Home Business Fink (BlackRock) to CEOs: the world of work has changed, value employees

Fink (BlackRock) to CEOs: the world of work has changed, value employees

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In the usual start of year letter to the CEOs Larry Fink, CEO of Blackrock, spoke on the issue of employee remuneration.

Fink: With low wages, people no longer work

“No relationship has undergone more changes due to the pandemic than that between employers and employees. In the US and UK, the layoff rate is at an all-time high. And in the United States we are witnessing one of the higher wage growth in recent decades.

It is good that workers are seizing these new opportunities: it demonstrates their confidence in economic growth. If, on the one hand, the turnover of the workforce and the increase in wages are not a cross-sectional trait of every region or sector, worldwide employees are demanding more from their employers, including more flexibility and more meaningful jobsAnd”.

Thus Larry Fink, number one of BlackRock, the largest global asset manager, with over 10 trillion dollars under management, in the last letter to investors, or rather to the CEOs, in which he emphasizes the need for more responsible capitalism. Eight pages in which one of the most powerful men in the world, among other things, urges companies to review relations with workers.

“While the exit from the pandemic is a chance for companies to rebuild, CEOs are faced with a radically different paradigm from what we were used to. Normally, employees went to the office five days a week. There was rarely any talk of mental health in the workplace, and the wages of low- and middle-income workers barely rose. That world no longer exists “.

Fink defines the greater demands from workers towards their employers as “an essential trait of effective capitalism. Promote prosperity and create a more competitive climate for talents, pushing companies to create better and more innovative environments for their employees – actions which, in turn, will help them generate greater profits for shareholders. Companies that act in this way are already reaping the rewards of what is sown. Our research shows that companies that have strong links with their employees they experienced lower levels of turnover and higher returns over the course of the pandemic.
Companies that do not adapt to this new reality, and do not follow up the requests of their employees, do so at their own risk. Workforce turnover increases expenses, lowers productivity, and erodes corporate culture and memory. CEOs need to ask themselves if they are creating an environment that helps them compete for talent. “

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But creating an environment like the one envisaged – concludes Fink – is more complex than ever, and “goes beyond the issues related to remuneration and flexibility. In addition to subverting the relationship with the physical place where we work, the pandemic has also shed light on issues such as ethnic equality, childcare and mental health, revealing the gap between generational expectations at work. These issues now take center stage for CEOs, who need to think carefully about how to use their voice for create synergies on social issues that are important to their employees. Those who show themselves humble and do not lose sight of their purpose are more likely to be able to build the kind of bond that lasts throughout an individual’s working life. “

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