Reduce, reuse, recycle, retain
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| Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
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| Welcome back! This week, we’re talking “climate quitting.”
You just got a job offer! Congrats. Time to size it up: Employer-sponsored healthcare? Check. Generous vacation allowance? Nice. No clear environmental goals? Wait a minute . . . | | | In the same way that eco-conscious Gen Z consumers make purchases based on a brand’s environmental, social, and governance (ESG) claims, some Gen Zers may also make employment decisions based on their personal sustainability beliefs.
Adding to the labor lexicon, “climate quitters” are those employees who leave their jobs or turn down job offers because they feel that an employer fails to meet their ESG expectations.
A 2022 survey of 2,000 office workers in the UK found that at least half of 18- to 24-year-old workers would consider leaving a job because of the company’s net-zero policies, compared with about a third across all age groups.
That might not be great news for companies that take a lax approach to articulating ESG principles. But there’s also an opportunity for these businesses, since an organization’s climate policies can also positively affect employee retention. McKinsey research led by Lucy Pérez and coauthors found that one-third of workers said their organizations’ work with ESG topics had a strong positive effect on their own commitment to the organization and on overall employee retention.
To keep eco-minded Gen Z employees engaged, employers could consider ESG policies that signal their commitment, both internally and externally. One example could be to tie ESG outcomes to executive pay. It can also mean regularly sharing reports on how successful a business is with meeting its ESG goals, offering employees resources that help them to be more eco-friendly, or making physical workspaces more sustainable. (Meatless Mondays, anyone?)
Gen Zers have also indicated that “hearing about or experiencing climate change” has had a negative impact on their mental health. Given that Gen Zers are the age group most likely to say that mental health issues have affected their ability to perform their work effectively, employers could offer resources to help employees deal with mental health challenges and address the root causes of them.
| | | | | | More people expect that AI will lead to reskilling rather than to workforce reductions.
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| | | — Edited by Alexandra Mondalek, editor, New York
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