In today’s competitive job market, attracting top talent is more challenging than ever. A recent Gartner survey found that one-third of job candidates received four or more offers, with the most desirable candidates likely receiving multiple offers. This raises a crucial question: why would an exceptionally talented applicant choose to join your firm over another?
The ESG Advantage
One compelling answer lies under the umbrella of Environmental, Social, and Governance (ESG) values. These differentiating factors, alongside brand prestige, salary, and benefits, can significantly tilt the recruitment balance in your favour. ESG values are increasingly important to job seekers, especially millennials, who prioritise fulfilment and purpose in their careers.
ESG Insights on Talent
- Two-thirds of millennials would quit their job if they don’t find fulfilment or if it lacks ambition beyond profit.
- Over 36% have rejected a job or assignment because it didn’t align with their values.
- Nearly half have pressured their employer to act on climate issues.
- 62% of chief experience officers are equally focused on positively giving back as they are on increasing profits
(Source: Deloitte, 2023).
These statistics highlight the growing importance of ESG values in attracting and retaining talent. Beyond recruitment, ESG values are becoming a cultural standard for existing employees, customers, and business partners. Companies with high ESG scores enjoy better reputations, making it easier to retain current employees and attract new ones.
ESG as a Unifying Force
Companies should view values not as a response to demands but as a unifying force within their organisation. Shared organisational values provide identity, motivation, engagement, and cultural cohesion. They also offer branding and marketing content, greater customer loyalty, and reputational benefits from the consumer side. High ESG scores make it easier for other ESG-minded companies to do business with you.
Top Enterprise Priorities in 2023
- 74% Driving operational efficiency
- 72% Enhancing ESG/CSR
- 72% Digital Transformation
- 71% Improving margins via cost reduction
- 69% Enhancing risk management
- 68% Developing Supply Chain resiliency
- 65% Introducing new products/services or expanding into new markets
- 65% Expanding organically
(Source: Deloitte)
The Role of Procurement in ESG
Procurement plays a crucial role in the shift toward ESG-friendly operations. As eight out of the nine impacts on Scope 3 emissions can be managed by procurement, sustainability will become an increasingly significant part of the procurement function. Recruitment efforts should focus on candidates interested in sustainably run operations, and existing employees should receive training to enhance their capabilities in this area.
Challenges and Opportunities for Certain Industries
Industries such as oil, gas, mining, and tobacco may find it challenging to attract prospective employees based on their social or environmental records. However, efforts should still be made to highlight positive steps in ESG, while boosting brand desirability in other areas, such as social inclusivity.
Driving Long-Term Success Through ESG Values
In conclusion, integrating ESG values into your company’s core can provide a competitive edge in attracting top talent. By prioritising fulfilment, purpose, and sustainability, businesses can appeal to the values of modern job seekers, enhancing their recruitment and retention efforts. Embracing ESG is not just about meeting demands; it’s about creating a cohesive, motivated, and engaged workforce that drives long-term success.
Note:
This article is part of an ongoing series exploring trends in the APAC procurement sector. Next, we’ll explore how to harness the power of diversity. Can’t wait? Download the entire series as a report here.
About the Author:
Ben McDonald is a Co-Founder and Partner at Connexus Global. With a 20-year track record in recruitment, particularly in Supply Chain & Logistics, Ben partners with clients to secure top talent, driving their success in the Asia-Pacific region.
About Connexus Global:
Connexus Global is a specialised recruitment firm operating in Singapore, Bangkok, London, and Austin, focusing on the industrial, consumer markets, commodity trading, and renewable energy sectors.
