Expert opinion: Why a lack of climate action will hinder your talent recruitment

According to the 2021 Return on Action Report published by Atlassian and PWC, 81% of survey respondents agree that businesses need to take full responsibility for their environmental impact. Yet at an event last week, more than 50% of the CFOs and CEOs in attendance said their business wasn’t doing anything about it. 

This survey, the event responses and the upcoming summit make it clear that climate action and sustainability values are something businesses need to be considering. 

It also begs the question: if businesses don’t consider these actions, are they exposes themselves to countless risks and hindering their talent retention and recruitment?

SmartCompany Plus asked ten HR professionals and recruitment specialists to weigh in. Here’s what they had to say.

Key takeaways

1. If a company isn’t looking to address climate change, it’s very hard to attract good people.

2. In a time where finding (and keeping) great talent is so competitive, businesses are shooting themselves in the foot by not taking a stance on sustainability and climate change.

3. Smart companies will include sustainability/climate action as one of their core business values — and they will also back this up with action.

4. The key to being a responsible employer is to be authentic.

5. Businesses who are late to the climate action party simply won’t have access to the diversity of talent as those who are proactive in this space.

Stephen Moir, director of Moir Group

The short answer is most definitely.

A company, first of all, needs to know what it’s actually doing when it comes to sustainability and climate change.

For example, a consumer goods company we deal with came up with an initiative to run a program that looked at how they could save water through their supply chain. They asked people in their business if they wanted to be involved, and they were oversubscribed by almost four times. They weren’t just talking about a sustainability value; they acted on it.

And this isn’t just important for staff retention, but definitely staff attraction as well. If a company isn’t looking to address climate change, it’s very hard to attract good people.

So what do people look for? They look for an organisation that has sustainability built into their purpose and values. People are asking in interviews: what is it that you, as an organisation, are doing about climate change? And every business needs to be able to answer that.

Moir Group director Stephen Moir. Source: supplied.

Hareta McMullin, founder and people consultant at Third Space

The past 18 months has seen many re-evaluate their priorities, with action on key social issues top of mind. It’s clear that climate action is important to people, particularly Gen Z and Gen Y.

It’s becoming more important to employees to feel aligned with their employers’ values. In a climate where finding (and keeping) great talent is so competitive, businesses are shooting themselves in the foot by not taking a stance on sustainability and climate change.

In the coming years, I think we’ll start to see that climate action (and not just sentiment) is expected, much in the same way that we’re seeing flexible work arrangements as an expectation now.

To improve how attractive employers are to employees:

• Create/update a clear company policy that highlights the why, what and how. To have real impact, you can’t just wing it.
• Build the policy in to the fabric of your company conversations. It’s important that these words aren’t just words, so report on key metrics, gamify it and get your people involved and make it something they can be proud of.

Hareta McMullin, people consultant at Third Space. Source: supplied.

Nick Tucker, advisory lead at We Are Unity

Companies who are winning the war for talent are differentiating their employee value proposition around purpose.

A huge part of a progressive organisation’s purpose is their ESG priorities. Great talent wants to contribute more than just total shareholder return, they want to improve the world through their work.

With calls for climate action louder than ever before, sustainability is now a non-negotiable value for a lot of job seekers and businesses that can clearly demonstrate their credentials in this space will open themselves up to a larger pool of prospective candidates.

Many of our clients are seeing this play out in their attraction processes with prospective employees taking time to interview their employers about ESG and this will serve as a key battleground for the next phase of the war for talent.

We Are Unity advisory lead Nick Tucker. Source: supplied.

Kim Seeling Smith, CEO & founder of Ignite Global

The studies range from 25 to 75% but regardless of the exact figure, we know for certain that a significant number of Australians are at least considering other job opportunities within the next few months.

The last 20 months have allowed us to reflect on what we truly want in a job. And with Seek regularly breaking records for open positions, people have choice.

According to the research, one of the things that people want is to work for a company that makes a direct impact on the world and increasingly that means taking a stand and making an impact on climate change.

To attract and retain the best talent in the market, smart companies will include sustainability/climate action as one of their core business values — then back this up with action.

But it’s important to consider what action to take. Simply giving time off to attend climate rallies may not be enough so it’s important to ask them what they feel would be meaningful to them as individuals and for the company.

Give them choice — something else that research shows employees want — especially those who have endured months of lockdown.

Ignite Global CEO and founder Kim Seeling Smith.

Aaron McEwan, VP research and advisory at Gartner

To get to the heart of this question, we need to recognise that employees want to feel invested in their organisation and the work they do.

We also need to look at how the priorities of job seekers are evolving when they consider a new employer.

Gartner’s Global Talent Monitor tells us employees are searching for their “why”, with job-interests alignment now eighth in the list of reasons to join a new employer. Before the pandemic, this did not appear in the top 10.

This shift has created a challenge for organisations as employees increasingly expect fulfillment as integral to overall job satisfaction, and they’re happy to move to a different organisation if they aren’t getting it from their current role

As a result, organisations are being asked to take a stance on issues that matter to staff. When deciding on how they can make a difference, we recommend employers consult with staff and other stakeholders to ensure it feels true to the business’ identity and creates a shared sense of purpose as an organisation.

Most employees feel included when their organisations take action on societal issues, regardless of whether the employees approve of the action taken.

