Robert Half warns ESG apathy risks weakening employer brand

As more companies de-prioritise their Environmental, Social and Governance (ESG) commitments, recruitment firm Robert Half has warned that doing so could harm employer-employee relationships and damage long-term talent strategies.

In its latest Jobs Confidence Index – produced with the Centre for Economics and Business Research (Cebr) – Robert Half found that 47% of UK workers care more about their employer’s environmental impact than they did three years ago, while 60% say businesses need to do more on ESG. However, 56% believe most employers only talk about ESG “for show”, revealing growing worker scepticism.

The findings suggest ESG is becoming a workforce-wide concern, not just a priority for younger generations. Among those aged 35 to 54, 71% believe organisations have a responsibility to reduce their environmental impact, compared to 63% of those aged 18 to 34.

Matt Weston, senior managing director UK & Ireland at Robert Half, 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.”

Weston added: “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.”