Three Ways to Make Business Better in 2023

Durham University Business School is a Business Reporter client.

After almost two years of pandemic restrictions, 2022 proved pivotal in reopening the world and restructuring how we live and work. Organizations were tasked not just with deciding whether to go back to their traditional pre-pandemic ways of working, or to continue to allow flexibility, but also with considering their commitments to prioritizing people and the planet, as well as profit.

What has become clear is that the future of business must work for everyone—not just those at the top of their industries. And there has definitely been a shift in attitude: More organizations are offering greater flexibility in staff working arrangements, others are taking action to reduce their environmental impact and many are taking proactive steps forward in their diversity and inclusion strategies.

But not all organizations have been as progressive in their decision-making, and examples of bad practice abound.

How can we encourage better behavior? There are some fantastic examples of companies that are getting it right, and we must learn from these, as well as from academic research, which is an invaluable resource in guiding business decision-making and identifying new, more responsible practices, backed by robust data and insight.

As we enter 2023, here are three suggestions, based on academic research, that can build a better business future for all:

Personalize flexible working policies

We’ve seen plenty of companies switch to a blanket policy, such as two days in the office and three days at home or vice versa, but there is more that employers can do to support the work-life balance and mental health of employees. Your people are your greatest asset, and ensuring that they have the right tools and mindset to work to the best of their ability, and are happy to do so, is key. Gestures such as offering a set rota schedule for working from home are not as flexible as they may initially seem.

The Covid pandemic highlighted the need to protect employee mental health, and research from Roger Gill, a visiting professor at Durham University Business School, shows how tailoring flexibility to suit individual workers’ needs can benefit everyone. Switching from traveling to the office every day to a more flexible arrangement during the pandemic improved the mental health of many workers—especially those who those who previously faced long or expensive commutes—and boosted their work commitment. For others, maintaining a greater connection to colleagues and managers was essential to their well-being.

A one-size-fits-all policy risks suiting no one at all. Business leaders must understand how employees’ individual differences and resources may impact their work-related well-being, and HR policies on flexible working must be personal and adaptable, not rigid and universal.

Focus on inclusivity, not just diversity

Diversity will continue to be a buzzword in 2023, but unfortunately, for some companies, it will remain little more than that. Simply hiring diverse people is not enough to support a DEI narrative, and does not that ensure that staff will feel included or accepted in the organization or that their perspectives will be heard. In fact, often, corporate diversity lacks inclusion, making these vitally important voices feel even more “othered.”

Research I conducted with my Durham University colleague, professor Jackie Ford, together with professors Kathryn Watson from Leeds University Business School and Juliet Kele from Newcastle Business School, found that if DEI policies are not partnered with inclusive cultures, they can actually have the adverse effect of alienating employees.

How can employers make sure their organizations are more inclusive in their working practices in 2023?

It’s a hard balance to strike between cultivating practices that effectively support underrepresented staff while also making all employees feel that they are a priority. The trick is to consult all your staff on your inclusion efforts to gain an honest view of the company, to understand which measures might work best and to encourage engagement.

Make sustainability a legal duty, not just a moral one

If we are to truly reverse the drastic effects of climate change, many of which have been caused by previous bad business practices, we need to act. It’s simply not enough to switch to energy-saving lightbulbs, or turn the heating down in the office; in 2023, we must go beyond such minimal commitments. We simply cannot let organizations get away with soundbites or greenwashing initiatives that distract from bad practices.

If the moral case for doing so is not enough to encourage some organizations to go green, hopefully the impact that climate change is having on businesses, and their profits, will be. Research by Durham University Business School professor Guanming He found that the decision-making abilities of companies based in highly polluted areas were negatively impacted when it came to investing, showing a business case for improving air quality.

Organizations should also be conscious of the attitudes of the companies they collaborate with. By including sustainability targets in senior management contracts, and supplier and building contracts, organizations can place sustainability at the heart of their work, and also enforce a legal duty for others to align.

What we know for sure is that we are running out of time to act. We must ensure that 2023 is the year our organizations take practical steps to truly make employees and the planet the most important stakeholders of business.

Cathy Cassell is Executive Dean of Durham University Business School and a professor of organizational psychology, and holds fellowships with the Academy of Social Sciences, the British Academy of Management and the Chartered Institute of Personnel and Development.

Durham University Business School, based in the UK, is an internationally focused triple-accredited school that works collaboratively with academic partners and businesses globally to deliver high-impact research and executive business education.

To find out more, please visit durham.ac.uk/business.

This article originally appeared in Business Reporter.

Image: iStock id1202906898