Human Flourishing: The Hidden Balance Sheet Asset That Drives Competitive Advantage 

How boards measuring and cultivating workplace flourishing achieve stronger brand relevance, better talent retention, and clear market differentiation. 

Dear Board Members, 

We have long understood the value that great teams and cultures bring to our businesses, as well as the devastating impact their absence can have. We have entrusted the guardianship of this intangible asset to People Managers, Human Resource Managers, and Chief Impact Officers, noble professionals with diverse skill sets and priorities within our organisations. 

While it makes sense to delegate this responsibility to those who interact with teams daily, dispersing the oversight of such a precious asset was never ideal. You can’t manage what you can’t measure, so we’ve done our best with available tools and theories. 

As we compete in our markets with products and services to grow revenue, build brands and succeed, a breakthrough in thinking and science has emerged that changes the competitive landscape for all of us. 

We can now measure this once-elusive asset in all its complexity, making it tangible, understandable, and manageable for organisations and their people. We also now have the tools to enhance it, optimise its performance, and strengthen our organisations as a result. This new asset class is called Flourishing. 

When managed, flourishing becomes a powerful source of competitive advantage, creating genuine differentiation with real barriers to entry and enduring brand value. We can therefore transform flourishing into a measurable asset on our balance sheets. 

What is Flourishing? 

Harvard’s Human Flourishing Program defines flourishing as “a state in which all aspects of a person’s life are good.” In our organisations, flourishing occurs when employees experience optimal conditions across multiple dimensions: physical and mental health, social connectedness, character development, sense of purpose, and financial stability. 

This isn’t about making work comfortable, it’s about making work transformative. When people flourish, they don’t merely show up; they arrive energised, innovative, and determined to drive notable outcomes. The difference is substantial and directly impacts performance. 

As directors, we must recognise flourishing as an investment that belongs on the balance sheet, an appreciating asset that drives innovation, productivity, and market differentiation alongside traditional capital assets. 

The Science-Backed Business Case 

For our boards, the implications are significant. Organisations with high engagement and well-being have reported 21% higher profitability, while those with strong flourishing initiatives see 11% higher revenue per employee. These aren’t just correlations; they’re causal relationships that translate directly to shareholder value. 

Enter the Value of Benefit (VOB), a practical metric that quantifies the financial impact of flourishing. VOB answers “What’s the value we gain by improving conditions that let people flourish?” providing us with clear ROI for human capital investments. 

Stronger Brand Relevance 

When employees genuinely flourish, they become effective brand ambassadors. They create authentic customer experiences and innovate in ways that align naturally with our brand promise because they’re intrinsically motivated. 

The market increasingly values organisations with genuine commitments to human development. As we champion flourishing in our boardrooms, we simultaneously strengthen brand differentiation and marketplace position. 

Flourishing also provides the “S” in ESG with measurable substance, offering our boards a practical way to demonstrate social impact and stakeholder value creation. 

Better Talent Retention 

The talent equation is clear: flourishing employees stay, contribute more, and attract like-minded talent. 

When flourishing rises, turnover declines significantly. According to Gallup research, 42% of employee turnover is preventable, and replacement costs range from 50-200% of annual salary. The business case is compelling. Companies with strong flourishing cultures also experience fewer sick days and significantly higher productivity. 

Most importantly, flourishing addresses the root causes of engagement challenges rather than treating symptoms, giving our boards a strategic approach to talent optimisation at a time when 61% of employees report experiencing burnout. 

Clear Market Differentiation 

For talent, this status serves as an employer brand differentiator. Research shows 89% of workers at companies supporting well-being initiatives are more likely to recommend their organisation as a good place to work. For customers and partners, it demonstrates values alignment in an era where stakeholders demand more than shareholder returns. For investors, it provides credible evidence of forward-thinking governance. 

The window for establishing leadership in flourishing represents a significant opportunity. Early-adopting boards will set the standards and secure advantages that benefit their organisations long-term. 

Our Strategic Opportunity as Boards 

Flourishing aligns with our strategic oversight responsibilities. It strengthens risk management, enhances ESG commitments, and brings a forward-thinking perspective to governance, providing insight into future performance potential. 

The WFO’s available flourishing frameworks offer our boards comprehensive governance instruments for human capital oversight that transform isolated metrics into an integrated view of human performance potential. 

Implementation: From Theory to Practice 

As board members, we can capture this opportunity through three straightforward actions: 

• First, establish flourishing as a strategic priority with explicit board oversight alongside existing priorities. 

• Second, adopt a Flourishing Framework for measurement, providing leading indicators of organisational health that complement traditional metrics. 

• Third, encourage executive alignment by incorporating flourishing outcomes into performance expectations. What gets measured gets managed; what gets rewarded gets results. 

The Flourishing Opportunity 

The opportunity for us as board members is clear: by championing human flourishing, we can unlock significant value that benefits all stakeholders. 

Forward-thinking boards are already embracing flourishing as a strategic imperative. We’re measuring what matters, optimising what drives performance, and realising the benefits of human potential. 

The tools are ready. The standards are clear. The evidence is compelling. Our opportunity to transform human flourishing from a hidden asset to a visible competitive advantage is here. 

Join us in leading the flourishing movement and help define how new value is created in the 21st century. It’s not merely our opportunity, it’s our fiduciary responsibility to unlock this untapped source of sustainable advantage that will differentiate the market leaders from the followers in the years ahead. 

Learn more about the World Flourishing Organization here: https://worldflourishing.com/