ESG Benefits to Employees within an Organization

Author: Shekinah Daphne
Last Updated: Nov 08, 2022 04:45
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ESG Benefits to Employees in an Organization

ESG stands for environmental, social and governance, the three most important non-financial factors for a company, which also aid us when it comes to making more responsible investments towards the planet. It is a strategic and analytical approach that is quickly gaining traction in institutions and organizations for the evaluation of sustainability performance.

Janus Henderson Investors, a British global asset manager, describes ESG as "the bedrock of sustainable and responsible investing for any company".

Environmental criteria help in the analysis of a company's contribution and performance in regard to environmental challenges. Social criteria is useful in evaluating the companies' relationship with their social environment. Governance criteria are used to identify companies' governance mechanisms and management responsibilities.

Some of the benefits that employees look forward to in an organization might include:

1. Prioritization of people safety and continuous engagement:

Incorporating ESG into the social aspect of employment safety has grown steadily due to the after-effects of Covid-19. In many organizations, the health and well-being of employees are ensured by adopting flexible ways of building resilience.

Better employee attraction, engagement, productivity and retention are benefits that can be gained by organizations that pursue sustainability. In the coming years, 75% of the workforce will be comprised of millennials, with high expectations of social purpose and expectations of accountability from the organization. They will also pursue companies whose values align with their own.

As Shanthi Naresh (Mercer) said, “Respecting individual choice and treating employees as equal stakeholders in designing work and workplace is at the heart of ‘working with the company". At the same time, ensuring employees feel the choice is fair and equitable to all work groups will be key to success”.

2. Nurturing well-being and enabling to thrive:

The lack of accessibility and affordability of healthcare was highlighted by the pandemic, which also exposed and worsened the gap in wealth between different populations.

In the next year, there is a reported risk of employee burnout at work by a shocking 85% as they feel underpaid and under-rewarded for their efforts. But further analysis and reports state that three out of four employees say they are satisfied in their current organization as they feel sufficiently valued for their work while simultaneously being able to maintain a healthy lifestyle.

The most sought-after aspect is the company’s ability to nurture mental, physical and financial well-being with significant benefits that also showcase its values.

3. Increase your competitive advantage:

The current job market is tighter and more competitive than ever, owing to economic shifts. To make themselves unique, companies need to get creative in advertising the purposes that their employees will be contributing towards in their day-to-day work and how it will benefit them.

The current generation of jobseekers prefer organizations that let them grow in their careers while also helping toward the betterment of the world we live in. A recent study conducted by MarshMclennan highlighted the fact that the current “top employers” have significantly higher ESG scores when compared to other organizations. From this, it can be deduced that there is a direct correlation between employee satisfaction and the ESG performance of an organization, leading to increased attraction to talent along with employee retention

4. Appeal to top next-gen talent:

The majority of millennials and Gen Z are highly focused on the challenges surrounding social advocacy along with ESG issues in their professional and personal lives. They usually come into interviews with questions about what the organization is doing to battle generational and environmental challenges, to which the organization will have to provide answers that measure up to the candidates’ expectations. They also look through the ESG data points on the company’s website so that should be a priority for companies as well.

Generally, employee satisfaction and productivity can be promoted by a strong ESG proposition that instils a sense of purpose and motivation in the employee. This also contributes towards retaining the best talent.

5. Ramp up retention:

The focus and promotion of ESG initiatives shouldn’t stop when the hiring cycle ends. Initiation of ESG into corporate strategies helps to retain up to 93% of employees, according to WeSpire.

Leadership in organizations should make reinforcing a culture of sustainability their main priority along with setting up CSR strategies and ESG initiatives. Continuous improvement can be made through the measurement of ESG goals through set indicators and key performance indicators (KPIs) by the top management. ESG initiatives can also be promoted at an individual level through various methods like volunteer activities and development camps for further ESG innovation.

6. Transforming for a ‘balanced’ future of work:

The pandemic with the acceleration of technologies, new work models and ways of working has introduced many new ways of work but has also taken its toll through ‘change, fatigue and exhaustion'. But simultaneously, employees are seeking a more balanced ‘future of work’ -  that allows time for family, hobbies, health, etc.  – with working remaining a significant part of life. Redesigning the experience of employees to include what they view and value as a “lifestyle contract” and reshaping HR and HR processes to cater to these proposed initiatives is important.

“The challenge is making progress while tackling differing views on the future of work. Companies that are advancing better are those reflecting their values more visibly, listening intently and working closely with multiple stakeholders, using data-driven decisions for action with empathy and transforming in a manner that is human, relatable, and ultimately sustainable”.


An effective ESG plan is demonstrated by the contribution of an organization to cost reduction, risk management and overall sustainability towards environmental challenges. It also proves that the company has a strong set of socioeconomic values and is willing to evolve with the ever-changing job market.

At Job Booster, we have dedicated ESG strategies that contribute to the development and improvement of social causes like poverty, rural education, women empowerment and so forth. These projects are headlined by our own employees, thereby increasing our knowledge and also contributing to battling the existential challenges that are present in our day-to-day lives. We also undertake various volunteer activities to keep our employees engaged while also making sure that we are evolving along with the changing times, thereby, ensuring that we are aware of the current trends to attract and retain the best talent.

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