How Diversity and ESG Impact Employee Acquisition, Engagement, and Retention
- November 16, 2023
- Posted by: Admin
- Category: Uncategorized
Today, the factors influencing talent acquisition, employee engagement, and retention have evolved dramatically. Among the new imperatives at the forefront are diversity and ESG, which have quickly become essential considerations for both job seekers and employers. Now, more than ever, candidates are evaluating potential workplaces based on their commitment to diversity, inclusion, and Environmental, Social, and Governance (ESG) principles. This trend is particularly pronounced among millennials and Gen Z, who make up a significant portion of the workforce and are actively shaping the values and priorities of the modern workplace.
A Deloitte survey found that 76% of millennials and 80% of Gen Z employees consider a company’s social and environmental commitments when deciding where to work. Additionally, research conducted by McKinsey & Company reveals that diverse companies are 35% more likely to outperform their non-diverse counterparts, emphasizing the impact of diversity and inclusion on a company’s overall performance.
Diversity and ESG are not just checkboxes but essential components of a modern organization’s identity and success.
Impact on Talent Acquisition
Companies that prioritize diversity and ESG principles attract a wider talent pool. A recent survey by Glassdoor found that 76% of job seekers consider diversity an important factor when evaluating job offers. Prospective employees are increasingly drawn to organizations that align with their values and show commitment to these principles.
Not only that, but a substantial 32% of employees and job seekers would refrain from applying for a job at a company lacking diversity in its workforce.
A solid commitment to diversity and ESG initiatives can boost your employer brand. It signals to potential hires that your company cares about societal and environmental issues, making it a more attractive workplace.
Impact on Employee Engagement
Sustaining workforce retention relies heavily on employee engagement. Regrettably, the U.S. workforce has witnessed a decline in engagement since pre-pandemic times. In 2021, there was an initial drop from 36% to 34% in engaged employees, followed by a further decrease to 32% in 2022. Factors contributing to this decline include a sense of disconnection from the company’s mission or purpose and a perceived lack of care among employees in the workplace.
Employees who share their company’s commitment to ESG values feel a stronger connection to their work. This alignment with personal values enhances motivation and engagement. A LinkedIn survey revealed that 73% of employees believe their job is more fulfilling when they can make a social or environmental impact.
Promoting Diversity and ESG in Your Organization
#1: Set Clear Objectives: Define clear diversity and ESG objectives to guide your organization’s efforts.
#2: Educate and Train: Provide diversity and inclusion training for all employees to foster understanding and sensitivity.
#3: Incorporate ESG Practices: Embed ESG practices into your corporate culture, focusing on sustainability, social responsibility, and ethical governance.
#4: Monitor and Measure: Utilize workforce analytics to track progress and ensure that diversity and ESG goals are met.
By analyzing data, identifying disparities, and making informed decisions, you can foster a more inclusive and responsible workplace, attracting top talent and enhancing employee engagement and retention. Harness the power of data to drive meaningful change in your organization.