Businesses deprioritising Environmental, Social and Governance (ESG) commitments could face challenges in attracting and retaining talent, according to recruitment firm Robert Half.
The latest Jobs Confidence Index (JCI), an economic confidence tracker produced by Robert Half in partnership with the Centre for Economics and Business Research (Cebr), noted that ESG remains a priority for employees.
Almost half (47%) of workers care more about their employer’s environmental impact than they did three years ago, while 60 percent believe organisations should do more to address ESG issues.
Growing Awareness of Greenwashing
While 67 percent stated that businesses have a responsibility to reduce their environmental impact, 56 percent of employees feel that most businesses only discuss ESG for appearances, suggesting that talent pools are increasingly aware of greenwashing and insincere commitments. As some firms scale back their ESG efforts, this perception could further weaken employer trust and engagement.
Matt Weston, Senior Managing Director UK & Ireland at Robert Half, said that while ESG may have gone down the corporate agenda as companies focus on other issues, employees still place a great value on businesses that can balance profit with purpose.
“With workers already stating that they feel leaders are paying ‘lip service’ to ESG and more firms reducing their efforts, there is a risk of a disconnect between workers and employers,” he said. “A weakened employer brand will only result in a challenge for talent acquisition and management strategies in the longer term in a skills short job market.”
ESG Concerns Extend Beyond Younger Workers
The research challenges the assumption that ESG concerns are primarily driven by Gen Z employees. Robert Half’s data shows that 61 percent of workers aged 35-54 believe businesses should do more on ESG issues, a higher proportion than those aged 18-34 (63%). Additionally, 71 percent of those in the 35-54 age group feel that businesses have a responsibility to reduce their environmental impact, compared to 63 percent of younger employees.
This suggests that ESG priorities are no longer just a generational concern but are becoming a broader workforce expectation. Employees across different age groups are increasingly assessing their employers’ sustainability and ethical commitments when making career decisions.
Weston added, “The fact that all employees in the workforce are increasingly placing a level of importance on a firm’s ESG commitment demonstrates that employers really are at risk of damaging their ability to both attract and retain core staff. This also underscores the need for businesses to honestly and transparently communicate their commitment to workplace culture, 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.
