Deloitte: Today’s CEO must first and foremost be a chief talent officer
In 2021, an unprecedented 47.8 million people quit their jobs in the United States. The Great Resignation has prompted organizations across the country to redouble their efforts to attract and retain talent and build workforce-centric work experiences.
More and more CEOs understand that they can’t let talent issues run free. They must be intentionally and visibly at the forefront of efforts to empower people to help bring about change in areas that matter to them — from racial and social justice to workplace wellbeing — and ensure that line managers, leaders and managers are let down The chain takes these issues seriously and acts accordingly.
It also requires a commitment from the CEO to know the organization in all its facets, especially its culture, especially from the perspective of people at all levels – from the boardroom to the home office. This requires far more than being able to name classic KPIs. It requires finding new and more agile ways to measure and understand what employees need to make them feel supported and empowered.
Because whether we want to admit it or not, employee sentiment is the new primary KPI. It’s realities like these that lead me to a clear conclusion: today’s CEO must first and foremost be a CTO, a chief talent officer.
All of the ongoing uncertainties and turmoil – social, economic, public and personal – have accelerated not only the pace of this trend but also its nature. Traditionally, most CEOs have focused their attention on investors, strategy, boards, and the like. The concept of people was often a delegated responsibility overseen by HR. Now, those once secondary considerations take center stage: talent, culture, employee expectations, and company-employee relationships. Historically, people have only been part of the strategy. Today folks are The strategy.
What can a CEO do? In addition to gaining a thorough understanding of the dynamics of how other leading companies think about talent, strategy and the future, I see three key elements:
commit
Put talent on the front burner. Pay attention to the explicit and sometimes implicit needs of your employees. This requires your leadership team to actively listen to a variety of voices within the organization and continually realign priorities as they execute on the talent strategy. And then be ready to make changes (again) as circumstances and needs evolve and change. Above all, be willing to experiment and be vulnerable.
Vulnerability is often mistakenly associated with weakness. But being vulnerable is not a sign of weakness. On the contrary, being open and vulnerable gives us the opportunity to inspire authenticity, build meaningful relationships, and build trust in profound ways. It means being willing to admit that leadership doesn’t have ready-made answers to every question, concern, and challenge they face. And vulnerabilities can encourage innovation at all levels and enable the exchange of new ideas and practices.
Connect
Start the difficult conversations by asking questions and listening. It’s tough sometimes. You must communicate your vision of the culture clearly, and invite diverse and disparate perspectives into the discussion—regardless of race, gender, sexual orientation, and personal goals and aspirations. People look for tangible evidence that the organization they work for wants them to be successful; that it takes care of their personal and professional needs – from career development to mental health.
We must adapt to viewing the relationship between company and employees less as a tug-of-war and more as an experience that creates the best outcomes for everyone. Given all we’re learning about the Great Resignation and “quiet quitting” in what may remain a tight labor market and pipeline, it’s even more important to make people feel like the organization is a place where they can thrive and be themselves – a place where they want to stay and feel heard.
Culture
When we commit and connect, we will end up creating the right culture for our organization to drive our strategy and ultimately grow. Nothing beats culture. More than ever, our corporate cultures must focus on the workforce of the future and the future of work. Let’s challenge ourselves and our leadership teams across the organization to think about how we invest in our people.
Are we thinking about unconventional approaches in hiring and training our workforce, in relation to diversity, equity and inclusion and also in education? Do we offer people varied and hybrid work solutions to cope with the increasingly complex private and professional life? Are we meeting our employees’ expectations for predictable and flexible work arrangements? Are we creating a truly inclusive culture so that all voices are heard and respected and our employees can connect with customers and colleagues?
Finally, are we thinking about the future in monetary and non-monetary terms? In other words, are we creating new opportunities for our employees to keep them loyal to us?
Let’s remember to recognize that our employees are the root of our company’s success. Let us renew our bond with them to rebuild and renew optimism and hope even in the face of difficult times. And as CEOs, we should put them at the heart of our organization, reassuring them that their peers, from the C-suite to the home office in an unknown location, have their backs and their future in mind.
Lara Abrash is the Chair and CEO of Deloitte & Touche LLP. Deloitte is a partner of Wealth’s Most Powerful Women Summit.
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