How Sustainability Recruits and Retains the Best Talent

SME owners are never going to put sustainability at the top of things to do. It is enough keeping the wheels of business in motion without making environment a priority, but there are growing commercial benefits from carbon reduction, and one aspect is being able to recruit the best talent, and keeping it.

The traditional factors that attract job candidates, salary and job role, though obviously important, are no longer the all defining features that draw individuals to new positions. And benefits such as free gym membership and private healthcare are a declining attraction. Instead, people want to work for companies they can believe in because of environmental and social policy. There is plenty of evidence for this.

A detailed study by McKinsey found that the more robust a company ESG programme, the more likelihood the best talent will be drawn to it. Another recent survey, this one by Randstad of 35,000 people of working age, reveals that nearly 50 per cent of Millennials and Gen Zs won’t join a company unless it mirrors their social and environmental principles.

In the European Investment Bank's (EIB) latest Climate Survey, it found 61 per cent of British adults believe it is important that prospective employers address climate impact, with 15 per cent saying it should be the single most important company task. And research by Talent Solutions reveals that the majority of individuals want to work for organisations that reflect their own beliefs on sustainability.

Equally, the causes of the Great Resignation were directly linked to whether employees felt they had a positive connection with their employer, and company goals beyond making money was crucial in this. After lockdown, people decided they needed more purpose from work other than income. They wanted to feel part of something positive that does good as well as fulfilling commercial goals.

What all this means is that to attract the best talent and retain it, a credible environmental strategy is a major advantage. This is going to become more important in future as more people have more focus on global warming and its causes.

For SME owners, the positive aspect of this is two fold. Few companies are using carbon reduction as an effective HR asset. Early adopter advantage is still to be claimed. Secondly, highlighting company sustainability can be effective even if progress with it is not very advanced. The key factor is demonstrating continuous progress.

However, it takes a degree of creativity to promote green credentials effectively, both internally and externally. Treating developments on the environmental as a selling point, and integrating it into internal communications, and sales and marketing strategy is what is needed, including presence on the website, social media, blogs, public relations, advertising, brochures and internal newsletters. What counts is telling the story of carbon reduction and putting it out on display. Making sure employees and recruitment candidates can see it is what matters.

Next steps

The best way to publicly promote progress on sustainability is to tell it as a story. Consider it a narrative similar to Hollywood scripts with the ups and downs, including overcoming obstacles and set backs. The best kind of winner is the one that triumphs through adversity, so the problems as well as the wins should be described. And also included should be the personalities involved, from the most junior to the most senior.

The habit of most companies is to release sustainability updates like putting up an announcement on a notice board – a one off message that is not very engaging, and quickly forgotten. But a rolling description of the journey of decision making, implementation and results brings developments to life, and makes for more credibility and authenticity. More awareness is created, and the story also attracts customers, whether B2B or consumer.   

However, it is important to be careful if the decision is made to announce significant carbon reduction plans. Done clumsily, this can have a negative effect. Unless published with clearly stated measurable targets, talking about plans risks being treated with cynicism due to the abundance of greenwashing. It is often better to publicise first steps once they are being taken.

Having a sustainability strategy that people know about, and understand does make a real difference to employee retention, and assists with recruitment, particularly with younger talent. It is not about needing to make exceptional advances in reducing carbon footprint, laudable though that is. Making continuous progress and showcasing it in narrative form will work.   

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