Are Directors Accountable for Employee Wellbeing?

Following the death of a 26-year-old EY employee in India and her mother’s letter to EY; linking her death to an “overwhelming workload”, there have been renewed calls for employee wellbeing globally. Employee wellbeing and work pressure are issues that organisations cannot afford to overlook, given the swift changing of the present era and demanding work environments.

Directors, who bear the overall responsibility for a company’s governance and success, often face questions about the extent of their role in safeguarding employee wellbeing. While directors are primarily focused on strategy, profitability, and risk management, their influence on work culture and employee welfare cannot be underestimated. The question of accountability, however, remains complex and debatable.

Directors sit at the top of an organisation’s decision-making hierarchy, entrusted with ensuring that the company meets its goals while adhering to legal and ethical standards. Traditionally, their responsibilities have been seen as strategic rather than operational. However, as workplaces evolve, the boundaries of these roles are becoming less defined, with directors increasingly being called upon to foster environments that promote not only productivity but also mental and physical wellbeing.

While directors may not directly manage day-to-day operations, they have a profound impact on the policies, practices, and culture that shape the workplace environment. As a result, the issue of employee wellbeing is no longer viewed as solely the domain of human resources departments; directors are expected to set the tone for the entire organisation.

There is also a growing recognition that employee wellbeing is linked to overall business performance. Companies with healthier, happier employees tend to have lower attrition rates, reduced absenteeism, and increased productivity. As such, it is in the best interest of directors to prioritise the wellbeing of their workforce

Pressure at work can manifest in many ways, from tight deadlines and excessive workloads to poor communication and inadequate support. When employees are consistently subjected to high levels of stress, it can result in burnout, poor mental health, and lower morale. Directors have a responsibility to ensure that these conditions do not take root within their organisations. This can be achieved through a combination of policies, leadership styles, and a supportive workplace culture.

From a legal standpoint, Principle 1.16 of the Nigeria Code of Corporate Governance (NCCG 2018), stipulates that directors are required to adhere to health and safety laws, which often include provisions related to workplace stress and mental health. Others are the Labour Act (2004), Factories Act (2010), and Employee’s Compensation Act (2010) to mention a few. These laws exist to protect employees from harmful working conditions, and failure to comply with these regulations can lead to significant consequences for companies and their leadership.

Beyond legal obligations, there is also an ethical duty for directors to ensure that their employees are not subjected to undue stress or unhealthy working conditions. Modern leadership demands that directors go beyond simply meeting legal requirements; they must actively work towards creating environments where employees can thrive personally and professionally.

 

While the scope of a director’s role may seem far removed from the day-to-day wellbeing of individual employees, they can make an impact in several practical ways. The image below summarises practical steps Directors can adopt in managing employee wellbeing and work pressure

The question of whether directors are directly responsible for employee wellbeing and work pressure depends on how responsibility is defined. Directors may not always be aware of individual cases of stress or wellbeing issues, especially in large organisations where multiple layers of management exist. However, their influence over the company’s culture, policies, and practices means they are indirectly responsible for the environment in which employees work.

Setting clear priorities and expectations at the leadership level ensures that directors can significantly impact the conditions that contribute to work pressure. However, it is important to recognise that they cannot single-handedly eliminate all forms of workplace stress. A more realistic approach is to see directors as the architects of the organisational environment, responsible for creating conditions where work pressure is managed, and wellbeing is prioritised.

One of the challenges directors face is balancing the need for productivity with the desire to support employee wellbeing. In highly competitive industries, there can be intense pressure to meet targets and deliver results. However, prioritising short-term gains over long-term sustainability can backfire if it leads to burnout or high turnover.

Directors must therefore strike a balance, ensuring that their workforce is able to meet the demands of the business without sacrificing their health or wellbeing. This often requires a long-term view, recognising that investing in employee wellbeing can lead to greater loyalty, innovation, and productivity in the future.

While directors may not be directly involved in the daily management of employee wellbeing, they are certainly accountable for the environment in which employees operate. Their decisions on company policies, leadership, and culture have a significant impact on both work pressure and wellbeing. As the business world continues to change, directors must embrace their role in fostering healthier, more supportive workplaces. Employee wellbeing is not only a moral imperative but a strategic advantage in the modern corporate world.

Research & Advocacy Department,
Chartered Institute of Directors (CIoD)
28, Olawale Edun Road, (Formerly Cameron Road), Ikoyi, Lagos.

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