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How sustainability can help employers win the war on talent
Jun 01, 2022

Adopting sustainable environmental practices is proving to be an increasingly important tool for any organisation. Being more resource-efficient reduces a company’s environmental impact, improves their cost position and reduces the risk of disruptions to the supply chain, while acting responsibly betters relationships with regulators, stakeholders and consumers. 

Perhaps a less obvious – though no less important – business case for adopting environmental practices is its ability to assist in the ongoing challenge of attracting and retaining talent. This is particularly poignant in the current climate, with job ads at an all-time high and unemployment in Australia the lowest it’s been since 2008. 



More than ever, candidates and employees want jobs that gives them an opportunity to make a difference to society. In fact, a survey by Accenture found that an employee’s sense of purpose or impact on society is the second-most important criteria for young talent when considering new jobs. 


This World Environment Day, we look at why eco-conscious businesses have a better chance of attracting top talent and improving the performance of existing employees. 

 


Sustainability connects organisational values to job seekers’ personal values 


Climate change and dramatic weather events are becoming an increasing global concern, particularly for younger generations. For Millennials, who will make up 75 percent of the workforce by 2025, it makes sense then, that they are seeking to work with organisations that share their values when it comes to making a positive contribution to the environment. 


According to an employee engagement study, 74 percent of employees said their job is more fulfilling when they’re given the chance to make a positive impact on social and environmental issues, with 70 percent indicating they’d be more loyal to a company that helps them contribute to solutions to these issues. Conversely, 51 percent of employees indicated they would not work for a company that doesn’t have strong policies addressing social or environmental sustainability issues. 

 


Sustainable business practices can improve employee fulfilment 


According to a recent Sustainability Report from GetSmarter, 56 percent of employees prefer working with companies that are dedicated to environmental conservation, as they want to feel like they’re part of a workforce that has a meaningful impact. When employees believe in a company’s mission and vision, they are more motivated to continue supporting it. 

This sense of purpose has become so important that a Deloitte study found two in three Millennials would quit their job if they don’t find fulfilment, or if they sense that their current employer has no ambition beyond profit. 


However, it is important that a commitment to sustainability and eco-conscious initiatives are more than just an empty promise used to attract job seekers, who are likely to quickly see through this. 

 


Sustainability can improve employee engagement and output 


According to research carried out last year, employees who report that their organisation is environmentally and socially responsible also report, on average, to having better mental health. It is speculated that this is in part due sharing aligned values with their employer and having a greater sense of purpose and belonging, which ultimately gives rise to increased psychological safety at work.

 

This isn’t just a win for employees, but also for organisations, as studies have shown that employee happiness correlates with 31 percent higher productivity and 37 percent higher sales. Furthermore, workplaces where employees feel psychologically safe will likely benefit from employees who work more collaboratively and have up to 3 times increased creativity.   

 

When it comes to the organisational benefits of increasing environmental sustainability, the data is clear across multiple fronts. Improving a company’s performance on environmental metrics can increase a company’s bottom line, customer base and value to shareholders. But it also provides employees with a greater chance of attracting employees and creating an environment where they are more engaged, happier and productive. 

 

If you’re looking for staff, partner with a recruitment agency that understands what job seekers are looking for, and contact Bayside Group today

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