ESG matters. Employee attraction, retention and satisfaction is at least somewhat contingent on your business’ clarity and transparency around these issues.
Investors want to see real, tangible steps towards improving your ESG efforts, and prospects are more likely to be turned into customers if your values are front-and-centre in your approach to business.
A recent Marsh McLennan report found that that leading employers’ ESG scores are 14% higher than the global average, and Gartner found that companies with a diverse workforce see employee performance improve by 12%, and ‘intent to stay’ by 20%.
Amid the recent ‘great resignation’, hybrid working and increased focus on social issues, the role of the HR leader has changed. Now more than ever, it’s up to HR leaders to devise ESG strategies and drive these efforts.
So, what steps can they take to do this?
1. Create a robust, diverse and inclusive culture in which all employees feel valued, respected and connected to the organisation.
2. Collaborate with leadership teams to understand what ESG criteria their organisation is measuring and how they can support those efforts.
3. Analyse workforce data to report on their organisation’s efforts to recruit and manage a diverse and skilled workforce.
4. Publish and promote ESG initiatives.
5. Empower team members to make decisions and voice concerns.
Rowan’s Louise Ellis commented:
“Successful businesses focus on three core pillars: people, process and systems. With this in mind having a holistic view of ESG addresses risks whilst also maximising opportunities to create value through people.”
Louise heads up our HR & Ops team, working with SME owners to appoint HR leaders that deliver; improving and promoting ESG efforts and thus increasing employee retention, stakeholder satisfaction and investment potential. Contact Louise directly here -> https://lnkd.in/eFfHyXH
Read the full Forbes article here -> https://www.forbes.com/sites/forbeshumanresourcescouncil/2022/08/25/the-important-role-hr-plays-in-esg-strategy/?sh=629efde049eb
