With corporate responsibility firmly in focus, an organisation’s values have moved from the sidelines to the forefront of what attracts – and retains – the best talent.
Today’s candidates, particularly Millennials and Gen Z, want a business with purpose. The new candidate pool isn’t solely drawn to pay cheque or title but to companies making genuine commitments to environmental sustainability, social responsibility, and ethical governance. This demand for values alignment makes ESG (Environmental, Social, and Governance) not just a talking point but a decisive factor in talent acquisition.
For leadership teams, this is a profound shift. Companies that embrace ESG principles experience real rewards, from stronger employee loyalty and lower turnover rates to a heightened reputation and deeper client trust.
As you’ll discover, building an ESG-focused recruitment strategy isn’t only about appealing to an evolving candidate market – it’s about future-proofing your organisation in an increasingly values-driven consumer market.
Shifting candidate expectations
Nearly 80% of job seekers prioritise working for employers who align with their values over traditional incentives. Clear ESG commitments have reflected in higher retention rates for firms actively committed to responsible practices.
IKEA has long integrated sustainability into its core operations, aiming to become climate-positive by 2030. Their focus on using renewable materials, investing in green energy, and creating sustainable products appeals to environmentally conscious talent. This commitment boosts employee loyalty and retention, reinforcing IKEA’s reputation as a responsible and attractive employer for those driven by purpose.
“Finding candidates who are not only skilled but also values-driven requires a different recruitment strategy. Leadership that openly integrates ESG into job descriptions and career sites has the ability to attract ethically conscious candidates and build a team aligned with the company’s mission. This alignment can strengthen engagement and reduce turnover.”
Steph Halliday, Managing Director
Why ethical leadership resonates
Deloitte has set a standard in ethical governance by embracing transparency and accountability. Through clear, measurable diversity, equity, and inclusion (DEI) targets, the firm not only commits to their values but actively demonstrates them. Their approach has built trust among employees and candidates who want to work in an authentic environment.
Effective governance isn’t just about following protocols; it’s a sign of an organisation’s integrity and accountability. Recent McKinsey studies indicate that companies with strong governance practices see greater employee trust and retention, as staff feel they’re part of an ethically grounded organisation.
By setting clear governance metrics tied to ESG goals, such as diversity benchmarks or sustainability targets, leadership reinforces the company’s commitment to transparency and ethical leadership. This approach not only reassures new hires but also cultivates trust across the entire team, building an organisational culture where governance strengthens employee advocacy.
Do it for your reputation
With public scrutiny at an all-time high, a robust ESG programme is essential for enhancing corporate reputation and client loyalty. Danone’s ESG commitment, highlighted by its 2020 B Corp certification, has strengthened its reputation and positioned it as a top employer for talent. By balancing profit with purpose, Danone attracts employees who value sustainability, reinforcing its brand as a socially and environmentally responsible leader.
But it doesn’t just affect talent, studies from 2023 show that 60% of consumers would switch to companies demonstrating stronger ESG commitments. This is an essential consideration for leadership, as each values-aligned hire reinforces the authenticity of the organisation’s ESG commitments.
Consider a leadership team that has committed to reducing carbon emissions by 30% over the next decade. By hiring employees who share this vision, leadership ensures that these goals are met with genuine purpose. This visible commitment builds trust, not only among employees but also with clients and stakeholders, who see ESG embedded into the company’s fabric, enhancing its reputation as a responsible and future-ready organisation.
Future-proofing your business
Integrating ESG into recruitment isn’t just a response to current trends – it’s a strategy for resilience. Recent data from BCG reveals that companies with robust ESG frameworks are better prepared to deal with regulatory shifts and market disruptions due to their values-aligned workforce. In an evolving landscape, building resilience and setting the groundwork for sustainable growth is crucial for lasting success.
Talk to Denholm
Contact us on 03303 359 818 for advice and support on the nuances of sourcing candidates who align with your organisation’s strategic objectives and values. We’re ready to help.