In today’s rapidly evolving business landscape, attracting and retaining top talent has become a critical priority for organisations. To succeed Boards of Directors and HR Leaders must recognize the increasing influence of Generation Z (Gen Z) in the workforce. Gen Z employees, born between the mid-1990s and early 2010s, bring a unique perspective and values to the table. One such key area of importance for this generation is Environmental, Social, and Governance (ESG) factors. In this article, we delve into the reasons why prioritising ESG practices is essential for Boards of Directors and HR Leaders when it comes to recruiting and retaining Gen Z talent.


Understanding Gen Z’s Values:

Gen Z individuals are socially conscious, environmentally aware, and focused on making a positive impact. They are deeply concerned about global issues such as climate change, social inequality, and ethical business practices. Gen Z expects organisations to align with their values and actively contribute to addressing these challenges. By incorporating ESG principles into their corporate strategies, companies can demonstrate their commitment to sustainability, social responsibility, and good governance, thereby attracting Gen Z employees who are passionate about these issues.

Attracting Gen Z Talent through ESG:
ESG considerations are increasingly becoming a decisive factor for Gen Z when considering potential employers. To successfully recruit Gen Z talent, Boards of Directors and HR Leaders must highlight their organisation’s ESG initiatives and their dedication to creating a positive impact. Companies that can showcase transparent reporting on environmental initiatives, sustainable supply chain practices, social impact programs, and ethical governance structures will undoubtedly have an edge in attracting Gen Z applicants. By actively promoting ESG practices, organisations can position themselves as desirable employers for this values-driven generation.


Retaining Gen Z Talent through ESG:

Retaining Gen Z employees goes beyond the initial attraction. Boards of Directors and HR Leaders must create an inclusive and purpose-driven work environment that aligns with Gen Z’s values. ESG initiatives provide an avenue for fostering employee engagement, satisfaction, and loyalty. Gen Z individuals are more likely to stay with organisations that offer opportunities to contribute meaningfully to social and environmental causes. By involving Gen Z employees in decision-making processes related to ESG practices, companies can empower them and create a sense of purpose, resulting in increased retention rates.


ESG as a Business Imperative:

Prioritising ESG practices not only caters to the preferences of Gen Z but also serves as a strategic business move. Organisations that embrace ESG principles often experience improved brand reputation, enhanced customer loyalty, and increased shareholder value. Furthermore, ESG-focused companies are better equipped to navigate potential regulatory and legal risks, adapt to changing market dynamics, and foster long-term sustainability. By integrating ESG considerations into their overall business strategy, Boards of Directors and HR Leaders can drive organisational success while attracting and retaining Gen Z talent.


The rising influence of Gen Z in the workforce necessitates a shift in how organisations approach recruitment and retention. Recognizing the significance of ESG factors and integrating them into corporate practices is crucial for Boards of Directors and HR Leaders. By embracing ESG principles, organisations can attract Gen Z talent, align with their values, and foster a positive and purpose-driven work environment. Additionally, prioritising ESG practices yields strategic benefits, ensuring long-term success in an ever-evolving business landscape. The time to prioritise ESG is now, as it unlocks the potential of Gen Z talent and propels organisations towards a sustainable and prosperous future.

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Greg Weiss

Greg Weiss

Founder and CEO

Greg Weiss is known as one of Australia's most experienced recruitment experts and HR consulting professionals. Greg founded Impactful People helping to create a better world, one placement at a time. 

Greg has helped 100s of businesses with their people needs and coached over 1,200 people improve their careers through Soulidify and  Career365.

If your business employees Gen Z and Millennials, then you need to demonstrate your commitment to how you positively impact on the world. You do that by living through ESG values.  If you want to demonstrate real commitment to ESG through recruiting people who can strengthen that capability, then Greg can show you how.