In the ever-evolving realm of corporate dynamics, the beginning of a new year often marks a period of reflection and strategic planning. As we step into 2024, businesses across the globe are contemplating the resolutions that will shape their trajectory in the months ahead. However, amidst the rush to embrace change and progress, there lies a cautionary tale—certain resolutions may inadvertently lead corporations down a precarious path.
As we navigate the complex web of corporate resolutions, it’s crucial to identify the red flags that may hinder rather than propel growth. So, today, we shed light on the five resolutions corporates should not take in 2024. For, in the fast-paced corporate landscape, making informed choices is a necessity for thriving in the years to come.
Resolution: Let us prioritise profits over employee well-being and ethics.
In the corporate landscape, prioritising employee well-being and ethical conduct is not just a moral imperative but a strategic necessity for long-term success. As Sundeep Rana, co-founder, Net Set Go Media, rightly points out, “People all around the world who work care more about having a good balance between work and the rest of their lives, feeling mentally well, and having a positive and happy workplace.” Ignoring these aspects can lead to increased turnover, decreased productivity, and difficulties in attracting top talent, as emphasised by Prateek Sachdev, Managing Partner, Mobisaka Mobisaka.
Furthermore, industry experts like Deep Bajaj, Sirona Private Hygiene Limited, add that ethical lapses can result in legal troubles, damage to reputation, and a loss of customer trust. As we move into 2024, businesses must recognise the interconnectedness of employee well-being and ethical practices for sustainable growth. Companies that invest in employee welfare programs and adhere to ethical business practices foster a positive work culture and witness tangible benefits.
Research from 2023, cited by Sachdev, reveals a 15% increase in total productivity for organisations engaging in employee well-being initiatives. Conversely, overlooking these crucial aspects may lead to talent loss, increased turnover, and hindered progress.
Resolution: Diversity and inclusion has zero impact while hiring candidates. We hire on qualifications and merit.
In today’s dynamic business environment, the significance of diversity and inclusion cannot be overstated. As Rana, points out, a diverse workplace is not just a moral imperative but a catalyst for creativity, productivity, and organisational strength. He warns that, “In a time where being socially responsible is really important, not paying attention to these things can cause problems inside the company and how people see it from the outside.”
Additionally, Sachdev emphasises the tangible benefits of diversity, citing a 20% increase in innovation revenue for companies with diverse leadership teams in 2023. He explains that this is because it fosters creativity, innovation, and a better understanding of markets. Bajaj further echoes this sentiment, noting that neglecting diversity and inclusion risks stagnation and an inability to adapt to the evolving business landscape. So, embracing diversity is not just about social responsibility—it’s a key driver of business success and resilience.
Resolution: Investing in technology and cybersecurity is unimportant. We work fine.
The contemporary business environment faces increasingly sophisticated cyber threats, making it imperative for companies to prioritise the security of their computer systems. Shruti Swaroop, Founder and Managing Consultant at Embrace Consulting, says, “In the quick-paced digital age, failing to include technological advancements can restrict competitiveness.” She adds that neglecting technological advancement, especially in cybersecurity, not only hampers growth and competitiveness but also poses significant risks to data security, financial stability, and stakeholder trust. In a digitally driven world, businesses must seize the opportunities presented by technological innovation to thrive in the market and ensure enduring success.
Rana too stresses that neglecting the security aspect could lead to severe consequences such as data breaches. To navigate these challenges effectively, he advocates for regular security assessments, comprehensive employee training on online safety, and the incorporation of cutting-edge security tools. While echoing this sentiment, Sachdev underscores the tangible benefits of embracing digital transformation, citing a 25% boost in operational efficiency for companies that embraced innovation by 2023.
Resolution: Profit over sustainability.
As Bajaj rightly puts it, “Sustainability is not just a trend; it’s a necessity.” He adds that neglecting the environmental impact of operations can lead to reputational damage, regulatory issues, and alienation from the environmentally-conscious consumer base. Sachdev echoes this notion by urging corporations to prioritise sustainability amid the prevailing climate change concerns.
Things get more clear with a compelling statistic by Sachdev that highlights businesses prioritsing sustainability witnessed a remarkable 20% surge in brand loyalty in 2023, signaling a growing consumer preference for eco-friendly practices. He explains its significance by noting, “Ignoring this issue can have serious consequences for both the environment and the company's reputation.”
Resolution: Lay off to cut costs.
In the face of corporate challenges, the temptation to resort to downsizing as a universal solution is a practice that warrants careful reconsideration. As Samira Chandra Gupta, Executive Coach and Founder of Auraa Image Management & Consulting, wisely advises, there are alternative cost-cutting measures that can be explored before embracing immediate layoffs. In the pursuit of efficiency and financial optimisation, she suggests that businesses should ‘invest in retention strategies, retraining, or restructuring to retain valuable talent while streamlining costs’.
Opting for downsizing as the default solution not only risks losing skilled professionals but also affects the overall morale and productivity of the workforce. In the dynamic business landscape of 2024, a nuanced and strategic approach to problem-solving, as suggested by Gupta, ensures financial prudence and fosters a resilient and motivated workforce, laying the groundwork for sustained success.
As corporates embark on the journey into 2024, it is imperative to navigate the resolutions landscape with discernment. These insights, coupled with strategic decision-making, will pave the way for a resilient and successful corporate future, where sustainable practices and a focus on people contribute to enduring prosperity in the ever-evolving business ecosystem.