Companies Aren't Ready for NR-1 Rules, Says Scavarda

Luiz Scavarda, CEO and Partner at Human SA, discussed the impact of Regulatory Standard 1 (NR-1) on corporate operations and the critical need for psychological safety in the workplace during a conversation with Bruno Gimenes on Marketing - The Podcast. The discussion was part of an episode dedicated to organizational culture and people management.

Historically, occupational safety guidelines focused solely on physical well-being. "Years ago, in the late 70s, 80s, and 90s, when we talked about health, it was heavily tied to physical health and physical workplace accidents," Scavarda explained. According to him, the COVID-19 pandemic accelerated the inclusion of mental health on corporate agendas, spotlighting an issue that had always existed but was neglected due to a lack of maturity among leaders and employees alike.

From individual blame to shared corporate responsibility

Scavarda emphasizes that corporate attitudes toward professional exhaustion shifted once the condition received formal medical recognition. "Burnout has always existed, but the ICD code was only established in 2022, officially classifying it as an illness. Before that, the response from organizations and even colleagues was that the person simply couldn't handle the pressure," he notes. Under this legacy mindset of individual culpability, workers hid their symptoms, leading to higher rates of accidents and medical leaves.

The progress introduced by NR-1 establishes shared responsibility for organizations to maintain a healthy work environment. Because exhaustion rarely stems from a single source, the regulation acknowledges the interplay of various factors. "Burnout is usually multifactorial, spanning both personal life and corporate dynamics," Scavarda says, noting that preventative measures reduce absenteeism and directly boost productivity.