Given how Aussies feel about sustainability and climate action, it wouldn’t be surprising to see staff make this issue part of their consideration when it comes to their next role.

Gartner VP of research and advisory Aaron McEwan. Source: supplied.

Christopher Ouizeman, CEO of Drake International — Australia

As a society, our awareness of environmental issues has never been more heightened as we become more educated on the importance of preserving our environment. Employers must be aware of how their stance on environmental issues impacts their staff and their public perception. CSR investment has never been higher and public reporting on initiatives is now used by marketing as a meaningful differentiator.

The importance of an Employee Value Proposition (EVP) has come into sharper focus in recent years. High performing prospective employees want to work for organisations they can feel proud of, and this is intrinsically linked to their values.

An EVP should endear an organisation to their current and future employees. A key pillar we are seeing in an EVP is Work Environment and Culture and can typically include environmental and sustainable policies.

It’s one thing to have a policy, but employees need the opportunity to engage with such policies and support the cause. Some examples include marking key dates with education on certain environmental issues, kicking off carbon reduction program, offering a day to work at a selected sustainable charity, or running internal events or donations.

Employers need to show their willingness to improve and evolve but also need to empower the employees in having an impact so they too can connect to the cause. Those that do this well have a greater chance of attracting and retaining quality staff in what is a highly competitive labour market.

Drake International chief executive (Australia) Chris Ouizeman. Source: supplied.

Jessica Bilston-Gourley, founder of Positive HR

We’re observing many amazing businesses such as Who Gives a Crap and Thankyou who have social responsibility as part of their core business strategy. They recognise that tackling big issues like climate change benefits everyone — the community, environment and employees alike.

With the increase in remote work brought on by the pandemic, many employees feel disconnected and less engaged. Employees are wanting to be part of a larger force for positive change. We’re now seeing more and more employees looking to work for reputable, ethical employers who support their staff and improve their environmental footprint at the same time.

Employers who fail to recognise this will find it challenging to attract and retain great people. And that’s not all; employers must walk the talk. For those who have a social impact strategy, they must show how and what they are doing makes a positive and measurable impact on our world. The key to being a responsible employer is to be authentic.

Becoming a socially responsible employer is a lot easier than you think. Simple things like promoting car-sharing, cycling to work or local tree planting can make a big difference. You can also encourage employees to make donations to charity through payroll giving. Volunteer as a team or provide pro bono services to local charities and not-for-profit organisations.

Positive HR founder Jessica Bilston-Gourley. Source: supplied.

Steve Grace, founder and CEO of The Nudge Group

Having recently launched in the UK, we’ve noticed that climate action and sustainability is something that does come up quite a bit in terms of recruitment, but not so much here in Australia.

I think the reason for this is because of the sector we operate in. With the startup and scale-up space, most of these companies are often creating products or solutions with sustainability and climate action already baked into them. They’re not so much promoting it, as it is already part of their whole company ethos. These startup and scale-up founders are building companies where sustainability is a given, and in turn, they’re attracting candidates who see that as an important value.

We’re noticing a huge shift in people wanting to move from the corporate world to the start-up and scale-up space. The primary reason is because these people want to work somewhere where they can have an impact — often this is climate or sustainability-driven, and sometimes it’s because they want to work with a company that has a social conscience.

In short, although we’re not working with traditional corporates, we’re seeing a lot of people heading into our space with climate action and sustainability in mind — and companies that don’t have these values certainly may be missing out on valuable talent.

Steve Grace, CEO and founder of The Nudge Group. Source: supplied.

Teresa Romanovsky, director of opportunities at Careers for Purpose

With the rapid rise of plant-based products, from food to sports shoes, cell cultured proteins, renewable energy investment and the global awakening to climate change, I’m hearing loudly from candidates that being part of a mission driven organisation is high on their priority list.

Job satisfaction alone is no longer meeting the growing desire for people to find a greater purpose in life. And as most of us have to work for a living, being able to marry one’s personal ethics with the work one produces and the impact that will have on people and planet, this is the new goal to bring meaning to our careers.

A ‘Corporate Social Responsibility’ policy is no longer good enough. Employees are turning away from organisations that contribute to planet destruction, regardless of whether they donate profits to admirable causes or allow their staff volunteer leave.

Employees are seeking roles and organisations where at their essence they are solving a planetary problem and not just making grand statements for shareholders — but every company can do more even if their product or service doesn’t directly solve an environmental issue.

Careers for Purpose director of opportunities Teresa Romanovsky. Source: supplied.

Cameron Shepherd, director of Shape HR

COVID-19 has led to the “great contemplate” where people are reconsidering what they want from life and they want to do work that feels congruent with their values.

Nearly three quarters of Australians believing that our country is not doing enough for climate change. That means that it will be up to businesses to fill the void and prove that they take the matter seriously. More and more people are leaving their jobs to work with companies who demonstrate they care about the planet. Businesses who are late to the party simply won’t have access to the diversity of talent as those who are proactive in this space.

Whether it be granting employees additional days of community service leave do volunteering, getting them involved in local procurement projects or providing donations to charitable causes close to the employees hearts, employers should be thinking about how they can involve their people in making a commitment to a sustainable future.

Shape HR director Cameron Shepherd. Source: supplied.