Corporate ESG and Employee Recruitment

Companies’ environmental, social, and governance (ESG) credentials are becoming increasingly important to attract, motivate and keep the best workers. According to new research, 45% of job seekers want to see a corporate commitment to sustainability when choosing an employer, and 55% are looking for high ethical standards.

These statistics refer to the “E” and “G” in ESG, respectively. But what about the “S” in ESG—a company’s social commitment? What exactly is corporate social responsibility, and how important is it for today’s employees and job seekers?

What is a Company’s Social Commitment?

Traditionally, a company’s social commitment refers to its efforts to develop a strong workplace culture and improve employee satisfaction, diversity, workplace conditions, and health and safety.In recent years, the definition has broadened to include the concept of employee well-being: how an organization protects and improves employees’ physical, emotional, and financial wellness. The reporting expectations among ESG authorities pertaining to well-being in the workplace and employer roles are also increasing.

Why is Employee Well-Being Now Part of a Company’s Social Commitment?

For decades, many organizations viewed employee well-being as a nice-to-have initiative rather than a workplace necessity. Historically, it hasn’t been considered the employer’s responsibility, but rather something managed by the employee.

Over the last five years, expectations have shifted and organizational leadership has become more accountable for proactive well-being promotion and intervention. The impact of the pandemic on the global workforce significantly accelerated this transformation.

Unprecedented levels of employee turnover and the rising cost of living have spurred business leaders to take action to improve retention through benefits that support employees in aspects of their lives beyond work. Financial well-being is one such area. According to recent research, 85% of businesses feel a strong sense of responsibility for their employees’ financial well-being, up from 59% in 2013. Many employers have already turned their intent into action, with 43% saying they already offer a program dedicated to financial well-being.

Why it Matters

The rewards of investing in employee wellness are compelling: the more happy employees are, the more likely they are to stay in the company. Once a wellness initiative is promoted in an organization, company culture and mindset often begins to shift. Employees feel more valued, they place more trust in their employer, and overall morale goes up within the organization.

Investing in people’s holistic well-being also indirectly impacts employee recruitment efforts: 87% of employees consider a company’s health and wellness offerings when choosing an employer.

Wellness benefits also help with employee retention. When organizations show genuine care and support for their team members’ mental and emotional well-being, it fosters job satisfaction and loyalty.

The 3 Pillars of a Modern Employee Well-Being Strategy

A robust wellness strategy blends well-being across three domains to effectively bridge environmental and societal factors: work design, workforce benefits, and physical workspaces.

1. Work Design

Technology and location are the two main enablers for integrating well-being into the design of work. Interventions might include:

• Flexible scheduling
• Systems for collecting and communicating feedback
• Using technology to promote collaboration
• Giving workers more autonomy in how they do their work
• Keeping your teams well-staffed

2. Workforce Benefits

Employers should invest in the right mix of benefits, programs, and policies to improve employees’ physical, social, professional, emotional, and financial well-being, such as:

• Employee and family assistance programs
• Financial wellness education, resources and on-demand pay
• Psychological care benefits
• Equity, diversity, inclusion, and belonging initiatives
• Enhanced leave policy
• Skills training programs

3. Workspaces

Given that the average person will spend 90,000 hours at work over a lifetime, the spaces we inhabit at work have a profound impact on our well-being. Forward-looking employers are providing access to physical spaces designed with people’s well-being at the center.

Enhance Your Employee Well-Being Commitment with Payactiv

Companies prioritizing employee well-being as part of their overarching ESG performance will have the upper hand over competitors in the war for talent and employee retention.

Payactiv, the leading provider of employer-integrated holistic financial wellness benefits, is the partner of choice for companies seeking to make meaningful strides in supporting their workforce. We’ve created an easy way for organizations to give their employees timely access to their earned pay, helping them manage day-to-day finances without worry. Employees also benefit from Payactiv’s free budgeting, financial counseling, and savings tools.

Learn more about how Payactiv’s Service can boost recruitment and retention for employees, or book your demo now.

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