Are you curious about what can make your company irresistible to the next generation of employees? Well, look no further than ESG! What is ESG, you ask? It stands for Environmental, Social, and Governance factors, and it has become a game-changer in the job market.
Let's delve into the fascinating world of ESG and its impact on attracting the young talent of Generation Y (born between 1980 and 1996) and Generation Z (born between 1997 and 2012).
You may have heard about the climate strikes organized by Generation Z in recent years. These young activists are shouting a resounding "yes" when it comes to the importance of sustainable development. But how deep does their commitment go, and how does it translate to the job market?
Meaningful work is what young talent seeks
Studies have shown interesting parallels between Generation Y and Z. As professionals, they are constantly searching for meaningful work—a sense of purpose. In today's fierce war for talent, organizations that offer jobs with societal relevance or purpose have a competitive advantage over others for both Generation Y and Z. These generations consider ESG factors as crucial when choosing an employer. Companies that demonstrate their ESG commitment and actively engage in sustainable development have an edge when it comes to attracting applicants from these generations.
Transparency and accountability
Additionally, applicants from Generation Y and Z have a preference for transparency and accountability. Companies that openly share their ESG policies and communicate transparently about their performance in this regard are more likely to attract candidates from these generations. It's essential to highlight the organization's ESG efforts during the recruitment process.
Losing young talent
In the ongoing war for talent, organizations face fierce competition to not only attract but also retain the best candidates. Companies that do not prioritize sustainable development or lack a clear ESG policy run the risk of losing talent from Generation Y and Z to competitors who actively pursue sustainability. These companies may create a perception that they are out of sync with the values and beliefs of these generations, making them less attractive as employers.
Conclusion: The Importance of an ESG Strategy
It's safe to say that millennials and Gen Zers establish and terminate their relationships with companies for very personal reasons, often linked to the positive or negative impact a company has on society or its ESG commitment. As for Generation Alpha (born between 2010 and 2020), caution is advised when drawing conclusions due to their young age. However, it is evident that this generation is being raised by the purpose-driven Generation Y and growing up amidst the phenomenon of climate activism fueled by Gen Z. This "activism" could become transformative when Generation Alpha, with the inherited values from their parents, joins forces with Gen Z. Therefore, the significance of creating a clear ESG strategy and effectively communicating it to employees and potential candidates cannot be stressed enough.
So, if you want to attract the brightest and most passionate young minds, make sure your company embraces ESG and showcases its commitment to sustainable development. Your future workforce will thank you, and you'll be well-positioned to thrive in the evolving world of work.