The ‘S’ in ESG – Transforming Employee Wellbeing into a Strategic Priority
In recent years, the corporate world has witnessed a shift in focus towards Environmental, Social, and Corporate Governance (ESG) principles.
More than just a trendy buzzword, ESG represents a comprehensive framework for evaluating a company’s environmental impact, social responsibilities, and corporate governance, with the ‘Social’ pillar, encompassing employee wellbeing, taking centre stage. What was once considered merely an initiative, has now evolved into a social responsibility as Australians recognise the vital role that employee wellbeing plays in fostering sustainable and thriving businesses while positively impacting society.
So, other than being the right thing to do for our employees, what are the other benefits of prioritising worker wellbeing?
Attracting and Retaining Talent
In an era where attracting and retaining top-tier talent is challenging, businesses simply have to set themselves apart. Prospective employees seek out companies that not only acknowledge the value of their workforce but also invest in their wellbeing and growth. Incorporating employee wellbeing as a cornerstone of your ESG strategy not only provides a competitive edge but also strengthens employee retention.
Boosting Productivity and Engagement
Embracing employee wellbeing as a core principle can be a game changer for workplace productivity and engagement. The connection between employee support and performance is consistently evident in various industries. Salesforce is a prime example of a company that has seen boosted productivity since prioritising workplace wellbeing.
Placing a strong emphasis on employee wellbeing by offering comprehensive benefits such as mental health support, wellness programs, and a family-friendly work environment, Salesforce’s commitment to creating a positive workplace culture has not only attracted top talent but has also resulted in remarkable productivity gains.
Employees at Salesforce report higher job satisfaction and a sense of purpose, which directly translates into increased engagement and innovation. The company’s strong focus on employee wellbeing has not only led to greater success but also positioned them as a model for socially responsible business practices.
Appealing to Investors
Investor interest in businesses with a robust ESG strategy is not a passing trend. An ESG-conscious approach, coupled with an emphasis on employee wellbeing, has become pivotal in influencing investment decisions. Prospective investors view businesses that value their workforce and champion wellbeing as inherently attractive.
Beyond its role in appealing to potential new hires, a strong ESG strategy bolsters a company’s reputation, resonating positively with investors who recognise the long-term value of sustainable, socially responsible practices.
So, we know prioritising employee wellbeing boosts productivity and engagement, attracts top-tier talent and makes companies more appealing to potential investors. But how does one go about implementing a wellbeing strategy?
Want to find out how to incorporate employee wellbeing into your ESG Strategy? Get in touch
Salesforce’s Prioritizing Our People Impact Report:https://stakeholderimpactreport.salesforce.com/social/prioritizing-our-people
Investopedia’s Definition of Environmental, Social, and Governance (ESG) Criteria: https://www.investopedia.com/terms/e/environmental-social-and-governance-esg-criteria.asp
Business & Human Rights Resource Centre’s Article on Employee Well-Being as an Emerging ESG Issue: https://www.business-humanrights.org/en/latest-news/employee-well-being-is-an-emerging-key-environmental-social-and-governance-esg-issue-for-companies-and-investors/
Lukas Kay’s LinkedIn Article on the Importance of Employee Wellbeing: https://www.linkedin.com/pulse/importance-employee-wellbeing-lukas-kay/
