By Meredith Graham, Chief People Officer, Ensono
Today’s employees want more than just perks. Focused, authentic ESG efforts will position your company to deliver.
The talent shortage and mass employee migration dubbed “the Great Resignation” is not over for the technology sector—not by a long shot. Tech companies need to examine what makes them competitive employers to today’s limited and choosier talent pool if they want to succeed in finding the talent they need to thrive.
A recent Forrester Total Economic Impact™ (TEI) (see infographic) report that 74 percent of surveyed executives are planning (or have already started) to counter the talent scarcity and higher costs resulting from the Great Resignation by improving employee experience and retention. While most companies are raising compensation and adding attractive benefits, many are overlooking a key player in attracting and retaining talent—a reputation in the ESG sphere. ESG (short for “Environmental, Social and Governance”), has already become a rallying cry for investors looking to put their money where their values are, but it would be short-sighted to think that the value of a company’s ESG efforts stops there.
Many employees today, particularly younger generations like Millennials and Gen Z, want to work for organizations whose values match their own—or at least aren’t in opposition. For many, this means a company with a proven interest and efforts in ESG will be a more attractive employer.
So where do you start when it comes to making your ESG efforts? Focusing on one step at a time in one area is a good start. You cannot be perfect at everything all at once. So if you’re starting down the path towards a good ESG effort, pick one thing you want your company to be known for, and then pick one realistic goal you think you can achieve towards that end in a year.
Even the smallest gesture can have a significant impact. Take for example your company’s hardware—if you refresh laptops every five years, instead of letting them sit in a landfill, wipe them and donate them to a charity. That’s a huge help. Switch out regular lightbulbs for LEDs. Every effort adds up and shows you are putting thought into your environmental footprint.
For tech companies like Ensono, data centers are often the biggest energy users and the greatest opportunity to reduce their environmental impact. At our data center in Downers Grove, Illinois, we have significantly improved our Power Utilization Efficiency (PUE) by replacing infrastructure, shutting down unnecessary equipment, and enhancing controls. The result? A reduction of 1,100,000 kWh per year.
Beyond making these efforts within your own company, you also need to get out there and make your voice heard if you want to gain an ESG edge in the war for talent. The Climate Pledge is currently circulating, which a lot of companies have signed. It needs to be clear that this is something your organization cares about and will continue to care about. This isn’t a fad for employees, so they need to know you are committed.
Of course, caring for the environment is only the E in ESG. The other big values motivator for employees—and potential employees—is social justice, or diversity, equity and inclusion (DEI).
Diversity isn’t just a buzzword that will generate follows on your company’s social media accounts—it is a proven advantage for any business. According to McKinsey & Company, businesses in the top quartile for gender diversity perform 15 percent better than their peers, while businesses in the top quartile for ethnic diversity perform 35 percent better. And when it comes to attracting talent, especially among Millennials and Gen Z, diversity initiatives are a must. Simply put, DEI is not just altruistic and the right thing to do, but also a wise business decision. This is another effort at which you cannot be comprehensively perfect. Taking small steps toward one goal is a good start.
We knew we wanted to focus on diversity, specifically women in tech. But in order to get there, we had to start at the beginning, with inclusion. Without an inclusive environment, how can you retain a diverse workforce even if you manage to hire them? We started by getting the conversation going on unconscious bias. Every company has it so we started training on how we could remove that from the interview process and the performance process.
Ensono also worked to cultivate a culture that reflects diversity of experiences and viewpoints, allowing all voices to be heard and encouraging employees from every corner of the organization to contribute. It’s a win-win opportunity, with employees feeling valued and our company benefiting from a range of ideas that can contribute to our collective success. This approach has worked for us and has earned us a reputation as an ally for women in tech. It started with a campaign called, “Speak Up: Bringing More Women’s Voices to Tech Conferences,” which called attention to the scarcity of female speakers and attendees at tech conferences. By amplifying this issue, we hope to help reverse the trend and give women equal voice in tech. It’s a belief that we are manifesting in the hiring process—with 22 percent of associates identifying as female, we are just three percent behind a 2025 target of a 25 percent female workforce.
The last part of ESG—governance—is less important outwardly to candidates and employees, but if you are hoping to implement effective environmental and social programs that have a lasting impact on your company, you’ll need to make sure your house is in order. Ensuring proper oversight for hiring practices and regular audits for environmental efforts, not to mention keeping in line with the newest proposed SEC disclosure rules, all involve buy-in from the highest level. It’s not just important that your company be seen as environmentally friendly or socially conscious—it must actually be all these things. Employees can tell the difference and will act on what they discover. Lastly, ESG fraud is something your company can face penalties for, so it’s in everyone’s best interest to walk the walk.\\
ESG isn’t going away. People are making investing decisions based on it, and they’re deciding where to work—and where not to work—based on it. You have to match your employees’ and talent pool’s values if you want to stay competitive as an employer today. The tech talent shortage is real and is not letting up any time soon.
