte’s US Technology Sector Vice Chair, said:

“Embracing human sustainability can have benefits for both business and people. Today’s C-suite has the opportunity to help ensure it is prioritized at the highest levels of their organizations, helping them become more rewarding and productive places to work.”

Although executives and workers appear to agree on the importance of improving human sustainability at their companies, the survey uncovered significant gaps in perception on companies’ progress and commitments in these areas. While 90% of executives, for example, reported that they believe that working for their company has a positive effect on workers in areas such as well-being, skills development, career advancement, inclusion and belonging, and a sense of purpose and meaning, only 60% of workers agreed. Similarly, 82% of executives, but only 56% of workers, reported that their companies are advancing human sustainability, and 76% of executives, compared with only 45% of workers, agreed that their companies embed human sustainability into people’s jobs.

Dan Schawbel, Managing Partner at Workplace Intelligence, said:

“It’s promising that so many of today’s leaders are willing to take ownership of human sustainability. However, some executives don’t realize that their own employees are dealing with a suboptimal work experience. The disconnects uncovered in our research should be a call to action for leaders as they embark on their mission to create greater value for all stakeholders within the broader human ecosystem.”

The report also highlighted measures that executives believe could help their organizations improve human sustainability, including increased measurement and transparency, with 82% of executives agreeing that companies should be required to publicly report human sustainability metrics, 73% saying that human sustainability is an enterprise risk that should be measured and monitored, and 75% agreeing that it should be discussed at the board level.

Executives and workers also believe that tying compensation to human outcomes would improve accountability, with 88% of C-Suite and 76% of worker respondents stating that they would prefer at least 25% of their compensation to be tied to human sustainability metrics, including nearly half (47%) of executives stating that at least 75% of their compensation should be linked to these metrics.

Jen Fisher, retired Managing Director at Deloitte US, said:

“There is an incredible momentum building for organizations to make meaningful change. But leaders should move away from a legacy mindset that centers on extracting value from people and instead embrace the concept of human sustainability, which can support the long-term, collective well-being of individuals, organizations and society.”

Click here to access the survey.