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Sustainability is the new status symbol in employer branding and at the same time the biggest pitfall. Too many companies confuse greenwashing with lived values. But the generation of applicants is merciless: they immediately recognize whether sustainability is strategy or show.
The figures speak for themselves. According to StepStone, 68% of employees in Germany consider sustainable practices to be a decisive factor when choosing an employer (StepStone 2023). Companies that only pay lip service to sustainability will be weeded out by the market – no matter how attractive their salaries or benefits may be.
This trend is particularly evident in the recent debates on ESG regulations in Europe. While companies are discussing which reporting requirements they must meet, applicants have long since set their own standards. For them, it is not what is in the report that counts, but how consistently sustainability is evident in daily practice. So the pressure is coming not only from legislators, but directly from the candidate market.
The expectations of the new generations
Gen Z and millennials have shifted the balance of power in the candidate market. While previous generations primarily measured employers by career paths and salary, today's talent values a different criterion: attitude. They want to know what a company stands for and whether it credibly lives up to its values.
The issue of sustainability plays a key role in this. According to Deloitte's Global Gen Z and Millennial Survey 2024, almost 50% of respondents say that environmental and climate protection are decisive factors in their choice of employer (Deloitte 2024). Particularly striking: one in eight Gen Z employees has already changed jobs because the company's sustainability practices did not match their own beliefs (Deloitte 2024). These figures prove that sustainability must not remain mere lip service. It is becoming a selection criterion that shapes careers and loyalty.
As mentioned at the beginning, the StepStone study also confirms that 68% of employees in Germany expect employers to act sustainably (StepStone 2023). It is remarkable that 38% are even prepared to forgo part of their salary to do so. In other words, for many talents, the value of credibility outweighs the classic logic of remuneration and status.
The software company Autodesk provides an example of this. The company has specifically focused its employer brand on sustainability and highlighted corresponding initiatives in its recruiting. The result: the number of applications received rose by 30%, especially from candidates who value environmental responsibility (vorecol 2024). This effect clearly shows that sustainable offerings not only enhance a company's image, but can also directly increase its appeal in the applicant market – especially among young talent.
For companies, this means that employer branding without a sustainability dimension no longer works. Young candidates don't just compare offers based on tasks or benefits, they ask the question: “Does this company really contribute to making the world a better place?” Those who don't have a convincing answer lose credibility and thus attractiveness. The expectations of the new generations are clear: sustainability is not a nice-to-have, but a basic requirement for even being considered.
From CSR to ESG: How HR anchors sustainability
For a long time, corporate social responsibility (CSR) was considered the gold standard. Companies published sustainability reports, symbolically planted trees, or donated to social projects. Today, that is no longer enough. Talents expect not only selective CSR activities, but a clear ESG strategy – in other words, the systematic anchoring of environmental, social, and governance issues throughout the entire organization.
This is exactly where HR comes into play. Sustainability must be translated into the people strategy. This includes transparent recruiting processes that take environmental aspects into account – keyword: low carbon application and onboarding procedures – as well as benefits that promote sustainable behavior, such as climate friendly mobility options. ESG should not be solely on the compliance department's agenda, but must be experienced as a living culture in everyday life.
Studies show how big the impact is: According to Harvard Business Review, companies with credible ESG measures are 3.5 times more likely to be perceived as attractive employers (Seeds for Sustainability 2024). McKinsey points out that a clear ESG strategy can reduce turnover by up to 50% (Seeds for Sustainability 2024). This makes ESG a real business case for HR, not just as an image factor, but as a tangible management tool in recruiting and employee retention.
Best practices illustrate the difference between CSR and ESG: A European consumer goods company has changed its recruiting process so that job interviews are preferably conducted digitally, saving thousands of travel appointments and tons of CO₂ emissions each year. At the same time, ESG targets are firmly integrated into the target agreements of managers. This interplay of environmental responsibility and governance measures has a far greater impact than any symbolic donation.
HR departments thus have a dual responsibility: they must weave sustainability into the employer brand while ensuring that internal structures and leadership practices support this promise. CSR is a thing of the past. ESG is the new benchmark by which companies are measured by talented individuals – and by which they can secure their long-term competitiveness.
Sustainability as part of the employer brand: success factors
A credible employer brand is not created by glossy brochures, but by consistency. Talented individuals compare what a company communicates externally with what they experience in everyday life. As soon as discrepancies become apparent, trust is lost – and with it, the company's attractiveness as an employer.
The first success factor is transparency. Studies show that applicants find companies with clear ESG goals and verifiable progress significantly more attractive (PRAXI Insight 2024). An annual sustainability report is not enough. It is crucial that progress is communicated continuously – via career pages, social media, or in direct exchanges during the application process.
The second success factor is participation. Employers who involve employees in sustainability initiatives create identification and pride. Seeds for Sustainability (2024) shows that companies with active employee involvement achieve up to 25% higher employee satisfaction. Whether in the form of green teams, sustainable innovation projects, or internal challenges, the feeling of being part of a movement strengthens brand loyalty.
