According to Robert Half, businesses that prioritize Environmental, Social and Governance commitments may have difficulty retaining and attracting talent.
Robert Half’s latest Jobs Confidence Index, an economic confidence tracker created in partnership with Centre for Economics and Business Research Centre (Cebr), found that ESG is still a top priority for employees.
Nearly half of employees (47%) are more concerned about the environmental impact of their employers than they were three years ago. 60 percent also believe that organisations should be doing more to address ESG concerns.
Greenwashing: Growing awareness
Although 67 percent said that businesses had a responsibility for reducing their environmental impact on the planet, 56 percent felt that most businesses discussed ESG only to appear good. This suggests that talent pools have become more aware of greenwashing, and unsincere commitments. This perception may further erode employer trust as some companies reduce their ESG efforts.
Matt Weston Senior Managing Director UK & Ireland, Robert Half, stated that although ESG has been pushed down corporate agendas as companies have focused on other issues, workers still value businesses that are able to balance profit and purpose.
He said that workers have already stated they believe leaders pay lip service to ESG, and as more companies reduce their efforts there is the risk of a disconnection between employees and employers. “A weak employer brand will result in a longer-term challenge for talent management and acquisition strategies in a skills-short job market.”
ESG Concerns Extend Beyond Younger Workers
The research questions the idea that Gen Z employees are the primary drivers of ESG issues. Robert Half data shows that workers aged 35 to 54 believe businesses should be doing more in regards to ESG issues. This is a higher percentage than the 18-34 age group (63%). In addition, 71 per cent of the 35-54 group believe that businesses should reduce their environmental impact compared to only 63 per cent of younger employees.
This indicates that ESG is no longer a concern of a single generation but has become a standard expectation for the entire workforce. When making career choices, employees of all ages are evaluating their employer’s sustainability and ethical commitments.
Weston said, “The fact all employees are placing an increasing level of importance on the ESG commitment of a firm shows that employers are really at risk of damaging both their ability to attract and retain core personnel.” It also highlights the need for companies to communicate honestly and transparently their commitment to workplace cultures, ethical leadership and sustainability.
Transparent communication about ESG efforts, coupled with genuine action, can help maintain trust and engagement with an increasingly environmentally-conscious workforce.
