Staff now expect bigger focus on ESG and D&I

When it comes to the work experiences employees expect, the majority of employers (93%) believe that their workforce’s wants and needs have changed.

In fact, UK organisations think that there has been a big shift in focus on employer purpose, as well as employee mental health, environmental, social and governance (ESG) issues and diversity, equity and inclusion (DEI).

Following Aon’s UK Benefits and Trends Survey 2022, it was revealed that there has been a 44 percentage point increase in the number of employers that recognise their employees expect better awareness and handling of mental health, rising from 38% to 82% in the last year.

Plus, there are now higher expectations around employer actions when it comes to ESG and DEI issues.

For example, 77% of employers believe that staff expect better approaches to DEI, up from 70% last year, and six in 10 firms think their workers want a higher emphasis on environmental and sustainability policies or benefits, which is an increase from 51% in 2021.

Colin Barnes, head of advisory and specialities at Aon, noted that what an employer stands for, in terms of its purpose and brand, are equally as important in the current competitive labour market.

“Employees and candidates are generally seeking an employer that provides purpose, offers diversity, equity and inclusion and shows genuine care for its impact on the planet, the community in which it operates and the people that it employs,” Barnes said.

“Over the past two years, employers have been reminded about the importance of looking after their people. Initially, this was a reactive response to safeguard their employees’ wellbeing, but quickly evolved into a realisation that a healthy and resilient workforce is more engaged and more productive.

“In addition, organisations increasingly need to demonstrate to a range of stakeholders how they make a positive impact through ESG factors and sustainability. It’s increasingly a board-level issue.”

When asked what the top employee expectations are, 95% cited flexible working hours and 94% claimed it was agile working.

The study revealed shifts in this regard too, as 50% of the companies now have an agile working policy in place, up from 43% last year.

Meanwhile, 70% of organisations are planning to introduce more benefits to support ESG issues, and nearly a quarter have already done so.

72% added that they will be rolling out more benefits to support DEI and 23% have already taken action.

Despite these moves, the employers surveyed agreed that they are not meeting the needs of all generations in the workplace. 42% stated that this is true, while 81% said that meeting the needs of future generations will mean enhancing their benefits offering even more.

Barnes concluded: “Employers know that to recruit, retain and engage the right talent, they must continually redefine their employer value propositions (EVP) and benefits strategies to align with their broader purpose, their values and the significantly different needs of today’s – and tomorrow’s – employees.”

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