Transparency around corporate governance policies and environmental and social issues, such as climate change and diversity, equity and inclusion, has become essential for hiring and retention as job seekers jobs are looking for employers whose values match theirs.
“If you’re not forward-thinking and addressing ESG issues, your employees, regulators or consumers will really start to notice,” says Jaimee Eddington, partner at executive search firm Heidrick & Struggles. She advises making sure interviewers represent the ethnic makeup of the entire company and including diversity leaders in hiring conversations, as this communicates DEI’s commitment to talent. “If they don’t meet anyone of diversity, how are they going to feel accepted? said Eddington.
Similarly, hiring a sustainability manager and including them in recruitment can demonstrate a climate-conscious culture. Finally, openly communicating the processes behind board, accounting, legal, culture, and hiring decisions can help employees feel engaged and promote retention. Recognizing areas for improvement and demonstrating ESG progress can have more impact than trying to prove perfection. “People want to see progression,” Eddington says. “They want to see that they’re getting to a place that’s better.”