Sustainability and environmental consciousness have been on the minds of business leaders, investors, and stakeholders over the past years. However, recent data on the sustainability goals of UK businesses indicate a problem: As British companies struggle against higher energy prices and other rising business costs, many are unsure they can meet their sustainability goals.
Almost three-quarters of more than 500 business leaders surveyed said their firms were forced to compromise on sustainability efforts for cost management. Likewise, 61% of businesses cite rising energy prices and other business costs as hindrances to their sustainability goals.
However, the future doesn’t necessarily have to be bleak. By leveraging human resources teams and departments, businesses can still aim to achieve sustainability goals through workforce-centered initiatives and programs. Insights on human resources by LHH highlight that HR teams can be a big differentiator for business growth. Experienced HR teams can help connect businesses with employees that align with sustainability values and goals, ensuring the workforce remains diverse with skilled professionals.
Below, we’ll look at some of the ways HR plays a significant role in sustainable business development:
Talent acquisition
One of the key responsibilities of a business’s HR team is recruiting and onboarding employees who align with the company’s values. Thankfully, job seekers today reflect the growing need for sustainable business development. According to Airswift’s Global Energy Talent Index 2022, four in five workers in the sector say that ESG issues are a factor in whether they will remain in or resign from an organisation.
Similarly, more than half of those working in oil and gas have expressed interest in moving to the renewable energy sector. As such, HR departments play a crucial role in communicating an organisation’s sustainability commitments and goals to attract top talent — from clearly communicating job descriptions to building a talent pipeline that matches a business’ sustainable goals.
Training and development
Of course, the work extends beyond recruitment and onboarding. Today, organisations must invest in ongoing training and development for their workforce. This helps foster a culture of sustainability while keeping employees engaged through educational and relevant initiatives such as events and forums.
We’ve previously written about SEKO’s commitment to investing in human capital as one of many ways the logistics company can navigate challenges in the global economy. Just this year, SEKO established the Women in Logistics Leadership employee resource group to empower women within the organisation and foster their personal and professional growth. For businesses in the process of cost optimisation, talent development is key to ensuring current employees are included in business transformations and development.
Diversity and inclusion
Finally, HR plays a significant role in establishing diversity and inclusion throughout a company. More recently, businesses have focused on integrating diversity and inclusion initiatives into their sustainability goals.
To achieve this, HR promotes diversity practices as early as the hiring stage and even as employees climb up the corporate ladder. Many top organisations today offer D&I training for all employees to help address concerns such as unconscious bias. By focusing on diversity and inclusion as an integral part of sustainable development, businesses can keep themselves accountable throughout sustainability initiatives by preventing important issues such as tokenism, empty pledges, and greenwashing.
Ultimately, understanding the significance of HR in sustainable business development means acknowledging the importance of prioritising a business’ employees and workforce. This starts from recruitment and hiring, to onboarding and beyond through continual training and development. As more consumers and workers realise the urgency of sustainability and environmental consciousness, businesses should adapt and keep up by investing in employee-centric initiatives that benefit the workforce as much as the organisation.
