The State of Organizations 2023 - Flipbook - Page 52
Exhibit 25
There is a direct link between organizational health and financial performance.
2017–22 TSR, by organizational health, %
43
3×
Bottom quartile in
organizational
health
–17
14
Middle quartile in
organizational
health
Top quartile in
organizational
health
Source: Corporate Performance Analytics by McKinsey; Organizational Health Index by McKinsey, 50 surveys, 2017–22
workers. The revised employee value propositions
should bring to life the things that targeted worker
cohorts care about: working in a great company (the
organization’s culture, values, societal impact), being
supported by great leadership (support from caring
managers), having a great job (access to coaching,
mentorship, and learning opportunities), and
achieving great rewards (recognition for a job well
done). Business leaders can use advanced analytics
and organizational data to identify the employees at
risk of leaving and develop interventions specific to
the things that the employees care about.
Fill the gaps
To find the people with the skills that organizations
need, business leaders should think twice about
where they are looking for and the criteria that they
are using to screen candidates. As a result of the
COVID-19 crisis, many companies are shifting away
from standard hiring processes toward ones that
are faster and more candidate friendly—for instance,
reducing the time to an offer and giving candidates
the opportunity to interview with both potential
peers and potential managers. In all cases, a CEO
must ensure that equitable hiring practices are in
play. Organizational commitment to DEI should be
reflected in job descriptions; in employee training,
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The State of Organizations 2023
compensation, and benefits; and in advancement
discussions. Organizations will need to monitor and
measure representation at all levels and functions
and to develop inclusion and retention strategies for
those who are underrepresented.
Build a deep bench
With retention and short-term attraction strategies
set, CEOs, chief HR officers, and other senior leaders
will want to create a deep bench of talent to meet
organizations’ longer-term talent needs. A CEO will
need to work with others across the organization to