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Companies are under intense pressure to make progress on identified social metrics but overstating a company’s achievements in this area can lead to significant legal liability and reputational harm.

This leads to employees disengaging and leaving the company.; Employees want to know three things: they receive fair evaluations; their pay is reasonable; and they can trust their managers.

The broader definition of “restatement” leads WTW to expect an increase in overall enforcement of clawbacks, which illuminates the importance for boards to ensure proper documentation/minutes going forward.

., which experts and data suggests will lead to increased pay equity over time.

“Leaders need to be able to lead and have the courage to have the difficult conversations to address performance,” Peitersen said.

But the experts interviewed for this article warned it could lead to higher organizational costs such as diminished employee engagement, increased turnover and employer brand damage.

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While this poses obstacles for businesses in the form of reduced productivity and creativity that ultimately affect overall employee performance, it can also lead to increased absenteeism and higher healthcare expenses.

Focusing too much on tactics and not enough on communication can lead to inconsistency in how recognition is delivered, Schulz noted.

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