By Kevin Crow, Chief Human Resource Officer, Riskonnect
Published by HRO Today, October 27, 2022
In the midst of The Great Resignation, organizations can benefit from showcasing their commitment to social and environmental matters.
More than four million Americans have quit their jobs every month during The Great Resignation so far. And with inflation hitting a 40-year high, workers now have an even greater motivation to change jobs in pursuit of a pay bump. A recent global PwC survey found that more than one third of respondents plan to ask for a raise in the coming year, and one in five are likely to switch employers.
Companies are pulling out all the stops to hold onto their best workers by providing better compensation packages, remote work options four-day work weeks, unlimited vacation, and more. While these perks are valuable, there’s a growing retention and recruitment driver that deserves greater attention: environmental, social, and governance (ESG).
The Link Between ESG and HR
The “social” element of ESG focuses on the way a company treats people within the organization and communities in which it operates. Data shows that employees increasingly want to work for companies that take social matters seriously.
Three out of four job seekers report diversity is an important factor when choosing where to work and another 75% say they want to work for an organization that makes a positive contribution to society. Employees who are satisfied with their employers’ ESG impact and efforts to create a diverse and inclusive culture are more likely to stay with their employer for more than five years. Other in-demand workplace characteristics include fulfilling work opportunities, the ability to be one’s authentic self at work, and support in translating ESG considerations to employees’ daily work.
Organizations also need to address environmental matters. Workers are increasingly conscious of organizations’ environmental impacts and what they’re doing to reduce their footprints. According to an IBM survey, 67% of employees say they are more willing to apply for positions with environmentally sustainable companies and 68% are more willing to accept these positions.
In other words, employers that prioritize ESG performance, govern in a way that takes care of their employees and the environment, and show they are genuine in their commitments will have a leg up on their competitors in the war for talent.
Read what you can do now to demonstrate your commitment to ESG in HRO Today >>