ESG: From Recruitment to Procurement
From video calls to AI, commercial game-changers have a habit of looking decidedly niche when they first appear on the scene. Now it’s hard to imagine an organization being able to get through the day without Teams or Zoom.
ESG is having its moment too. It’s just that not everyone has realized it yet.
From obvious to everywhere
Some sectors have been pushing hard on ESG (environmental, social, and governance) for well over a decade: tech and energy got in early, and consumers are starting to recognize accreditations such as B Corp. This isn’t just about business anymore – it’s bigger than that.
Still, it’s tempting to focus on the ‘E’ without digging into the ‘S’ and ‘G’ – even though they’re often where businesses can get the most value. How? When organizations centralize the way they collect, curate and report recruitment data, they unlock gains that
stretch from attracting talent to winning bids. But first, let’s explore how to get to the data in the first place.
ESG data – where to begin?
Even the largest companies often take a step back when it comes to gathering workforce-related ESG data. However, this part of the process is vital. Without it, the necessary insight simply isn’t there, putting corporate reputations and investor confidence at risk.
The answer? For those organizations who have adopted a managed service provider model, there’s a growing trend: hand the task to the MSP. There’s sound logic at play. After all, the provider is already gathering applicant data. In the simplest terms, all it needs to do is gather some more.
Then, with someone else handling the data capture and analysis, the HR and Procurement teams can forget about having to invest in new systems and people.
It’s an instant win: when all this data is channeled through a single workforce provider, you not only make highly-informed recruitment decisions – but equally sound commercial decisions that are in-line with your sustainability goals.
Attracting talent, challenging preconceptions
When organizations look to embrace ESG, they’re often concerned about the effects on profitability. And yes, there will be effects: just not in the areas many assume.
That’s because ESG can dramatically boost the employer value proposition, which in turn helps cut recruitment costs and boost retention. (We’ll come back to address some broader commercial benefits later.)
Job seekers, particularly millennials and Gen Z, look for employers who take sustainability and social responsibility seriously. And with many markets still experiencing a lack of skilled labor, candidates have the freedom to act on their principles.
There’s no shortage of information for candidates to gather. Platforms such as Glassdoor play a significant role in shaping what prospective employees think about your organization: authenticity and transparency are the very least people expect. If you’re not shaping and talking about your own ESG success, commentators on social media will gladly fill in the gaps.
Bid-winning propositions.
Bid-winning insights.
Sustainable supply chains are here to stay. Over time, they’re only going to gain more weight – and more importance to the final bid score.
By creating a recruitment strategy that integrates ESG principles, businesses not only attract quality talent, but also mitigate risks around non-compliance and reputational damage. The key: a rigorous recruitment process that prioritizes due diligence and transparency.
No missteps, no oversights, no shadows where problems can hide. But the real benefits are in the positives – not just avoiding negativity.
When you build processes to collect and analyze recruitment data, you start a virtuous cycle, leading to more informed decisions and more actions that reflect your commitment to ESG.
Done right, workforce-related ESG wins business on your behalf – as well as winning you the hearts and minds of skilled, in-demand candidates who share your values.