Workers revolt at corporate plans to ditch DEI and ESG

UK businesses thinking of pushing their diversity, equity, and inclusion (DEI) and environmental, social and governance (ESG) responsibilities to the bottom of the corporate agenda could be in for a nasty shock, with policies likely to have a dangerous impact on workforce relationships.

So says the latest iteration of recruitment firm Robert Half’s Jobs Confidence Index (JCI) – an economic confidence tracker produced in partnership with the Centre for Economics and Business Research (Cebr) – Robert Half found that employees still place significant value on a firm’s DEI and environmental commitments.

Almost half (47%) of workers revealed that they care more about their employer’s environmental impact than they did three years ago. A further 60% stated that organisations need to do more on ESG, while 67% said that businesses have a responsibility to reduce their environmental impact.

Despite this, 56% believe that most employers only talk about ESG ‘for show’, which signals talent pools can be sensitive to green washing and the ESG U-turns some companies make.

According to Robert Half’s latest statistics, this is not just an issue for Gen Z workers, who have historically placed a greater focus on choosing a company based on its commitment to ESG.

The research also reveals that the majority (61%) of those aged 35-54 believe that organisations need to do more on ESG issues, with 71% of this age group indicating that organisations have a responsibility to reduce their environmental impact, higher than those aged 18-34 (63%).

Robert Half senior managing director UK & Ireland Matt Weston said: “It appears that ESG has slid down the corporate agenda for some companies, as attentions focus on other macroeconomic issues. However, as our data clearly demonstrates, employees still place a significant value on businesses that can balance profit with purpose.

“With workers already stating that they feel leaders are paying ‘lip service’ to ESG and more firms reducing their efforts, there is a risk of a disconnect between workers and employers. A weakened employer brand will only result in a challenge for talent acquisition and management strategies in the longer term in a skills short job market.

“What is certainly of interest is that this is no longer an issue that matters more to the younger generations, which has historically been the case. The fact that all employees in the workforce are increasingly placing a level of importance on a firm’s ESG commitment demonstrates that employers really are at risk of damaging their ability to both attract and retain core staff. This also underscores the need for businesses to honestly and transparently communicate their commitment to workplace culture, ethical leadership, and sustainability.”

TOPICS:Diversity and Inclusion environment recruitment