Sustainability and corporate social responsibility (CSR) are no longer new
concepts in the world of business. However, the authenticity and
institutionalization of sustainability and CSR have yet to be fully leveraged to
benefit businesses, communities and the environment. A number of drivers push
businesses to integrate sustainability principles, and one of those drivers
should be the changing workforce and employee expectations.
I began writing this article prior to the COVID-19
outbreak.
Over the past month, over 20 million
people
in the US have become unemployed — and many more changes are to come. How this
pandemic will impact the future of workforce development is yet to be seen, but
it truly serves as an opportunity to scale the pace of evolution necessary for a
more sustainable future.
Prior to the pandemic, low unemployment across the country meant businesses were
competing for qualified staff. A Wisconsin-based PBS
report
depicted this reality on a local level: “In Wisconsin, ‘Help Wanted’ is on
virtually every restaurant window, storefront and city bus. With an aging
population and few immigrants, the state could have a shortage of 45,000 workers
by 2024, which could pose a threat to business.”
This swift change in the workforce and employment as we know it has offered a
pivotal consideration for individuals to reconsider their career trajectories.
I’ve heard this primarily from Millennials — the largest generation
currently represented in the US workforce. With many workers now isolated at
home, now is a crucial time for leaders in the private sector to accelerate
their sustainability initiatives in order to engage and retain employees moving
forward.
The numbers behind an evolving workforce
In this new normal of uncertainty, it is time to familiarize yourself with the
values of your future employees and to build business sustainability strategies
around them. According to Employee Benefits
News,
in 2017, employee turnover costs employers 33 percent of an employee’s annual
salary. With about 40 percent of Millennials expecting to leave their current
job within two
years,
those costs add up quickly.
In addition to Millennials, employers need to plan for future generations of
workers such as Gen Z’ers. Described as
authenticity-obsessed,
motivated by meaningful work and the most entrepreneurial generation yet, Gen Z
will soon make up 30 percent of the US
workforce.
In fact, numerous factors have influenced and will continue to influence this
generation and others, as well as what they expect from employers and their
workplaces. Factors such as the already-felt climate crisis, economic
volatility, and instant global connectedness to humanity have systematically
impacted the values of younger generations, and shouldn’t be overlooked.
Looking inward to push change outward
My Sustainable Management program team at UW
Extended Campus is plugged into the needs and stories of Millennials and Gen
Z’ers on a daily basis. In fact, I recently had the opportunity to guest lecture
at UW-Madison in a sustainable business course, and the lecture hall was
filled with Gen Z’ers. I’ve lectured in this course for a handful of years, but
this time was different. The students were actively engaged from the moment they
walked in. When questions or comments arose during the lecture, they didn’t
hesitate to raise their hands and prompt discussion. Even more, they were
opinionated, diplomatic and respectful (lessons for all!); and they were
genuinely concerned about how their career trajectory would align with their
personal values. I left that lecture energized and confident that we as a global
community can find solutions to our most massive systemic problems.
Sustainability and CSR are directly and indirectly important for businesses.
Integrating these principles into your business strategy will help you better
attract, engage and retain great
talent.
However, it should be noted that while we often focus on how Millennials and Gen
Z’ers are changing the typical workplace, sustainability isn’t an exclusive
concern to those born after 1980. Employees across all generations increasingly
care about sustainability in the workplace, through supply chains, in marketing
materials, and more.
If you want to build resiliency and a competitive edge in your organization
given the changing generational expectations, here are some ways to start:
1. Communicate updates of your sustainability commitments.
According to a 2016 Cone Communications
study,
88 percent of Millennials want employers to share details of their CSR
commitments. This means employees want to be in the know when it comes to
decision making. You can do this by being transparent about what you’re
strategically planning, what isn’t being prioritized (and why), and what
employees can expect from your sustainability goals moving forward. A number
of reporting structures exist for organizations to consistently and
accurately report their sustainability progress (ex: Global Reporting
Initiative, B Corp
Assessment,
CDP).
2. Be active. Be honest. Be real.
Since the world has momentarily slowed down due to COVID-19, now is the time
for business and organizational leaders to take a beat and consider what
they want the future of their business to look like. When disruption occurs,
put strategies and game plans into place that will allow you (and all
stakeholders) to emerge stronger on the other side.
When you’re up and running again, engage your employees in an honest way. Be
upfront with them about your sustainability struggles and where they can
help find solutions for your organization. Be real with what you share
internally and externally. There is greater harm in putting out false claims
of sustainability achievements than being transparent about your successes
and where you’re still evolving.
3. Authentically engage your employees!
Earth Week celebrations and employee competitions are great ways to start;
however, employees are looking for meaningful ways to engage their personal
values with colleagues and organizational leaders year-round. Leverage this
enthusiasm and yearning for meaning in the workplace for strategic
organizational benefit.
Nearly 90 percent of the Millennials that Cone surveyed in 2016 said they wanted
opportunities to help their employers reach CSR/sustainability goals; to provide
feedback and offer solutions to these efforts; and to participate in hands-on,
environmental activities in the workplace. The lesson here? Listen to your
employees, and build a space where they feel heard. This can inform your next
steps in sustainability planning; and you may be surprised by how many employees
and peers will be up for streamlining the process by pitching in some time and
ideas.
4. Catch up, then lead.
You may feel like you’ve been jolted ahead several years with your
telecommunication plan and remote work policy during this pandemic. Utilize
that same leap forward and flexible mindset to elevate your sustainability
commitments. The day will come when integrating a better way of doing
business (through a lens of sustainability) will no longer be optional, but
vital. Those who adapt sooner have countless competitive advantages and will
help chart the course for those still on the fence. Get inspired through
taking a BCorp assessment or survey
through our Green Master’s Program
application.
A not-so-distant tomorrow
What is important to understand during this uncertain time is how humanity
collectively experiencing a pandemic has shined a light on systemic issues —
such as the climate crisis, inequality, supply chains and more. Now and
increasingly into the near future, employees will look for employers who will
understand and align with their motivations beyond their everyday work.
It is advantageous for organizational leaders to use this unprecedented time to
slow down, think deeply; and plan how they can attract, engage, and retain
talent to build toward a better future.
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Program Manager, UW Extended Campus
Amanda Goetsch is the Program Manager for UW System's Undergraduate and Graduate Degree Programs in Sustainable Management.
Published Apr 19, 2020 8pm EDT / 5pm PDT / 1am BST / 2am CEST