ad: Annual 2024 Now Open For Entries!
*

Responding to ESG requirements and the effect on employer brand and reputation

Published by

Environmental, sovial and governace (ESG) criteria has become hugely important to businesses as well as consumers, with an increased demand for more and more companies to take a closer look at key ethical issues like diversity, equal pay, sustainability and, most recently, their responses to crisis situations. Because of this, there has been a major shift in ethical expectations from both the public and employees.

But what are these expectations, and why is it crucial for creative businesses to meet them to maintain a strong employer brand and reputation? Steve Leigh, managing director of Sensu Insight believes he has the answers.

The ethical expectations placed on businesses

*

Our recent research into what employees want from their employers, covering Gen Z (aged 16-24), Millennial (26-41) and Gen X (42-57) age groups, found that where UK businesses stand on ethical issues can have a major impact on where current and new employees choose to work. This is supported by research from PWC, which found that 76% of consumers say that they’d stop buying from companies that treat the environment, their employees, or their community poorly.

Our Employer Brand Report surveyed 1,000 UK adults on the most important factors that determine who they would and wouldn’t work for. Results revealed that while most employees want their employers to strive for moral standards, like equality and diversity, Gen Z prioritise this the most and are most likely to let this determine their choice of workplace.

Nearly a third (31%) of Gen Z employees would choose to work for employers that proactively prioritise diversity and inclusion in their workforce, compared to 13% of Millennials and 11% of Gen X.

Additionally, 32% of Gen Z respondents want to know how their employer invests in responsible and sustainable business processes, compared to 21% of Millennials and 14% of Gen X. A similar trend is apparent for issues such as the gender pay gap and accessibility in the workforce.

This shows us that today’s graduates and job seekers will base their job hunt on more than just pay and benefits, meaning businesses need to be mindful of their brand reputation and how it can affect their recruitment process, as well as how they’re perceived.

The impact of responding to world crises, such as Ukraine

*

In addition to the ESG topics, world crises and business responses to them also have an impact on employee opinion, according to our research into public perception of business responses to the Ukraine conflict.

The conflict between Russia and Ukraine saw global, and even local, businesses reacting in many ways in support of the Ukrainians affected by the war. Reactions typically took the form of businesses decreasing, suspending, or terminating trade with Russian businesses, or those with connections to the Russian state.

While businesses’ actions in relation to the Ukraine war had a significant impact on their consumer brand reputation, for better or worse, it also altered the way employees viewed their employers.

Based on our data, employees’ views changed mostly depending on the nature and timing of the organisations’ response, with Gen Z once again having much higher expectations for their employers. Whether or not their employer met this expectation had a significant impact on their likelihood to remain affiliated with the business.

Our findings showed 31% of respondents aged 18-34 were more likely to work for businesses that acted swiftly against Russia, as opposed to those that took their time to respond.

Additionally, 18% of respondents said they would be less likely to work for a business that took no action against Russia at all, following their role in the conflict. Further still, 7% of respondents reported that they were either actively looking to change jobs, or have already resigned their role, as a direct response to their current employers’ inaction relating to Ukraine.

What can businesses learn from the findings?

*

It’s clear that businesses need to actively listen to their employees and take into consideration the expectations of their people. Following this, businesses need to demonstrate that they have listened, and use what they learn in their communications and management processes.

A strong ESG policy is the obvious first step for this, and one that many businesses have adopted. It’s reported that since 2020, 88% of publicly traded companies, 79% of venture and private equity-backed companies, and 67% of privately-owned companies now have ESG initiatives.

However, these policies must then be worked towards, with clear evidence provided when the goals have been met. This is especially important for staff recruitment as potential employees, particularly the younger generation of jobseekers, now take a company’s position on ESG topics incredibly seriously when choosing a potential workplace. This correlates with a survey of 2,000 UK adults which found 52% saying they’d remain with a company that had made ESG commitments.

Failure to measure up to these ESG commitments can severely impact reputation, as well as employer brand image, making this area a necessity for businesses to consider.

Brand reputation management is not only relevant for consumers and the general public, but for employees too, both current and potential. Young recruits of the Gen Z age group are most likely to make up a majority of new talent entering the creative workforce, so appealing to their opinions and expectations is vital for a business to succeed.

For creative industries, this makes employer brand reputation vital, especially since reports claim they’ll need 1.2 million new workers by 2022 to sustain growth. This will only become more difficult to achieve due to increased competition between employers, so understanding how brand reputation can affect recruitment is crucial for those wanting to succeed.

Fair pay and benefits are clearly not the only factors new recruits consider anymore when applying for roles. This needs to be considered in order to boost reputation, as well as attract and retain staff.

Comments

More Features

*

Features

A (mercifully) pun-free roundup of the best Easter 2024 campaigns

Easter is rarely held in the same regard as Christmas or even Halloween (unless you’re a confectioner, of course) but the iconography of the season is ripe for creativity. Easter ads campaigns of the past few years have seen everything from...

Posted by: Benjamin Hiorns
*

Features

Global creative calendar: April 2024

Across this month’s full slate of alluring extracurricular activities, everyone open to new experiences has worlds to gain. Current and future leaders spanning all industries are going all in: Curtains will soon draw back and stages will...

Posted by: The Darnell Works Agency
ad: Annual 2024 Now Open For Entries!