Deloitte Survey Shows Younger Generations are Driven by ESG and Climate Concerns
The modern workforce is undergoing a significant transformation as younger generations step into the spotlight, bringing with them a distinct set of values and priorities that challenge conventional notions of employment. Deloitte's recent report, titled "The Shifting Workforce: Exploring the Impact of ESG and Climate Concerns on Gen Z and Millennials," highlighted that the newer generations are leaving jobs due to misaligned ESG values and ESG concerns. Here, we will highlight some of the key takeaways from the report.
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The biggest highlight is that climate change and environmental sustainability are already becoming deal-breaking factors for millennials and gen z people who are looking for jobs, and it’s expected that this will only increase. Organizations that are not performing in those areas are likely going to see challenges in employee retention and attraction. Younger generations, namely Generation Z and Millennials have an unwavering commitment to ESG principles and environmental sustainability. These individuals view their employment choices through a lens of purpose and seek organizations that prioritize sustainability, social responsibility, and ethical governance. Sustainability and ESG is no longer a single report at the end of the year, it’s a requirement to address ESG and Sustainability concerning the planet, people, and culture within your organization.
Let’s break down the numbers:
Deloitte's survey indicates that 82% of Gen Z and Millennials consider an organization's ESG commitments when deciding where to work. They actively seek employers who demonstrate a genuine dedication to environmental sustainability, social impact, and responsible governance.
The report continues to highlight that ESG and climate concerns significantly impact employee retention. Approximately 64% of surveyed Gen Z and Millennials report having left a job due to misalignment with their values. This clearly indicates a growing dissatisfaction with organizations that fail to address environmental and social issues, leading to increased turnover rates.
Organizations that do prioritize ESG and climate concerns will gain a competitive advantage in attracting and retaining top talent. Young professionals, as we have seen in this survey, are actively seeking out employers who demonstrate a strong commitment to sustainability and social responsibility, often favoring them over higher-paying positions with companies that lack such values.
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Michele Parmelee, Deloitte Global Deputy CEO and Chief People and Purpose Officer, said:
“They’re looking for employers who can help empower them to make a difference. Organizations that actively listen and help address their needs and concerns will improve business resiliency and implement actionable change in our world.”
Deloitte's report heavily emphasizes the importance of integrating ESG principles into the core fabric of an organization's culture. By adopting sustainability practices, promoting diversity and inclusion, and prioritizing ethical governance, companies can create an environment that resonates with younger generations, fostering employee loyalty and engagement.
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In summary, the workforce is experiencing what one could call a seismic shift driven by the values and priorities of younger generations. Millennials and Gen Z are no longer asking, but instead demanding a change and voting with their employment. ESG and Sustainability are extremely important topics for a plethora of reasons, and now added to the docket is that it’s even shaping job preferences and driving professionals to seek organizations that align with their values. To attract and retain the best talent, businesses must adapt to these changing dynamics by integrating ESG principles, fostering a purpose-driven culture, and demonstrating a commitment to sustainability and social responsibility. By doing so, they can effectively navigate the evolving job landscape and harness the transformative potential of the emerging workforce.
Sources:
Deloitte. (n.d.). The Shifting Workforce: Exploring the Impact of ESG and Climate Concerns on Gen Z and Millennials. Retrieved from https://www.deloitte.com/global/en/issues/work/content/genzmillennialsurvey.html
ESG Today. (n.d.). Over 40% of Gen Z & Millennials Would Switch Jobs Over Climate Concerns - Deloitte Survey. Retrieved from https://www.esgtoday.com/over-40-of-gen-z-millennials-would-switch-jobs-over-climate-concerns-deloitte-survey/
