As most of us strive towards a more sustainable future, businesses are increasingly blending Environmental, Social and Governance (ESG) considerations into their core strategies. ESG, once mainly linked with corporate responsibility and investment, is fast becoming an essential framework guiding all aspects of an organisation’s operations, including how it attracts and hires talent.
For Heads of TA and Recruitment, embedding ESG principles into the talent acquisition process supports broader corporate sustainability goals as well as helping to attract top talent, boost retention and enhance brand reputation. Often called sustainable hiring, this approach can help ensure the recruitment process aligns with an organisation’s commitment to creating a positive impact on the environment, society and governance standards.
Why ESG in recruitment matters
Today, job seekers, particularly millennials and Gen Z, are prioritising employers that align with their values. In fact, 72% of Gen Zs and 71% of millennials say environmental credentials and policies are important when considering a potential employer, according to Deloitte's 2024 Gen Z and Millenial Survey. With ESG factors influencing consumer, investor and now future employee decisions, companies must integrate these values into the recruitment process to remain competitive in the labour market.
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Key benefits of ESG in hiring
1. Attracting purpose-driven talent: Much of the talent you're targeting will be concerned with sustainability and actively seek organisations with strong ESG commitments. So demonstrating these values in your recruitment will help broaden who you attract and align with your company’s mission.
2. Strengthening company reputation: Showcasing ESG and sustainability principles during the recruitment process helps companies enhance their public image as socially and environmentally responsible.
3. Promoting long-term business success: Organisations that embed ESG into their hiring process are likely to benefit from improved retention rates, a more engaged workforce and long-term operational success due to a shared commitment to sustainability.
How to embed ESG into your recruitment process
To effectively integrate ESG principles into talent acquisition, you must address three key areas: environmental impact, social responsibility and governance standards.
1. Think about the environment during the hiring process
A key component of ESG is reducing the environmental impact of your organisation’s operations - and that includes the recruitment process too. Here’s how to make your talent acquisition greener:
Go digital and paperless: Minimising paper use in recruitment is one of the most obvious and simplest ways to reduce environmental impact. You're probably doing it already, but let's make sure! Digital job postings, online applications and electronic contracts can replace traditional paper-heavy processes (and also removes the carbon footprint of physically sending hard copy contracts in the post!).
Here are some paper facts from The World Counts to put things into focus: In Europe, the US and Japan the average person uses 200 to 250 kilos of paper every year. In India, it's just 5 kilos and in some countries it's less than 1 kilo!
Then consider:
- Paper accounts for 26% of total waste in landfills;
- And between 2 and 13 litres of water is needed to produce one single A4 sheet of paper (the pulp and paper industry is the single largest industrial consumer of water in Western countries)
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Virtual interviews and remote assessments: One of the biggest environmental impacts of recruitment is candidate travel. The Covid pandemic forced many of us to move many processes online and that included interviews during that time. But have face-to-face interviews slipped back in as standard practice regardless of the interview stage? If they have, then consider the benefits of virtual interviews and remote assessments instead to cut down on travel-related emissions.
It is also more sustainable, often more convenient and cost-effective for both you and candidates. We also understand that face-to-face interviews can be better, so if you do need to interview candidates this way, consider virtual interviews for the first shortlist and in-person interviews only for your final shortlist.
Eco-friendly office and careers events: When in-person connections are needed, think about how your office environment can be more sustainable. Use energy-efficient lighting in interview rooms, avoid single-use plastics (in your office and at events) and opt for eco-friendly promo materials to use at recruitment fairs.
2. Social considerations in hiring
The “S” in ESG focuses on social responsibility and includes equality, diversity and inclusion (ED&I) as well as fair labour practices. If your company prioritises social considerations, you're more likely to nurture a diverse, engaged and loyal workforce.
Equality, Diversity and Inclusion (ED&I): One of the most effective ways to demonstrate social responsibility in recruitment is to implement robust ED&I initiatives. According to McKinsey's Diversity Matters report, companies committed to diversity have a 39% increased chance of outperforming the bottom quarter of ethnic representation.
Ensuring your job postings, hiring panels and interview processes are free from bias is essential. Think about the language used in job adverts and descriptions, is it inclusive? Take a look at our blog on creating an inclusive recruitment process.
Flexible work and wellbeing: Another key social factor to consider is employee wellbeing. In your job adverts, be sure to include details of flexible work arrangements, such as remote work options, part-time roles and job-sharing to appeal to a broad pool of candidates. Data from our Candidate Insights Report (2024 Q3) showed 17% of candidates chose to apply because of the offer of flexible working.
Community and social impact: Candidates are increasingly looking for organisations that give back to their local communities. Show your company's social responsibility by highlighting initiatives like volunteer programmes, charitable donations or partnerships with social enterprises. Here’s an interesting read from Indeed with some examples of core company values from top employers.
3. Governance and leadership in recruitment
Strong governance and leadership are key to ensuring recruitment practices are (and remain) ethical, transparent and meet legal and industry standards. This means managing hiring processes effectively, treating candidates with kindness and respect and ensuring you're meeting fair labour practices.
Being open in hiring: Good governance in recruitment begins with being transparent. Make sure job descriptions, salary ranges and company policies are clear and shared with candidates. Keep communication open and honest throughout the hiring process to help build trust and ensure potential employees know exactly what to expect.
Ethical labour practices: Companies should stick to fair hiring standards, like paying living wages, offering equal opportunities to all candidates and following labour laws.
With data from Folks a recent blog stating that 44% of employees cite lack of recognition as a reason for looking at other opportunities, ensuring employee contributions are regularly acknowledged can play an important part in retention
Candidate data protection: With the rise of digital recruitment platforms (and the rise of high-profile hacks), keeping candidates' data safe is critical. Companies must be vigilant about how they collect, store and use personal information to comply with GDPR regulations and safeguard against potential breaches.
How to show off ESG to prospective candidates
Embedding ESG principles into the recruitment process is not just about making internal changes - it’s also about making sure you're shouting it from the rooftops to prospective employees! Here are some ways to highlight your company’s ESG commitments during the recruitment process:
1. Incorporate ESG into employer branding: Communicate your company’s commitment to ESG on your careers website, in job descriptions and across your company and personal social media accounts. Highlight key initiatives, such as carbon reduction targets, DEI efforts, and corporate governance policies.
2. Engage in ESG-centred recruitment campaigns: Launch campaigns that showcase your organisation’s environmental and social impact, whether that's through video testimonials from employees, publishing stories about your sustainability efforts or partnerships with external ESG bodies.
3. Be truthful and transparent about ESG achievements: Include ESG metrics in annual reports or sustainability statements and share this information with prospective candidates during the recruitment process.
4. Provide ESG-related training and development: Candidates who value sustainability will naturally be drawn to employers who offer training on ESG topics. By providing professional development opportunities in areas like sustainable business practices and ethical governance, you can further engage existing (and future!) employees and align them with your company’s values.
Conclusion: Integrate ESG to get ahead in recruitment
As businesses increasingly focus on sustainability, recruitment managers and HR professionals must adapt by embedding ESG principles into the hiring process. Addressing environmental impact, promoting social responsibility and ensuring strong governance - they're all ways for companies to attract purpose-driven candidates, reduce their environmental footprint and strengthen their reputation.
Sustainable hiring isn’t just about finding the right people for the job - it’s about building a workforce that's aligned with the company’s mission to positively impact the environment, society, local communities and business governance. Organisations will not only create a greener, fairer workplace but set themselves up for long-term success in an increasingly ESG-focused world.