Attracting the Next Generations: The Role of Environmental, Social, and Governance (ESG) Initiatives in Modern Employer Branding Strategies

This thesis explores the role of Environmental, Social, and Governance (ESG) initiatives in modern employer branding strategies, focusing on attracting talent from Generation Y and Z. The research aims to clarify how ESG factors influence the job preferences of the next generation and how can companies effectively integrate these principles into their talent management practices. The study combines insights from a literature review with empirical research involving a quantitative survey of young adults and qualitative interviews with HR professionals. The findings reveal that ESG factors increasingly shape the job selection preferences of Generation Y and Z candidates, with a positive relationship between the candidate’s ESG valuation and its impact on job choices. Notable gender differences in ESG perception were observed, but no significant differences between Generation Y and Z. Transparency and active communication of ESG efforts emerged as crucial factors in employer attractiveness. The interviews highlight the increasing expectations of younger generations and the importance of an authentic Employee Value Proposition reflecting a genuine commitment to ESG. Companies are at various stages of incorporating ESG into their employer branding, with all expressing a desire for further development. The research emphasizes the need for companies to authentically integrate ESG into their employer branding and effectively communicate their efforts to gain a competitive advantage in attracting young talent. Recommendations include prioritizing ESG in the EVP, addressing shifting expectations of Generation Z, and leveraging transparent communication channels. Future research could focus on enhancing generalizability, investigating actual job choice behaviour, and developing comprehensive frameworks for ESG integration.