How Adopting an ESG Strategy Can Help You Attract Talent
The world is seeing an increasingly competitive job market. Getting top talent requires more than putting out a competitive salary benefits package with a wide range of perks. The next generation of finance & accounting talent wants to know that they are working for a purpose and for a company with a positive and ethical approach. Therefore, the best way to attract such candidates is to adopt an Environmental, Social, and Governance (ESG) strategy. How can this be implemented, and is there a case for including the difference between management and leadership as part of the recruitment drive?
Understanding ESG Strategy
ESG has three central factors. We shall look at each in turn and see how they can form the basis of a draw for recruits.
- Environmental: This factor is essential for all of us, but potential new employees increasingly want to know that they will not be working for an organisation unconcerned with the care and stewardship of the planet. They will look at hybrid working and offices with a green element. They will also want to see a carbon offset that achieves its targets.
- Social: The social impact that a company garners and creates is also a significant consideration for a recruit. How does the company see itself in its wider community? It has a workforce that can be good in the world and generate profit, so why not use it? Also, there needs to be a clear development and growth policy for employees with clear development. It’s where the difference between management and leadership comes into focus.
- Governance: How the company is run from the top down is scrutinised. With a greater emphasis on diversity and inclusion in our society, an actively open company manifesto or agenda is one of the critical points that a new employee requires. Why would they look to join you if there is no chance of advancement or if those at the top appear remote, aloof, and unaware?
The Growing Importance of ESG in Recruitment
Alignment with Candidate Values
Today’s job seekers, the growing group of millennials, Gen Z, and Generation Y, are more socially and environmentally conscious. They prefer to work for companies that reflect them and their values. Their offspring, Generation Neo and Alpha, are predicted to be even more inclined towards this. By adopting an ESG strategy, your finance team can signal to potential candidates that your company is committed to making a positive impact. With this approach, you can get the people you want in place.
Enhancing Employer Brand
An ESG strategy can significantly boost your company’s reputation. This makes it a beacon for the best and brightest who want to participate in this movement and will bring skills to enhance that vision and reputation.
Specific Benefits of ESG for Recruitment
Attracting Diverse Talent
It has become very clear that inclusion and diversity bring new ideas and give companies improved perspectives on ways forward. For entrepreneurs who want these kind of free-thinking ideas, ESG is a given. ESG itself puts diversity as a bedrock component to success and is a crucial feature.
Increased Employee Engagement and Retention
Employees do more than come to work for money. They want to be part of something and feel pride and satisfaction in what they do. While money and the financial rewards of working are straightforward, many broad concerns exist in the workforce. Asking for feedback and pulse surveys to show that there is a difference between management and leadership is a great way to engage and change a company’s outlook.
Competitive Advantage in Talent Acquisition
With an active ESG policy, you can set yourself apart from the typical employer by offering more input and involvement with your potential new employees. You will have more to offer.
Implementing an ESG Strategy for Recruitment
Conducting an ESG Assessment
How do you create an ESG strategy in a company? The first step is to comprehensively review how you operate and where your focus is placed. This can be a lengthy process, as with any change, but creating an ESG strategy does not need to be a chore.
Setting Clear ESG Goals
Based on the assessment, set clear and measurable ESG goals that align with your company’s mission and values. Once these are set up, you can advertise and market them to teams you want to create through mission statements and manifestos. It all needs to be backed up then with direct action.
Engaging Employees in ESG Initiatives
Make sure that ESG works centre around a set team or task force. These are usually the most passionate and pragmatic team members you think will deliver on the project. It also means engaging with the broader workforce to get temperature checks on a good ESG.
Communicating Your ESG Commitment
Effectively communicating your ESG commitment is crucial. You must have a strong message on social media to show what you have to offer. Modern examples are Facebook and LinkedIn not forgetting traditional methods of public engagement in towns, centres and social places.
Adopting an ESG strategy is a powerful and innovative recruitment tool. It will bring in the talent you need from the widest of backgrounds and ensure that you also provide a more compassionate approach to finance and how your company is perceived in society. It will also bring in custom dividends as well. Whilst not always easy to set up, it offers a new and better approach to how we work and the relationship between business and society.
Core3 are pioneering conscious recruitment for Finance & Accounting talent. If you’d like us to help you build your employer brand and attract the best talent for your business, you can reach us on: [email protected] // 0117 213 0300
