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Key takeaways from The People Factor: How Investing in Employees Pays Off

New research shows there can be a payoff for employers that back up employee-centric talk with investments in their workforce, but it requires a thoughtful approach that includes effective communication to investors and multiple investment levers.

In this video, Tara Perkins, Managing Director & Head of Global Public Affairs, Global Leadership Team, CPP Investments; Allen He, Research Director, FCLTGlobal; and Witold “Vit” Henisz, Vice Dean & Faculty Director, the ESG Initiative at the Wharton School of the University of Pennsylvania, discuss key findings and actionable takeaways from The People Factor: How Investing in Employees Pays Off. That report is the result of a joint research project undertaken by the three organizations.

Tara points out in the conversation that the paper “makes the case” for how investors should look at investment in employees with the same long-term mindset that’s applied to research and development or capital expenditures.

Allen highlights that employers will only enjoy the fullest payoff when they take a sum-of-the-parts approach to investing in employees. As he says, in reference to increasing wages; enhancing benefits; offering stock and improving Diversity, Equity & Inclusion in the workplace: “It’s the whole package.”

And Vit underscores that “it’s not enough just to be a quiet doer.” In other words, the research shows it is employers that communicate and demonstrate a commitment to investing in employees that are associated with stronger business outcomes.

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New research shows there can be a payoff for employers that back up employee-centric talk with investments in their workforce, but it requires a thoughtful approach that includes effective communication to investors and multiple investment levers. In this video, Tara Perkins, Managing Director & Head of Global Public Affairs, Global Leadership Team, CPP Investments; Allen He, Research Director, FCLTGlobal; and Witold "Vit" Henisz, Vice Dean & Faculty Director, the ESG Initiative at the Wharton School of the University of Pennsylvania, discuss key findings and actionable takeaways from The People Factor: How Investing in Employees Pays Off. That report is the result of a joint research project undertaken by the three organizations. Tara points out in the conversation that the paper "makes the case" for how investors should look at investment in employees with the same long-term mindset that's applied to research and development or capital expenditures. Allen highlights that employers will only enjoy the fullest payoff when they take a sum-of-the-parts approach to investing in employees. As he says, in reference to increasing wages; enhancing benefits; offering stock and improving Diversity, Equity & Inclusion in the workplace: "It's the whole package." And Vit underscores that "it's not enough just to be a quiet doer." In other words, the research shows it is employers that communicate and demonstrate a commitment to investing in employees that are associated with stronger business outcomes. Thanks for subscribing to CPP Investments Sign up for our latest news, insights, reports and other information about CPP Investments Email address * Please enter valid email id Job title Select Job Title Associate Analyst Consultant advisor Manager/supervisor Government official/regulator General manager/director Board director Chairman/board member VP/SVP/EVP President Partner/Owner/Entrepreneur Parent/guardian C-level other Chief Human Resources Officer Chief Marketing Officer Chief Financial Officer Chief Sustainability Officer Chief Digital Officer Chief Technology Officer Chief Operating Officer Educator/professor Student Editor/reporter Other Organization How did you hear about CPP Investments? Select Source CPP Investments alumni CPP Investments employee or board member CPP Investments portfolio company Online search (e.g. Google) Social media Other What news would you like to receive? * News and updates from CPP Investments Latest news from the Insights Institute Consent * By checking here, you are subscribing to receive our newsletters and other similar types of insights and reports by email, and permit CPP Investments to use cookies and similar technologies to analyze your interactions with our emails. Unsubscribe at any time by clicking the link in the newsletter’s footer. Visit our Privacy Policy for more information. Questions or concerns? Contact us. An error has occurred. Please try again later. Next Our Expertise CPP Investments’ global perspectives Experts from around the world discuss their outlook and investing opportunities in a series of Q&As. Article • March 3, 2023 Our Expertise Q&A with our Managing Director of Equity, Diversity & Inclusion As Karen points out, leaders are seeing the importance of fairness, culture and diversity as part of the ecosystem of running their Article • March 3, 2023 CEO Perspective CPP Investments joins top investors at the Bloomberg New Economy Forum We’re actively investing in the whole economy transition. President & CEO John Graham speaks here about the opportunities ahead. Article • November 16, 2022
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