Employees are resigning. Workers aren’t returning to the office after Covid. It’s becoming harder and harder to attract the right talent. And it’s time to act.
At a time when many people are changing the way they think about work, those old tried-and-tested methods of staff acquisition and retention are no longer valid. Businesses need to rethink how they hire, what’s important to people in the workplace and also how they look after their employees.
And one of the most important considerations is ESG.
What is ESG?
ESG stands for Environmental, Social, and Governance:
- Environmental recognises the impact businesses have on the planet
- Social recognises the relationship between businesses and the community
- Governance recognises the need for regulations to maintain compliance
Having a strong ESG proposition is one of the most important things a business can do. The recession, climate change, the pandemic, the war in Ukraine, the rising cost of living, and the tragedy that comes with all of these events is affecting the world in ways we never could have imagined. Real ESG change is needed. And the only way we’re going to achieve that change is if meaningful, impactful action is taken.
Part of the responsibility for sparking this action falls on businesses.
Why? For two big reasons.
Firstly, ESG applies directly to businesses. Every company uses energy. Every company operates within society. And every company needs to operate under a set of rules and regulations that ensure ethical ways of working. If ESG is relevant, then it stands to reason that a business should be clear on their position on it.
Secondly, it’s important to remember that, without customers, there is no business. And so, at a time when many people are struggling, giving back – in one way or another – to the people and environment that supported your growth is a natural response. Organisations have an inherent responsibility to the world around them.
But building a strong ESG proposition is more than just the right thing to do. In today’s landscape, it’s proving to also be the necessary thing to do. Especially when it comes to attracting and retaining top talent in the time of the Great Resignation.
ESG for Attraction and Retention
There are two clear and strong links between ESG and hiring:
- Purpose
What motivates employees to get out of bed every morning? Believe it or not, it’s no longer just about money. In fact, reports suggest that 90% of workers would be willing to accept a lower salary if it meant doing more meaningful work. Employees want purpose. They don’t just want a pay check, they want to work for an organisation that gives them the opportunity to engage in meaningful ESG-related projects.
- Cultural fit
Every company understands the importance of cultural fit. Employees want to feel like they belong to an organisation; that they’re included, welcomed, valued, and that their interests are cared about. So, what are they interested in? Given all the things going on in the world, more and more are caring about ESG. And 86% of employees want to work for a company that cares about the same issues they do.
Next Steps
If you haven’t already, it’s time to either build or enhance your ESG proposition. Work to define what matters to your organisation, and what you want to achieve from an environmental, social, and governance perspective. Determine goals and consider how you’re going to track your progress towards them. And most importantly, promote them. Communicate them. Share them. Use them to build a loyal workforce that’s on the same page as you are; a workforce that shares your ideas and values and is excited to help you deliver powerful change and a big impact.
