Labor Volatility

Look, I’m going to cut through the noise. We discuss market disruption, AI, and digital transformation—and yes, those topics matter. They’re the engine. But what’s the fuel? It’s your people. And right now, a lot of you are running on empty. You’re focusing on the quarterly numbers, the software stack, the next big marketing push. That’s fine. That’s business. But you’re missing the silent, destructive financial killer lurking in your organizational chart: Gartner forecasts that by 2025, 40% of organizations will report a material business loss due to labor inconsistency and instability.[1] Think about that. This isn't just "high turnover" or "a tough hiring market." This is a material financial loss. It means the cost of replacing talent, the drop in productivity during the gap, the institutional knowledge that walks out with your top performer, and the drain on your remaining team is hitting your P&L statement like a wrecking ball. This is real money, gone.

You’re looking at your investment in people through the lens of cost reduction. You see a higher salary, a better benefits package, or a well-being program, and you crunch the ROI. Can we afford this? The visionary question is not, "Can we afford to keep them?" The visionary question is, "Can we afford to lose them?" When a key employee leaves, they’re not just taking a salary with them; they’re taking the momentum. They’re taking a piece of the magic. And that’s something you can't put a price tag on—until it’s gone. You spend time and money hunting for the replacement, training them, and bringing them up to speed. That lag is the material loss Gartner is talking about. It’s a loss of speed. A loss of focus. A loss of excellence.

Al-Dabbagh Group, a major global investment company, had a strong belief in its internal philosophy which prioritizes people over profit. However, they faced a crucial challenge: how could they prove this culture was working well and consistently across all 22 countries they operate in? They needed a reliable way to measure things like employee happiness, engagement, and diversity to make sure their people-first commitment was actually being felt by every one of their 25,500 employees.Their goal was to move beyond simply having a good philosophy to having a globally recognized, high-impact culture.To solve this, the company chose to partner with Great Place To Work® and use their Trust Index™ Survey as a core annual business tool. This meant that every employee globally was invited to share their honest feedback, making the measurement data reliable and extensive. The most critical part of this strategy was accountability: every quarter, leaders from their subsidiary companies had to present their survey results and specific action plans to the Chairman and the executive team. By doing this, they made improving the culture a top-level business priority, not just an HR task. The data gathered led to significant, real-world changes across the organization. They introduced a comprehensive Wellbeing Framework that offered support in five areas, including financial assistance and community programs, showing they cared about the whole person, not just their job performance. The surveys also highlighted the need for more inclusion, resulting in a new policy that helped boost their gender diversity from 18% to 30% in just three years. Furthermore, they launched training programs and even had the Chairman conduct personal "head-to-head" meetings with employees to make sure every voice was heard.These deliberate actions quickly translated into impressive results. Employee pride and loyalty soared, with the group achieving a remarkable 99% Colleague Pride Score.Their custom-built internal culture score also rose to an excellent 89%. This internal success was confirmed externally by being ranked the #1 Best Workplace in Saudi Arabia and earning top spots in several other countries. Al-Dabbagh's case proves that when a business commits to measuring and investing in its people with the same rigor it applies to its finances, it achieves both cultural excellence and global recognition.[2]

We are entering a new phase of work where the traditional contracts—show up, do the work, get a paycheck—are broken. The most ambitious, talented people don’t want a job; they want a mission. They want a culture that respects their time, their health, and their contribution. Organizations are realizing that metrics like well-being, burnout rate, and brand satisfaction are overriding old-school ROI evaluations in successful growth decisions. You have to care about the human, not just the resource. The push for flexibility is no longer a perk; it’s a non-negotiable expectation. Businesses that struggle with labor consistency are often the ones trying to force 20th-century attendance models onto 21st-century workers. Stop dictating where or when and start defining what and why. Employees don't quit companies; they quit managers. The trend is to invest heavily in manager enablement—equipping leaders to be coaches, mentors, and empathetic communicators who can reduce team-level friction before it becomes organizational attrition.

The future-proof business owner doesn't mitigate labor volatility with higher wages alone—they mitigate it with culture. A market leader's company isn't just a place to work; it's a human firewall against volatility. Their mission is clear, and everyone knows why they are doing what they are doing. This clarity of purpose is a motivator no bonus can match. Trust is the default because they empower their people with the tools and the autonomy to do their best work. You trust them until they give you a reason not to. The best stay because they get better. Their investment in digital dexterity enablement—training, upskilling, and providing access to the latest AI tools—means their employees are always growing. They see their company as the best place to accelerate their own careers. Stop focusing on the cost of the firewall. Start focusing on the value of the castle you are protecting. The talent is there. The technology is there. The only thing missing is the courage to rebuild your culture around the human being.

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