The third success factor is authenticity. Greenwashing is immediately exposed, especially by younger generations. Deloitte (2024) reports that Gen Z is particularly critical of the difference between promises and actual practice. Anyone who takes sustainability seriously in employer branding must visibly anchor it in benefits, management principles, and corporate decisions.
The formula for success is clear: transparency, participation, and authenticity transform sustainability from an empty promise into a central component of the employer brand. Only when these three elements work together can sustainability unfold its full value in employer branding.
Future outlook: Employer branding in 2030
Sustainability in employer branding is still in its infancy. Candidates' expectations are constantly rising – and by 2030, the difference will be even more pronounced. Companies that consistently integrate sustainability now will gain a long-term competitive advantage in the war for talent.
One trend is green HRM. Recruiting, training, and employee retention are becoming more focused on ecological principles. Digital job interviews, climatefriendly benefits, and sustainable office infrastructure are no longer extras, but standard. According to Airswift, 40% of millennials and Gen Z already report that they prefer employers with clear sustainability credentials (Airswift 2024). This proportion is likely to rise further in the coming years.
A second trend is the measurability of sustainability in recruiting. Employers will be under greater pressure to disclose their carbon footprint for recruiting and HR processes. Companies that do this transparently build trust and stand out from the crowd. Studies show that credible ESG strategies not only increase employer attractiveness, but can also significantly reduce staff turnover (Seeds for Sustainability 2024).
The third trend concerns the link between employer branding and corporate strategy. Sustainability is becoming the connecting element that links the business model, customer approach, and HR strategy. According to McKinsey, a clear ESG anchoring not only increases attractiveness as an employer, but also reduces costs through lower turnover and higher loyalty (Seeds for Sustainability 2024).
A glance at current practice shows that this development began long ago. More and more companies are relying on digital interviews for recruiting in order to avoid travel and to ensure CO₂ emissions—a survey found that 81% of companies have already switched to video interviews (Airswift 2024). At the same time, so called green benefits are gaining in importance: mobility budgets, bicycle leasing, and CO₂ compensation models are increasingly becoming standard offerings and have a proven positive effect on applicant response. Studies such as those by Seeds for Sustainability (2024) also emphasize that clear ESG targets can reduce staff turnover by up to 50%.
Employer branding in 2030 therefore means that sustainability is the foundation on which an employer's attractiveness rests. Those who act early will benefit twice over – from a stronger talent pool and a more resilient position in the market.
Conclusion: Sustainability as a distinguishing feature of the coming decade
Sustainability has quickly evolved from a voluntary initiative to a decisive competitive factor. For employer branding, this means that talented individuals no longer choose based solely on career paths or salary, but also on credibility and attitude. Those who visibly integrate sustainability into their culture, strategy, and HR processes gain an advantage that salary increases or additional benefits alone cannot provide.
The studies are clear: according to StepStone, 68% of employees in Germany pay attention to their employer's sustainable practices (StepStone 2023). Companies with a credible ESG strategy are 3.5 times more likely to be rated as attractive employers (Seeds for Sustainability 2024). And according to McKinsey, consistently embedding ESG can reduce staff turnover by up to 50% (Seeds for Sustainability 2024).
This presents a clear task for HR departments. They must understand sustainability not only as a communication tool, but as an integral part of the employer brand. Transparency, participation, and authenticity are the success factors that make the difference.
The outlook for the future shows that employer branding in 2030 will be inconceivable without sustainability. Companies that act consistently today are positioning themselves as credible and attractive employers and securing the best minds of tomorrow. Those who hesitate will lose talent, trust, and, as a result, their own competitiveness.
Sustainability is not a side project.
It is the question of whether your employer brand will still be convincing tomorrow.
Would you like to understand how ESG and employer branding can be strategically interlinked – and how you can gain real competitive advantages from this? Contact us: we offer sound, practical advice with a view to your long-term talent strategy.
Sources
- Deloitte (2024): Global Gen Z and Millennial Survey 2024.
- vorecol.com(2024): Best Practices for Implementing Green Recruitment Strategies
- StepStone (2023): Nachhaltigkeit auf dem Arbeitsmarkt – Deutschland & UK.
- humanresourcesonline (2022): Schneider Electric shows that the HR function can lead organisations' reach for sustainability goals
- PRAXI Insight (2024): Sustainability and Employer Branding: The Winning Formula for Attracting Talent.
- Seeds for Sustainability (2024): ESG as the Key to Attracting and Retaining Top Talent.
- Airswift (2024): Benefits of ESG: Are sustainable practices key to talent retention?.
- McKinsey (2024), quoted from Seeds for Sustainability (2024).
- Harvard Business Review (2023), quoted from Seeds for Sustainability (2024).
