Beyond the Bottom Line: How Soft Skills and Mental Health Shape Modern Enterprises

At the start of my career, I had a discussion with an HR director on the subject of "happiness at work". It was the beginning of the emergence of this notion within companies, and there was a lot of talk about liberated companies, flat, decentralized organizations and so on. This HRD expressed her opinion to me, which was that the company couldn't be responsible for a person's happiness. It's up to the individual to create his or her own happiness outside the company, because if a person feels unhappy in his or her life, the company won't be able to make up for it. At the time, I was radically opposed to this view. Today, I would qualify my opposition. Let me explain. Yes, of course, if a person feels deeply unhappy about personal matters and, for various personal reasons, finds it difficult to get back on track, the company can't come up with a magic formula for happiness and "cure" the person. On the other hand, we cannot deny that we spend an enormous amount of time in the workplace with our colleagues. Some people have friendship circles made up entirely of former colleagues who have become friends. We can't deny that we put an enormous amount of energy into our work, getting involved (each to his or her own degree) in our jobs and our responsibilities. It would therefore be irresponsible and unfair to say that the company does not contribute to our overall sense of happiness.

Today, I am sharing with you a McKinsey "Performance through people" study which confirms, in a certain way, that the performance of a company is directly linked to its human capital. Let's take a closer look.

The Shift in Workplace Values

The new generation entering the workforce brings with it a set of values that challenge traditional corporate paradigms. These individuals seek more than just a paycheck or a prestigious title; they yearn for a workplace that respects their well-being and offers meaningful engagement. Insights from a recent McKinsey study corroborate this shift, highlighting a collective move towards valuing personal fulfillment and mental health over conventional markers of success.

The Critical Role of Soft Skills

Soft skills, encompassing emotional intelligence, communication abilities, and leadership, have emerged as pivotal for organizational success. The McKinsey report underscores the urgent need for companies to invest in nurturing these skills, as they directly influence teamwork, innovation, and customer satisfaction. This investment in human capital is not just a moral imperative but a strategic one, vital for sustaining competitive advantage.

Mental Health and Employee Well-being

The topic of mental health, once a taboo, now demands attention in the workplace, especially in cultures where it has been historically overlooked, like in France. The neglect of employee well-being is a risk no organization can afford, as it directly impacts productivity and retention. Promoting mental health is not merely about providing support services; it's about creating an environment where employees feel valued and heard.

The Entrepreneurial Surge and Its Implications

The surge in entrepreneurship since the onset of COVID-19 reflects a profound desire for autonomy and purpose. This trend signals a broader dissatisfaction with traditional employment and underscores the importance of aligning organizational cultures with the evolving needs of the workforce. Companies must recognize this shift and adapt to prevent a drain of their most valuable asset: their people.

Challenges in Retaining Talent

The difficulty in retaining top talent is exacerbated by a failure to invest in soft skills development and a reluctance to transform organizational culture. The McKinsey study presents clear evidence that companies lagging in these areas suffer in both employee satisfaction and competitive positioning.

The Need for External Expertise

In navigating these complex challenges, companies benefit immensely from external expertise. A business team coach or change management consultant offers fresh perspectives and specialized skills, essential for driving sustainable change. Through a strategic focus on soft skills development and cultural transformation, organizations can improve team performance while aligning with their employees' values and needs. Quote from the McKinsey study : “The P+P (Performance + People) Winners described in the previous chapter achieve results not only through hiring and developing talented people but also by creating the right conditions to unleash their potential. It takes effective management, systems, and culture to turn a collection of talented individuals into a cohesive team.” Team coaching finds its full meaning in supporting teams to help them unlock their potential by highlighting their strengths and strengthening team cohesion.

Conclusion

The link between company performance and human capital development is undeniable. In the face of a changing world, investing in soft skills and mental health is not just beneficial but essential for organizational success. By embracing external expertise, companies can undertake a sustainable approach to improvement, ensuring they not only survive but thrive in the new corporate landscape.