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How important is sustainability for employer branding?

Aug 7, 2023
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Sustainability is a hot topic in every industry nowadays – and with global temperatures rising, rightly so!
But when it comes to recruitment, how much do candidates really care about a company’s green credentials? Doesn’t salary trump all other factors?
If you want to build an employer brand that really speaks to today’s candidates, here’s what you need to know about sustainability. 

Do current and future employees really care about sustainability? 

How often do your candidates ask questions about sustainability during their job interview? Maybe never. But that doesn’t mean they don’t care. 
A global survey found 65% of candidates and employees want to work for a company with a social and environmental conscience
This means that if your green credentials aren’t up to scratch, candidates might not even apply in the first place. 
And concerns around climate change aren't only impacting your recruitment goals - they’re  keeping candidates awake at night. In fact, more than a third of executives interviewed, found that climate change is affecting their employees’ physical and mental health. 
So, it’s important to show your employees that you care about the environment too! If you don’t, you might lose them. After all, a whopping 40% of candidates would quit if their company’s values weren’t in line with their own!

Does a sustainable employer brand improve recruitment? 

The good news is, if you get sustainability  right, you’ll be rewarded. Among companies with a strong sustainability policy, 44% say that it makes a positive difference to recruiting and retaining top talent. Teams who can be proud of their company’s sustainability record are more motivated and more loyal. 
Plus, when it comes to recruitment, sustainable employer branding can give you a real competitive edge: even if you can’t compete on pay, you can attract top talent with green policies.

What’s causing the rise of sustainable employer branding?

It’s clear candidates today really care about sustainability - but what’s changed in the last decade to make this such a big priority for today’s workforce? 

Gen Z candidates entering the job market

Have you noticed how job candidates are getting younger? It’s not you getting older (well, not just that!), there really are more young candidates. By 2025, 27% of the workforce in OECD countries will be Gen Z, born between the late 1990s and the early 2010s. 
These younger employees care a lot about the state of the planet. Remember Greta Tunburg’s Fridays for Future protests? That’s a Gen Z movement. 
Around three-quarters of Gen Z and Millennials believe the earth is at a tipping point, and that companies could do more. Their expectations are changing the conversation, and smart companies are listening and adapting now.

Labor shortages mean the young can pick and choose

As more young people are joining the workforce, Boomers are retiring. And this exodus is leaving labor shortages: there’ll be 13.5 million fewer working-age people in Europe by 2030. And as Gen Z will have their choice of jobs and workplaces, you’ll have to work harder to attract and retain them, another reason why sustainability is a key issue for employer branding. 

Candidates have higher expectations of brands 

People are more educated about sustainability than ever before. And as they learn more, their expectations of brands’ commitments to sustainability are increasing. 
To many, sustainability is no longer a ‘nice to have’ but a ‘must have’. The standards have simply changed. If you’re not striving to be sustainable, you’re behind the times.
But be aware, adding an eco-label to your LinkedIn won’t cut it anymore. 
Candidates and employees expect companies to put their money where their mouth is when it comes to sustainability. So, how can you start to build a more sustainable employer brand? 

3 ways to create a sustainable employer brand

1. Deliver a rigorous ESG strategy that reduces CO2 emissions

Candidates and employees are looking for concrete actions across the company that can be clearly measured for success. So get specific - make actionable commitments to reducing your CO2 and be accountable to hitting them. 
While you might not be directly responsible for delivering this strategy, you can push top management for a good ESG strategy. Communicate how this can impact hiring - and look for ways you can be greener in your HR department. 
There’s room to impress these younger employees: only 18% of them believe their employers are strongly engaged in the fight against climate change. If you prioritize environmentally-positive actions, and make sure everyone knows about them, you’ll win their hearts and minds. 

2. Give employees opportunities to make a difference

Most Gen Z and millennials are already trying to reduce their environmental impact, and they want more opportunities for change. Here are some easy-to-action initiatives you could offer: 
  • Set up an employee giving programme where staff can use a specified number of work hours to volunteer at sustainability focused charities. 
  •  Offer training that helps them make more environmentally-sound decisions. 
  • Create a forum for employees to communicate their ideas on how they can make your company more sustainable. 
When they have concrete ways to contribute, it provides a sense of agency, helping combat the sense of helplessness that may lead them to switch off.  

3. Ensure your employee benefits package is sustainable

When was the last time you reviewed your benefit packages from an environmental perspective? It’s not only the right thing to do for the planet, it’s a positive way to respond to the concerns of eco-conscious employees. 
Sustainable employee transport benefits that recognize how younger generations get around today are highly valued. Car pooling, ride hailing, eBikes and eScooters are on the rise. Including those options in a flexible package is a sure way to attract their attention.
Keep in mind Gen Z’s desire to balance cost-of-living worries with environmentally-conscious choices. Offering them sustainable transport options beyond the office is another excellent way to respond to both those concerns. 
Our latest survey on employee transport benefits show how industry leaders are changing their strategy to introduce more sustainable benefits.
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