A company's commitment to
Approximately 20% of employees have changed jobs or industries for one that better matches their environmental values, and another 25% plan to do so in the future, according to a Deloitte survey. An increase in a company's commitment to sustainability efforts also has a direct correlation to employee
At human capital management platform Paycor, sustainability practices are built into the company's benefits, policies and programs, making them a visible part of its core values, and helping to retain employees along the way.
"You want to work for a company where you feel you understand what the goals are, and you know when things are going well and when you have areas to improve on," says Paaras Parker, CHRO at Paycor. "As companies invest in things that are really important to our employees, it's allowing us to diversify and also helping people see all the different ways that they can give."
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Parker conducts annual benefits surveys to determine what to prioritize and what to discontinue in the way of ESG, then communicates decisions with the workforce. Internally, Parker conducts employee surveys from which her team gleans an understanding of what matters most to employees. The company also publishes an annual ESG report, which shows their workforce and the public where they stand on their efforts and goals, and how these things fit into their short and long-term business practices.
"You learn the most from when you have a misstep, and companies are the same," Parker says. "Being open and intentional keeps the stories fresh and real."
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Paycor had six primary areas of focus for 2023: Energy management, customer privacy, data security, employee engagement, diversity and inclusion, business ethics and systemic risk management. An example of success can be seen in their energy usage results, which showed a dramatic reduction since 2021 in total electricity used in their two colocation data centers. In the category of engagement, a company survey found that 77% of associates were engaged — far surpassing the 33% average reported by Gallup at the end of last year.
While younger generations have voiced an increased desire to work for companies that support their social and environmental values, Paycor's ESG efforts are designed to connect with their entire workforce population, says Parker.
"We view ESG as generation-agnostic," she says. "As an organization, investment in ESG is a core strategy to improve business outcomes and keep our associates engaged, regardless of demographic or background. It's simply the right thing to do."
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Not every company will have the means to invest in big-picture ESG initiatives, but starting small can have outsized impacts, too. For example, reducing the amount of printers in an office to cut down on ink and paper waste and adding recycling bins to each room can be a great start, Parker says.
Paycor has also benefited from the shift to remote work — not only has it reduced its facilities by more than 70%, it helped them expand participation in their community impact fund to all employees, regardless of location, says Parker. Employees have donated to causes like education, workforce readiness, health and human services, the environment, arts and culture and people with disabilities, and the fund provided 70 grants and contributed over $400,000 in funding last year.
"Through the Paycor Community Impact Fund, employees find nonprofits they are really passionate about, and can elect to have a portion of their paycheck go into the fund each month," Parker says. "Every quarter, donors to the fund vote on who gets grant money from us. When you're able to tie that into how you talk about ESG, that's huge — your company is allowing you to learn how to be philanthropic, and showing you they care about nonprofits and the communities in which you live."
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Whether it's a small employee resource group focused on positive change or a company event that captures high levels of participation, these things add up to create an ongoing feeling of satisfaction for people looking to be part of something good at work.
"Really think about how the people in your organization bring [ESG] to life every day, and share those stories," Parker says. "Showing your employees you see the work they're doing goes a long way to current employees and people who might be checking out your company to see if it's a place they can find a work home."
